With this advice, the entrepreneur believed he could determine whether he ought to invest money into the franchise.
Learning Objective:
To provide the students with a quantitative exercise that is good to practice for projecting financial statements and cash flows.
To explicitly reveal the connection between balance sheet, income statement, and the cash flow.
To review the behavior of prices in relation to changes in quantity (sensitivity analysis).
To talk about potential sources of funding.
This case would function as the first instance in the financial planning section of a class. It's mainly a quantitative exercise designed to reveal an entire set of financial projections, under an assortment of premises.
Publication Date: 01/01/1981
This is just an excerpt. This case is about Accounting
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