Cash Flow and Treasury Management

Objective

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.

Benefits

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?

Methodology

Lecture and Case Study Methods.

Course Content

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  Ratios

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  Contribution

Ø  Cost Information and Decision Making

·        Source of Financing (Debt and Equity)

·        Capital Budgeting and Cost of Capital.