Cash Flows: Case Study and Hands-On Classroom Activity

• In Event: Reception with Effective Learning Strategies Posters

Abstract

Students and business owners alike can struggle with understanding the difference between profit and cash flow. What can look like a profit on paper can sometimes result in an empty bank account. This submission outlines the use of a real-world client scenario and brings it into the classroom, turning it into a hands-on activity. Putting students in the shoes of the business owner, this activity illustrates the difference between profit and cash flow. Additionally, it shows the difficulties in trying to expand a business. This client scenario and case study revolves around a business attempting to purchase approximately $1MM of inventory and the repercussions of the time it takes to receive the product, sell it, and collect on sales. It makes for an interesting lesson and an engaging activity for students.

Author

• Bryan Coleman, Assumption College