North mountain nursery case Page |1

Accounting for managers

Case study 6

Mohammed Yaseen Qureshi

PES1202202920
MBA ‘C’ Section
 North mountain nursery case Page |2

The following case is about an interaction between a CEO 1of an incorporation named North
Mountain Nursery and an interviewee for the position of CFO 2 namely Mr. Tim Dunton and Mr. john
powers respectively. Mr. john powers impress the CEO and they come to the end of the interview
when Mr. powers ask for the financial statements of the company to for him to see and get an idea of
their financial segment of their company. When the CEO gives Mr. powers the asked financial
statements of the year 2006, he later notices that the cash flow statement was missing from the
financial statements. Hence, Mr. powers decide to create a cash flow statement referring to the income
statement and balance sheet given the CEO Mr. Tim Dunton.
The cash flow statement is done by me and attached below:

Interpretation:
cash flow of north mountain nursery inc. has profitably increased from $106300 to $284750 in the
following year with increased cash flow of $178450. This shows that this incorporation is doing well
and good in the business.

1
CEO- chief executive officer
2
CFO- chief financial officer