Abstract

Amit had successfully run his café business for three months and was looking to improve sales performance. He also wanted to leverage on other alternative sources of revenue generation. He wanted to spend more on advertising and marketing activities to improve total sales. But before going ahead with his decision, Amit wanted to determine the cash balance available with him. The present case study can be helpful in understanding: the concept of cash flows, purpose of cash flow analysis, the purpose of preparing a cash flow statement for analyzing cash flows from different activities.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The concepts of cash flows and cash equivalents
• Meaning and scope of cash flows from Operating Activities
• Meaning and scope of cash flows from Investing Activities
• Meaning and scope of cash flows from Financing Activities

Keywords

Accounting; Accounting principles; Accounting concepts; Accounting Standard-3; Cash; Cash equivalents; Cash flow statement; Cash flows; Cash inflows; Cash outflows; Cash flows from operating activities; Cash flows from investing activities; Cash flows from financing activities