Assignment
Critical in your analysis of this case is your understanding of the importance of cash to a business. This case focuses on the impact of rapid growth on cash and the financing gap between receivables and payables; your ability to delineate the components of a cash flow statement and prepare one using the indirect method to assess the stages of business development; lastly to demonstrate your ability to understand the linkages between the choices that businesses have to raise cash and the components of the cash flow statement you have prepared.
Your individual case analysis should include the following:
1. Based on information found in the case identify a minimum of three key factors that effect the success of Big City Courier. (To do this, you must consider how Big City Courier may be different (and/or the same) as their competitors; what does the business need in order to be successful?; what influences the companies financial position e.g. labour costs? Capital costs?
2. Describe the importance of cash to this business as it relates to growth and profitability. Can a growing and profitable company fail?
3. Using the indirect method and information from the case (there is enough there), prepare the statement of cash flows for Big City Courier for January, February and March 1997 and include as Appendix A.
4. Provide an analysis of the Cash Flow Statement - what were the key trends/highlights (even outliers), that the statement brought to the forefront in the operating, financing and investing activities of the company?
5. Select and calculate financial ratio's (best fit) and use to further explain the situation at Big City Courier.
6. Identify a minimum of three alternatives available to Taylor to improve the cash situation.
7. Provide and support your recommendation.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Case.rar