• Understand financial management and accounting concepts.
• Analyze financial statements, including income statement and balance sheet.
• Generate funds flow, working capital, and cash flow.
• Evaluate financial management techniques for break-even analysis, operating leverage, financial leverage, capital budgeting, liquidity, activity ratios, profitability, and others.
• Understand financial measures of business performance.

• Cash cycle of the firm.
• Reporting the results; the four financial statements.

Overview of Project Management Tools and Techniques

• The planning cycle.
• Arriving at the baseline budget.
• Controlling the project.

Principles of Activity-Based Cost Accounting

• Three sets of accounting books.
• Generally Accepted Accounting Practices (GAAP).
• Revenue/Expense concepts.
• Asset valuation.
• Accounting transaction analysis.
• Accounting in an inflationary economy.
  
  WORKSHOP:
  Participants will determine the effect on assets, liabilities, and owner's equity of a set of transactions based on a company's financial statements.

• The income statement.
• The balance sheet.

  WORKSHOP:
  Participants will complete common size analysis, percent change analysis, and calculate key income statement ratios for an example company.

  • Understanding changes in owner's equity and financial position; cash flows and working capital.
  • Measurements of business performance; ratio analysis, ROI, ROTC, ROA, ROE, market-to-book, profitability and liquidity ratios.
  • Strategic financial analysis.

WORKSHOP:
Participants will analyze and make specific recommendations on target capital structure and expenditure, ROTC, and acquisition and dividend policies of an example company.

Operational Planning and Break-Even Analysis

• Break-even analysis.
• Determinants of financial performance; operating and financial leverage.
• Strategic planning; goals, objectives, strategy, and product/project life cycle.
• Project financing.

  WORKSHOP:
  Participants will evaluate different methods to finance a project based on case study readings.

• Relationship between time and money; future value (compounding) and present value (discounting).
• Factors affecting the discount rate.

Budgeting and Controlling

• The capital budgeting process; generate proposals, estimate cash flow, rates of return and net present values.

  WORKSHOP: Investment decisions for a new project

• Project budgeting and management control; the budgeting process, forecasting, management controls, MBO and ZBB, contingency.

  WORKSHOP: Strategic Planning for Diversified Business Operations; The Norton Company, Harvard Business School.

Asset Management

• Inventory; FIFO, weighted average, LIFO.
• Fixed assets and depreciation; Class Examples.

  WORKSHOP: Inventory decision making, Industrial Grinders N.V., Harvard Business School.