AFM211 Lecture Notes - Lecture 1: Cash Conversion Cycle, Cash Flow Statement, Cash Flow

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

Document Summary

Role: geoffrey taylor, owner and manager of bcc. Request: wants to understand negative cash & a plan of action. April 7th 1997 specific date and end of the first quarter, partway through the fiscal year: pay his drivers in the next few days (not sure if he has enough cash to make payroll) Revenue streams through delivery for its customers: main clients are service organizations wholesalers, retailers, law offices, consultants & financial institution. Value proposition: on time delivery, reliable, competitive pricing, quick delivery, delivery confirmation, quick responses (get there fast and you deliver fast) Cost structure: commissions to the drivers, 65% the commission is more variable: fixed costs: rent, salaries. Have to deliver a lot of packages to cover fixed costs: (could have calculated a break-even cost analysis) Why does the business exists: goals cash in bank, enough money to hire another salesperson (growth),