North Mountain Nursery, Inc.: Statement of Cash Flow

3 Pages Posted: 21 Oct 2008 Last revised: 27 Nov 2018

See all articles by Luann J. Lynch

Luann J. Lynch

University of Virginia - Darden School of Business

Abstract

After interviewing for the position of chief financial officer at a small business, North Mountain Nursery, John Powers decides to look at its financial statements for 2006. Discovering that there is no statement of cash flow, he decides to create one himself.

Excerpt

UVA-C-2259

Rev. Oct. 18, 2018

North Mountain Nursery, Inc.: Statement of Cash Flow

John Powers felt the warm April breeze on his face as he traveled south on Highway 29 after finishing his interview at North Mountain Nursery, Inc. It was his second interview with Tim Dunton, the owner of , for the position of chief financial officer.

Driving down the highway, Powers reflected on his conversation with Dunton as the interview came to a close. Dunton had said, “John, you have some skills we could really use. We have been growing quite a bit over the last couple of years, and we need more sophistication in the finance and accounting area. We are getting too big just to employ a bookkeeper. We need someone who can help us think intelligently about the financial future of the business. Let me pencil out an offer and get back with you in the next couple of days.” Encouraged by Dunton's comments, Powers had responded, “This sounds great, Tim. I wonder if I might get a copy of the company's financial statements to take with me. I would like to look them over. You know—just to see what things look like.” Dunton had disappeared down the hall into the bookkeeper's office and then returned with several pages for Powers to take with him. “Here's a complete set of the financial statements for our 2006 year.”

Powers was inspired by the conversation and excited about the position's potential. After working in several large organizations, he had developed an interest in smaller businesses. And he had a keen interest in the outdoors, landscaping, and watching things grow each year as the seasons changed. Powers understood the opportunity that the area's booming residential construction presented for a company like North Mountain Nursery, and he was sure he could help the company make the most of it. He just hoped that the company's financial condition could support having him on staff, so he planned to dig into its financial statements to see how things looked after he got home later that day.

. . .

Keywords: cash flow

Suggested Citation

Lynch, Luann J., North Mountain Nursery, Inc.: Statement of Cash Flow. Darden Case No. UVA-C-2259, Available at SSRN: https://ssrn.com/abstract=1276998

Luann J. Lynch (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4721 (Phone)
434-243-7677 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/lynch.htm

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