Case ID: C-2022
Solution ID: 40046

Compton Computing Systems A

Case Analysis

A manager is faced with problems in analyzing cash flows for the year. He has completed a projected balance sheet and projected income statement, and wants to construct a projected statement of cash flows for the current year (case timing is very near the end of the year). The case serves as an introduction to the idea of cash flow analysis, and the relationships among balance sheet, income statement, and statement of cash flows. It provides a good opportunity for students to discuss expected changes to cash flow statements resulting from changes in management policies or changes in earnings.

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