APPENDIX I
Central case, Trader
This central case is introduced to support Chapters 5 and 10. In Chapter 5 the case exemplifies the impact of interest rate risk on the financial statements of the firm. In Chapter 10 the case illustrates each step of the analytical method so that it comes to life. The name of the firm in the central case is Trader.
Trader is a European trading company that operates in the automotive sector. It has various subsidiaries across Europe and also has a branch in the United Kingdom. The functional currency of Trader is the euro.
Trader’s primary revenue source is the wholesale spare parts business. It buys products in large quantity from mass spare parts producers which are located in various countries. It sells ...
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