Grant Lewis did Chartered Accountancy (CA) and is a senior member in management of one of the six biggest professional services companies; he was inspecting the viability of starting a CA company with two of his old colleagues. Mr. Lewis recognized the need for external financing during the start up stage of the endeavor. Before the scheduled meeting with his bank’s manager, Grant had been requested to formulate a cash flow statement for monthly basis, while providing balance sheet along with statements of income for the initial year after the commencement of operations.
The main aim of this study is make pupils understand the links and differences between an income statement and a cash flow and to develop these financial statements. The case also enables pupils discuss the merits and drawbacks of starting a small company, to examine the bank lending procedure, and become comfortable with some of the fundamental components and sources of pertinent market information for a fresh enterprise.
Publication Date: 07/20/1999
This is just an excerpt. This case is about Finance
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