This case concerns the basic principles of accounting and the process of cash flows. In Part I, students are not to enter a list of business events, but they need to realize what they were given by a 2011 record, 2012 A balance sheet and a profit and loss statement, 2012. Part II requires students to how I prepare for a part of 2012 cash flow statement with the same three statements in Part III, students must rely on a 2011 balance sheet and a … Read more »

This case concerns the basic principles of accounting and the process of cash flows. In Part I, students are not to enter a list of business events, but they need to realize what they were given by a 2011 record, 2012 A balance sheet and a profit and loss statement, 2012. Part II, students need a 2012 cash flow statement with the same three statements as to prepare for Part I. In Part III, students must rely on a balance sheet in 2011 and a 2011 cash flow statement work backwards to derive the 2010 year-end balance sheet. There are two versions of this case: The case of Option 2 is a bit more difficult than the case of option 1. Trainers should Option 2 if they feel students are well grounded in their understanding of the financial statements and the usual reporting relationships of a typical number of business events. Both cases reinforce student learning in relation to the financial reporting process and the connectivity between the financial statements. Note that only one version of the housing are used due to the presence of a certain overlap of the two.
«Hide

from
Mark E. Haskins
Source: Darden School of Business
11 pages.
Release Date: 9 August 2012. Prod #: UV6491-PDF-ENG
Horse vet, LLC transaction analysis and cash flow statement preparation Option 2 HBR case solution