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Case Studies by Elizabeth Demers

2 case studies

by Publication Date
published: 25 May 2011

  • Topic: Economics & Finance
  • Industry: Multiple
  • Region: Global

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Abstract:
This is an international version of the classic ratio detective exercise that is found in many US-based textbooks and other case series. The objective is to initiate students into balance sheet analysis via the use of common-size balance sheets. The case helps students to understand how the economics of the firm are revealed in the firm’s financial statements. Effectively employed, it can also teach students to think about the links between asset composition and financial structures, and how these relate to industry economics.

Pedagogical Objectives:
The objective is to initiate students into balance sheet analysis via the use of common-size balance sheets. The case helps students to understand how the economics of the firm are revealed in the firm’s financial statements. Effectively employed, it can also teach students to think about the links between asset composition and financial structures, and how these relate to industry economics.

Keywords:
Common Size Balance Sheet, Financial Statement Analysis, Ratio Analysis

Prizes won:
- 2018 Case Centre Best-selling Case in Finance, Accounting and Control
- 2017 Case Centre Best-selling Case in Finance, Accounting and Control
- 2016 Case Centre Best Selling Case in Finance, Accounting and Control
- 2015 Case Centre Best-selling Case in Finance, Accounting and Control

published: 27 Aug 2010

  • Topic: Economics & Finance
  • Industry: Theme parks; Airlines; Mining Consulting
  • Region: Global

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Abstract:
This case introduces the Statement of Cash Flows by way of a general explanation of the purpose and format of the statement, followed by an assignment involving the analysis of three very different companies’ statements of cash flows. The latter should stimulate significant in-class discussions and learning opportunities. Although all 3 statements are IFRS-compliant, the examples include both the direct and indirect methods.

Pedagogical Objectives:
To teach students how to understand and interpret the information presented in the statement of cash flows; to introduce financial statement analysis of the cash flow statement.

Keywords:
Statement of Cash Flows, Financial Statement Analysis, Direct Method, Indirect Method, Cash Flows from Operations, Free Cash Flows

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