Academic journal article Journal of the International Academy for Case Studies

Cape Chemical: New Venture Financial Planning

Academic journal article Journal of the International Academy for Case Studies

Cape Chemical: New Venture Financial Planning

Article excerpt

CASE DESCRIPTION

The primary subject matter of this case involves a review of the fundamentals of financial statements, preparing projected financial statements for a new venture and examining sources of information, which will aid financial statement preparation. The case requires students to have an introductory knowledge of accounting, finance and general business issues thus the case has a difficulty level of three (junior level) or higher. The case is designed to be taught in one class session of approximately 1.25 hours and is expected to require 3-4 hours of preparation time from the students.

CASE SYNOPSIS

The case tells the story of Ann Stewart, a young business professional who decided to start a new business. Stewart was a sales manager for St. Louis Chemical, a distributor of chemical headquartered in St. Louis. St. Louis Chemical was sold and the acquiring firm did not require her services. As a result of her chemical distribution business experience and the contacts with customers and suppliers, she decided to begin a chemical distribution business. Stewarts has a solid understanding of the chemical industry and the distribution process and while at St. …

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