The case demonstrates the way a manager can affect the organization’s financial statement and the items it possesses. Specifically, the financial management determines the alternatives the managers make about (a) the management of cash, (b) the magnitude of net income, (c) the structure of debt, and (d) the use of debt or equity to finance assets. The case describes two cash related cycles, i.e. financing cycles and operating cycles and the needs to manage it carefully.
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