Mixed Signals at Gabba Enterprises (Case Study‪)‬

CASE DESCRIPTION This case requires the student to understand how a statement of cash flows is related to and can be derived from a company's income statement and balance sheets. Students must produce a complete statement of cash flows using both the direct and indirect methods. The student must then interpret the results of the cash flow statement in light of other information provided in the case and the other financial statements in terms of its impact on the feasibility of financing a major expansion of a business enjoying tremendous growth and expecting continued success. The case has a difficulty level of four to five as it would be appropriate for either senior level or graduate level courses. The case is designed to be taught in two to three class hours and is expected to require three to four hours of outside preparation by students.