Fundamentals of Finance and Accounting for Non-Financial Managers

Learning Objectives

• Discuss the Relationship Between the Information Presented on Basic Financial Statements.
• Read and Interpret Basic Financial Statements.
• Understand How to Evaluate a Company’s Financial Health Based Upon the Information Presented in its Annual Report and 10-K Report.
• Calculate Key Financial Ratios to Analyze a Company’s Financial Position And Management Performance.
• Identify Other Sources of Financial Information.
• Improve Their Company’s Profitability Through an Understanding of Cost and Break-Even Points.
• Compare the Rate of Return for Various Investments and Determine Which Are Good Uses of the Firm’s Assets

Basic Accounting

• Discuss the Importance of the Accounting Equation
• Explain the Significance of Generally Accepted Accounting Principles (GAAP)
• Describe the Accrual Process
• Differentiate Between Accounting Profit and Cash Flow

How Accounting Works and Understanding Financial Statements

• Describe an Income Statement or Profit and Loss Statement (P&L).
• Discuss a Balance Sheet and its use.
• Identify a Statement of Retained Earnings
• Describe a Cash Flow Statement.
• Prepare a Simple set of Financial Statements.
• Summarize the Accounting Process, from the Recording of Business Transactions to the Preparation of Financial Statements.
• Share How Various Business Transactions Affect the Financial Statements.

Reviewing an Annual Report

• Identify the Components of an Annual Report
• Explain the Importance of Notes in Evaluating Financial Statements
• Describe an External Auditor’s Role and the Significance of the Opinion Letter

Evaluating a Company’s Financial Statements

• Calculate the Key Financial Ratios Using the Financial Statements
• Use Financial Ratios to Evaluate an Organization’s Liquidity, Leverage and Profitability; The Performance of an Organization as Compared to Its Competitors; and An Organization’s Performance Compared with Budgeted Goals
• Identify Sources of Financial Information Beyond the Financial Statements
• Use the DuPont Formula to Evaluate Management Performance
• Use the Concept of Economic Value Added (EVA®) and Cash Flow Return on Investment (CFROI) to Determine if a Segment of an Organization is Adding Value to the Business

Improving Profitability Through Cost Analysis and Profit Planning

• Differentiate Between Fixed and Variable Costs
• Help Your Organization Improve Profitability Through the Use of Breakeven Analysis, Contribution Margin Analysis, and Direct Costing in Appropriate Situations
• Explain Traditional Cost Accounting and Its Limitations
• Discuss the Relevance of Activity-Based Costing in Today’s Business Environment

Making Major Financial Decisions with Capital Expenditure Analysis

• Define the Capital Budget
• Explain Why Cash Has a Time Value
• Recognize and Apply Different Methods of Evaluating Capital Expenditures and Monitoring Project Performance

Budgeting More Effectively

• Discuss the Role of Budgeting and Issues That Budgets Can Solve
• Describe the Budgeting Process
• Identify Different Types of Budgeting Systems in Use Today
• Analyze Budgets for Different Purposes
• Recognize and Apply Different Methods of Evaluating and Monitoring Operating Performance

Course Highlights

• Review Program Summary and Expectations
• Determine the Actions That You Will Take When Returning to Work Based on What You Have learned in the Program
• Generate a List of Questions to Take with You and Further Your Learning