Search for Cases
Details
Case Code: CLFIN019
Case Length: 4 pages
Period: 2020
Pub Date: 2020
Teaching Note:Available
Subject : Finance
Price:Rs.150
Organization :Amit Traditional Hot Beverages (Fictitious)
Industry : Food and Beverages Industry
Countries : India

Cash Flow Classification and Analysis for Decision Making

 

ABSTRACT

Amit had successfully run his café business for three months and was looking to improve sales performance. He also wanted to leverage on other alternative sources of revenue generation. He wanted to spend more on advertising and marketing activities to improve total sales. But before going ahead with his decision, Amit wanted to determine the cash balance available with him. The present case study can be helpful in understanding: the concept of cash flows, purpose of cash flow analysis, the purpose of preparing a cash flow statement for analyzing cash flows from different activities.
Buy Now
To download this case click on the button below, and select the case from the list of available cases:
Short Case Studies
OR
Express Checkout
 

Issues:

  • The concepts of cash flows and cash equivalents.
  • Meaning and scope of cash flows from Operating Activities.
  • Meaning and scope of cash flows from Investing Activities.
  • Meaning and scope of cash flows from Financing Activities.
Introduction
Amit had successfully run his café business “Amit Traditional Hot Beverages (ATHB)” for three months. It was the start of a new financial year (2019-20) and he was doing short-term planning for another three months. He had a fixed deposit account that he had maintained for ATHB and he withdrew the money from that and placed it in the current account (The total amount withdrawn included interest of Rs.5,000). In addition, he also introduced another Rs. 500,000 into the business and placed that amount in government bonds that were encashable to their full value at any point of time..

Keywords

Accounting; Accounting principles; Accounting Concepts; Accounting Standard-3; Cash; Cash Equivalents; Cash flow statement; Cash flows; Cash inflows; Cash outflows; Cash flows from operating activities; Cash flows from investing activities; Cash flows from financing activities



* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.