case study

Financial decisions often place heavier emphasis on one type of financial statement over the others. Consider each of the following hypothetical situations independently.

Instructions

In each of the situations above, state whether the decision-maker would be most likely to

place primary emphasis on information provided by the income statement, balance sheet,

or statement of cash flows. In each case, provide a brief justification for your choice.

Choose only one financial statement in each case.

Case Study-2
PGRD 495- Accounting and Finance Fundamentals (sections
145&461)
Deadline:4th November, 2024(Monday)
Case Study/
Assignment
10 Marks
Instructions:
1. The answer should be with quality material
2. The Case Study’s the copy must be upload on LMS. Late submission loses one mark.
Fall Semester 2024-25
(Class Study-2)
PGRD-495- Accounting and Finance Fundamentals
Name of the Student:————————————–University ID——————————————-Contact:—————————————–
Instructor- Dr. Sajid Ali
Question:
Financial decisions often place heavier emphasis on one type of financial statement over the others. Consider
each of the following hypothetical situations independently.
A. An investor is considering purchasing common stock of the 24/7 Fitness company. The investor plans to
hold the investment for at least 3 years.
B. Xerox is considering extending credit to a new customer. The terms of the credit would require the
customer to pay within 60 days of receipt of goods.
C. The president of American Airlines is trying to determine whether the company is generating enough cash
to increase the amount of dividends paid to investors in this and future years, and still have enough cash
to buy new flight equipment as it is needed.
D. PNC Bank is considering extending a loan to a small company. The company would be required to make
interest payments at the end of each year for 5 years, and to repay the loan at the end of the fifth year.
Instructions
1
Instructor- Dr. Sajid Ali
Case Study-2
PGRD 495- Accounting and Finance Fundamentals (sections
145&461)
In each of the situations above, state whether the decision-maker would be most likely to
place primary emphasis on information provided by the income statement, balance sheet,
or statement of cash flows. In each case, provide a brief justification for your choice.
Choose only one financial statement in each case.
2
Instructor- Dr. Sajid Ali