Provide information about an entity’s investing and financing activities during the accounting period, as well as showing how much cash was generated by the period’s operations.
· Familiarize the participants with the relevant financial information needed to make management decisions.
· Practice using financial information in managerial decisions.
· Understand the basic concepts of financial reporting in the profit and loss statement, balance sheet, and cash flow report.
· Understand and work more effectively with the financial managers of the organization.
The course help the participants answer questions such as the following:
· How much cash was provided by the normal, ongoing operations of the company?
· In what other ways were significant amounts of cash raised?
· Is the company investing enough in new plant and equipment to maintain or increase capacity and to replace old facilities with more efficient ones?
· Is the company reinvesting excess cash in productive assets, or is it using the cash to retire stock?
· To what extent are the company’s investments being financed by internally generated cash and to what extent by borrowing or other external sources?
· For the cash obtained externally, what proportion was from debt and what from equity?
· Is the company having to borrow cash in order to maintain its cash dividend payments?
Lecture and Case Study Methods.
Purpose of the Cash Flow Statement
Sources and Uses of Cash
· The Cash Flow Statement
Ø Statement Categories
Ø Investing Activities
Ø Financing Activities
Ø Noncash Transactions
Ø Cash Flow from Operating Activities
Ø Indirect Method Calculations
Ø Summary of the Cash Flow Statement
· Misconceptions About Depreciation
Ø Cash Flow Earnings
· Preparation of the Cash Flow Statement
Ø Cash Flow Worksheet
Ø Worksheet Entries
Ø Statement Preparation
Ø Summary of Preparation Procedures
· Analysis of the Cash Flow Statement
Ø Cash Flow Projections
· Introduction to Basic Accounting
· Financial Reports
· Accounting Process
· Basic Concepts and Financial Reports
Ø Basic Concepts
Ø Balance Sheet -
Ø Income Statement -
Ø Statement of Owners’ Equity
Ø Statement of Cash Flow
· Financial Reporting Analysis
· Business Objectives
· Return on Investment
· Sound Financial Position
· Structure of Analysis
· Investment Turnover and Profit Margin
· Price/Earning Ratio
· Profitability Ratios
· Profit Margin
· Investment Utilization Ratios
· Investment Turnover
· Working Capital Measures
· Financial Condition Ratios
· Liquidity and Solvency
· Dividend Policy
· Balanced Scorecard
· Published Annual reports
· Working Capital Management
· Cash Flow Management
· Account Receivable Management
· Inventory Management
· Fixed Asset Management
· The Classification of Costs
· Cost Information and Decision Making
· Different Costs for Different Purposes
· The Behavior of Costs
Ø Relation of Costs to Volume -
Ø Variable and Fixed Costs
Ø Cost Volume Diagram
· Break Even Point Analysis
Ø The Profit Graph
Ø Break-Even Volume
Ø Operating Leverage -
Ø Cost Information and Decision Making
· Source of Financing (Debt and Equity)
· Capital Budgeting and Cost of Capital.