Case Studies (Essay/Report) Midterm Part a, Week 7: 20% of Final

Grade

Course Identification

Course title / Number INTERNATIONAL TRADE FINANCE / BICG9403

Teacher’s name: Gautam Jethra

Due: Friday, March 10, 2023

Term: Winter 2023

Student Identification

Student Name: ______________________________________ Student ID: ______________

Instructions
 In your answers kindly use concepts, principles and strategies learnt in class.
 Kindly upload your submission on Canvas.
 Use professional business language.
Rubrics:

4 (Expert) 3 (Proficient) 2 (Learner) 1 (Novice)

Integration of The assignment The assignment The assignment The assignment

Information demonstrates that the demonstrates that thedemonstrates that does not
student has applied student for most partthe student to a demonstrate that
concepts learned in the applied concepts learned
certain extent the student has
course. in the course. understands and has fully understood
Concepts are integrated Some of the conclusions, applied concepts and applied
into student’s insights and however, are not learned in course. concepts learned in
provide concluding supported in the the course.
remarks that show assignment.
analysis and synthesis of
ideas.

Grammar, The assignment contains 1 to 2 errors in grammar, 3 to 4 errors in More than 4 errors
Spellings and no errors in grammar, punctuation, and/or grammar, in grammar,
APA punctuation, and/or spelling and/or all punctuation, and/or punctuation, and/or
referencing spelling and/or all sentences are complete, spelling and/or most spelling and/or
sentences are complete, well-constructed, and sentences are contains sentence
well-constructed, and most are stated in complete, well- fragments or run-
stated in business terms. business terms. 1 to 2 constructed, and but on sentences.
All references citied in errors in APA format not stated in More than 4 errors
APA format. referencing. business terms. 3 to in APA format
4 errors in APA referencing

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 format referencing

Case Studies (Report): Open book

Question/s:
Answer: Minimum two or three paragraph answers for each question.

1. What is an Income Statement? What does an Income statement report?

2. What is a Balance Sheet? What does a Balance sheet provide?
3. What is a Statement of Cash flows? What does a Statement of Cash Flow provide?

1. An Income Statement known as a Profit and Loss Statement (P&L), is a financial statement
which reports a company's revenues and expenses over a specific period, around a quarter
or a year.

The Income Statement provides a detailed summary of a company's financial performance by

reporting its revenues, cost of goods sold, gross profit, operating expenses, net income
before taxes, taxes paid, and net income after taxes. This allows many parties such as
investors, analysts, and management to evaluate a company's profitability, revenue trends,
and cost management over time.

The Income Statement is one of the three primary financial statements, along with the
Balance Sheet and Cash Flow Statement, that companies use to report their financial
performance.

2. A balance sheet is a financial statement that provides a every activity of a company's

financial position at a specific point of time, usually at the end of a reporting period. It shows
the company's assets, liabilities, and equity.

There are many asset resources that a company owns and uses to generate revenue, such
as cash, inventory, property, plant, and equipment. Liabilities are the company's obligations,
such as loans, accounts payable, and taxes owed. Equity represents the remaining value of
the company after all liabilities are paid, which is equal to the company's assets minus its
liabilities.

The balance sheet provides valuable information about a company's financial health and its
ability to meet its obligations. By comparing a company's assets and liabilities, investors,
creditors, and analysts they can evaluate its solvency, liquidity, and profitability. They can
also identify any potential risks or opportunities that could impact the company's future
performance. Moreover, the balance sheet is often used in conjunction with other financial
statements, such as the income statement and statement of cash flows, to gain a complete
understanding of a company's financial condition.

3. Cash flow statement is a tool which is used to manage finances by tracking cash flow for an
organisation. This not only helps in evaluating the performance of company but also enables

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to forecast the need of a company for short term planning. Companies usually try to maintain
their positive cash flow to execute their operations.

The statement of cash flows is important because it shows how a company generates and
uses cash, which is critical to its operations. It provides information about where the cash
came from and how it was spent, including cash received from customers, payments to
suppliers, investments in property, plant, and equipment, and payments to shareholders in
the form of dividends.

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