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Case 1

Suppose the following Income Statements and Cash Flow Statements of companies A, B

and C were presented to you. As Chief Financial Officer you are required to make an

analysis and recommendation on which company is more attractive to invest. The

President of JFC Company asks you to answer the following questions:

Guided Question

1. What can you say on about the income statement and cash flows statement of

Company A, B, C?

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2. Which do you think is a more attractive company to invest? Why?

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3. What do you think is the role of financial management based on the Case 1?

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Sagot :

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