Read:
Chapter 1 - Introduction to the Case Method
Chapter 2 - Financial Statements
Meet at C112 next week unless otherwise instructed.
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3 comments:
Instructors view case courses as sequences of problems that gradually foster the development of decision making skills.
CASE STUDY METHOD
1. Define a problem;
2. Sort RELEVANT from IRRELEVANT information;
3. Separate FACT from OPINION;
4. Interpret and analyze information;
5. Come to a reasoned decision and course of action;
6. Communicate your thoughts clearly and persuasively to other during class discussions.
Organization of Reports
1. Executive Summary (written last presented first);
2. Statement of Problems, Opportunities and Objectives;
3. Analysis of the situation;
4. Identification and evaluation of alternatives; and
5. Decision, course of action and implementation.
Financial Statements
Income Statement (Statement of Earnings)
• Shows how profitable an enterprise was during a specific period of time, usually a 1 year period
• Matches the revenue generated against the related expenses incurred for the same period of time.
Balance Sheet
• Shows the financial position of an enterprise on a particular date.
• Assets = Liabilities + Equities
Statement of Retained Earnings
• An enterprise's earnings remaining at the end of the Income Statement's reporting period, after dividends on preferred and common shares have been paid.
• Retained earnings from previous year
+ Net Earnings current year
- Dividends
= Retained earnings for current year
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