Summary:

The South African Small Business Foundation (SASBF) was managed by Miriam Keita, who was evaluating three businesses seeking a $25,000 government grant after experiencing cash flow problems. The companies Mango-A-GoGo and PEBON Ginseng, both experienced rapid sales growth but unexpectedly ran out of cash while expanding their operations. Meanwhile, Fabric Import Group had struggled with declining sales and profitability due to reduced product quality. Students will analyze all three companies' Statement of Cash Flows and interpret the sources and uses of cash to help the business owners understand the importance of good cash management. This short financial and accounting management case focuses on the interpretation of cash flow statements and is designed for the early stages of an introductory business class at the undergraduate level.

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Three Companies out of Cash

Author: Alexander (A.J.) Miller

Category:

Finance

Preamble:

This case was edited by Richie Bloomfield. Final production of this case study was made possible by the Library and Learning Services team at Huron University College. The author’s intent for this material is to be used in a classroom or other management learning settings. Names or other identifying information may be altered to protect confidentiality.

This content is freely available without charge to readers and their institutions. All content is published under the Creative Commons License, Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0). Readers are allowed to read, download, copy, distribute, print, search, or link to the full texts of this case without seeking prior permission from the author(s). (Revised 04-16-2024)

Published 08-10-2022

Copyright:

Keywords

Cash flow