The viewpoint taken in the course is that of the senior financial officer of a business firm. The focus is on the management of cash, accounts receivable, inventory and short and intermediate term liabilities. Emphasis is placed on the analysis and forecasting of financial statements, and financial modeling for planning and controlling the growth of the business enterprise.
By the end of the course, the learner should be able to:
- Analyze the financial statements of a firm as a basis of appraising business performance from the viewpoint of three groups: managers, owners, and lenders; identify critical points using standardized professional tools of analysis, understand what to do to handle identified weaknesses.
- Appreciate the importance of and learn how to develop an appropriate working capital policy; apply the various tools and techniques available to help in the management of cash, accounts receivable and inventory; distinguish the various sources of short-term financing such as accounts payable, bank loans, and commercial paper.
- Produce a Statement of Cash Flow (SCF); understand differences between cash flow and income; assess SCF structure and components; understand how the management of cash flow is critical to successful business performance; understand what to do to handle weaknesses identified via professional SCF analysis.
- Prepare pro forma financial statements and cash budget; interpret these statements for potential risk sources; conduct sensitivity analysis. Appraise these projections using tools such as Sustainable Growth and the Cash Conversion Cycle. Understand the limitations of these tools in real business situations, and what could be done to address these limitations.
- Realize, in the context of simulated business situations, how market developments may significantly impact financial statements; appreciate that multiple drivers may shape these impacts and that the firm may not have full information; recognize and quantify these impacts and their likely consequences; develop and implement effective managerial responses to both challenges and potential opportunities; quickly update and integrate previous strategic decisions; develop and execute effective communication in support of managerial decision making.
- Statement of cash flows
- Financial statement analysis (horizontal vertical, and ratio analysis)
- Working capital
- Proforma financial statements
- Financial risk management
Prerequisite(s): 1 of ACCT*2230, BUS*2230, HAFA*3070, HTM*3070
Restriction(s): Registration in BCOMM or BA.EURS area of emphasis in European Business Studies
|Case Reports and Peer Evaluations (2)||15%|
|Case Discussion: Participation and Reflective Report||20%|
|Online Final Exam||55%|
Additional Technical Requirements
This course will use McGraw-Hill Connect. Connect is a digital learning environment administered by McGraw-Hill Education. Visit their website to complete a check that ensures your computer meets the Connect system requirements.
This course will use the Respondus tool to invigilate one or more exams. In order to use Respondus LockDown Browser and Monitor, you must meet the following technical requirements:
- Operating Systems: Windows 10, 8, 7; Mac OS X 10.10 or higher.
- Memory: Windows 2 GB RAM; Mac 512 MB RAM.
- For Mac users: Safari must function properly on the computer.
- Mac users must have Adobe Flash Player installed to Safari, even if a different browser is normally used.
- Functioning webcam and microphone. The webcam and microphone can be built into your computer or can be the type that plugs in with a USB cable. (You will be required to do an environment scan of your room, so please ensure you can move your computer, laptop or webcam for this scan.)
- A broadband Internet connection. It is recommended that you access the Internet via a wired connection.
*Course details are subject to change.