AFM211 Lecture Notes - Lecture 1: Operating Cash Flow, Compound Annual Growth Rate, Cash Flow

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM211
• Professor: Nancy Vanden Bosch

Document Summary

Re: assessment of big city courier"s cash position. My name is _____ and i am the consultant hired to assess the cash position and financing of big city courier for the period january to march 1997. In the following memo, i address and analyze the following: Financials: trends, cash flow, forecasts and sensitivity. In addition, i have summarized my findings in exhibits 1 3 (please see attached): financials. As noted in exhibit one, sales (net of tax) have increased within the given period, with growths of 41. 9% and 13. 26% respectively. This implies that while bcc has been profitable within the past three month, a positive sight that the company is continuing to grow. However, expenses have also been growing, but this is to be granted when sales are increasing. A positive is that these expenses are growing at a much lower rate than the sales growth experienced.