Financial Reporting & Analysis - Case 10-10_Pgs. 435-437.pdf
Read and complete case study 10-10, "Eat at My
Restaurant" in your text. Address the following elements, which are also
“required” elements at the end of the case study:
Comment on the difference between net cash provided by
operating activities and net income.
Speculate on which number is likely to be the better indicator of
Comment on the data reviewed for each firm.
Do any of these firms appear to have a cash flow problem?
Your answers should be in an essay form with an introduction
and conclusion; ensure you are addressing each element clearly and thoroughly,
following these guidelines:
Requirement (a) of the problem should be answered in general
terms; you do not need to consider the 3 firms in the case. However, you do need to make a choice and
rationalize that choice.
When addressing requirement (b), you should make AT LEAST 4
observations on each firm, focusing on the cash flow ratios provided.
All information should be considered when answering
requirement (c). Even if you don't think
any one company is in "trouble," you should still choose a company
and support your choice.
Your paper should be at least 3 pages long