Financial Essentials

 

Course Specifications

Course length 7 day(s)

 

Course Description

Companies are composed of a number of job roles and varying degrees of responsibility. Some roles are so different that two people within the same company may never come in contact with each other over the entire length of their employment. All employees, though, are working towards the same goal—the financial success of the company. However, individuals cannot be expected to contribute to the financial success of the company unless they understand the principles upon which finance is based. In this course, you will explore the fundamentals of finance and discover how all areas of the company contribute to its financial well-being.

Performance-Based Objectives

Upon successful completion of this course, students will be able to:

• describe critical aspects of the budgeting process, including budgeting matters and methods of budgeting.

• investigate the three major components of a budget. You will also examine the process of managing a budget.

• determine the internal and external parties affected by a company's operations. You will also examine the cash-based and accrual-based methods of accounting.

• thoroughly examine the makeup of an income statement, a balance sheet, and a cash flow statement.

• use common-size financial statements to conduct both a trend evaluation and a competitive evaluation. You will also look at the many financial ratios that offer valuable information about a company's ability to generate revenue, meet financial obligations, and manage debt.

• examine the decision-making process when considering potential investments. You will also explore a number of financial formulas that will help you assess the value of such investments.

Course Content

Day 1: Managing a Budget

Topic 1A: Budgeting Benefits

Topic 1B: Budgeting Methods

Topic 1C: Prepare a Budget

 

Day 2: Exploring the Ground Rules of Finance

Topic 2B: Control a Budget

Topic 2A: Who Needs Finance?

Topic 2B: Track Revenue and Expenses

 

 

 

Day 3:  Using Financial Statements

Topic 3A: The Income Statement

Topic 3B: The Balance Sheet

Topic 3C: The Cash Flow Statement

 

Day 4: Evaluating Performance

Topic 4A: Make Comparisons

Topic 4B: Determine Liquidity

Topic 4C: Determine Activity

Topic 4D: Determine Profitability

Topic 4E: Determine Solvency

 

Day 5: Making Investment Decisions

Topic 5A: The Investment Decision-Making Process

Topic 5B: Conduct a CVP Analysis

Topic 5C: Project Appraisal Techniques

 

 

 

Day 6: Budget Reports and Graphs

Budget vs Actual Report

Profit and Loss Budget Performance

Budget vs Actual Graph

 

 

Day 7:  Certification Exam

 

 

 

Appendix A: Market Demand Calculation Details

 

Appendix B: Table of Discount Factors

 

Appendix C: Activity Worksheets