DAY ONE

FINANCIAL STATEMENTS AND FINANCIAL STATEMENT ANALYSIS

The Balance Sheet and its Components

• Defining the Balance Sheet

• Assets

• Liabilities

• Equity

• Current versus Non-Current Assets and Liabilities

• The Balance Sheet Illustrated

Income Statements

• Defining the Income Statement

• Defining Revenue and its Recognition

• Defining Expenditures and their Classifications

• Calculating Profit

• Gross Profit

• Operating Profit

• Net Profit

• The Income Statement Illustrated

Cash Flow Statement

• Defining the Statement of Cash Flows

• Cash and Cash Equivalents

• Classification of Cash Flows - Operating Activities - Investing Activities - Financing Activities

• The Cash Flow Statement Illustrated

Net Equity

• What is Capital Stock?

• Dividends are not an Expense!

• Cash Dividends, Stock Dividends and Stock Split

• Definition of Treasury Stock

• Retained Earnings: Not the Same as Cash

Financial Statement Analysis

• Over view of the ratio analysis.

• Definition and calculation of financial ratios.

• Common size financial statements.

• Internal liquidity ratios.

• Operating performance ratios.

• Solvency ratios

• Profitability ratios

• Market ratios

• Interpretation of financial ratios to provide basis of decision making for top management.

• Limitations of financial ratios analysis

• Case Study

DAY TWO

SESSION 1: The Budgeting Process

• Definition of Budget

• Functions and Roles of Budgeting

• Budget Manual

• Participative Budgeting and Management by Objectives MBO

• Standard Costing; types, development

• Budget Preparation Methods; project budget, ABC Budget, ZBB, Incremental Budget, Continuous budget

• Budget Types; Static and Flexible Budgets

SESSION 2: Selecting profitable investments

• Defining the PV & FV.
• Determining the capital budgeting evaluation techniques, advantages of each and its drawbacks:
  1. Payback period
  2. Bailout payback
  3. Discounted payback period
  4. Net present value.
  5. Internal rate of return
  6. Profitability index

SESSION 3: Pricing strategies

• Pricing’s part in the marketing mix

• Cost plus or mark up

• Price taking

• Penetration

• Skimming

• Bundling and segmentation

DAY THREE