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Financial Management for Non-Accountants: Making Informed Decisions

Author/Moderator: Neil Wilner, PhD, CPA and James McDonald, PhD
Publisher: AICPA
Availability: In Stock
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Description

(Formerly Accounting and Finance for Non-Accountants — Level III)

Complete your understanding of the “business side” of things! This course introduces non-accountants (and accountants who want a managerial finance refresher) to the managerial finance concepts, tools and techniques needed to perform basic functions critical to effective decision making and control within the organization. It’s also ideal for higher level, non-degreed accounting staff who need a better insight into some of the financial aspects of managing the company. Topics include understanding the time value of money, calculating the firm’s weighted average cost of debt and equity capital, analyzing capital budgeting alternatives and identifying relevant cash flows, preparing long-term financial plans and pro forma financial statements and recognizing ways to sustain long-term organizational growth and profitability. This course is the third in a three-part series.

Objectives:
  • Calculate cost of capital
  • Evaluate capital budgeting alternatives
  • Increase market and economic value of the firm
  • Prepare financial forecasts
Prerequisite:

Understanding Financial Statements for Non-Accountants and Managerial Accounting for Non-Accountants: Concepts, Tools and Techniques (or equivalent financial and managerial accounting knowledge).

Table of Contents

  • Chapter 1 - Time Value of Money
    • Learning Objectives
    • Introduction
    • Future Value
    • Present Value
    • Discussing the Time Value of Money Concepts Further
      • End-of-Year Cash Flows
      • Beginning-of-Year Cash Flows
      • Other Time Value of Money Issues
    • Examples and Sample Problems
      • Time Value of Money Examples
      • Time Value of Money Sample Problems
      • Solutions to Value of Money Problems
  • Chapter 2 - The Cost of Capital
    • Learning Objectives
    • Introduction
    • The Components of the Cost of Capital
      • Further Issues
    • Component Costs of Equity Financing
      • Preferred Stock
      • Common Stock (External Equity) Assuming No Growth
      • Common Stock (External Equity) Assuming Growth = g
      • Retained Earnings (Internal Equity)
  • Chapter 3 - The Capital Budgeting Process
    • Learning Objectives
    • Introduction
    • The Process
    • Common Example Company
      • Payback Model
      • The Accounting Rate of Return Model
      • Net Present Value Model
      • Internal Rate of Return Model
    • Typical Cash Flows and Tax Effects
      • Tax Effects
      • Typical Cash Flows
    • Tax Company
      • Payback Model
      • The Accounting Rate of Return Model
      • Net Present Value Model
      • Internal Rate of Return Model
    • The Make-or-Buy Decision
    • Lease Financing
      • Definitions
      • Types
      • Forms of Lease Financing
      • Accounting Treatment of Leases
      • Lease vs. Borrow
      • Other Considerations in the Lease vs. Buy Decision
      • Analysis of an Asset Which Can Only Be Leased
    • Comprehensive Capital Budgeting
      • Calculation of Initial Outlay for the Comprehensive Example
      • Calculation of Differential Cash Flow for the Comprehensive Example
      • Cash Flow Diagram for the Comprehensive Example
      • Calculate Internal Rate of Return
      • New Data for the Payback Period with Unequal Cash Flows
      • Three IRR Investment Proposal Examples
    • Illustrative Problem
      • Illustrative Problem's Solution
    • Chapter 4 - Market Value Added (MVA) and Economic Value Added (EVA)
      • Learning Objectives
      • Introduction
      • Market Value Added
      • Economic Value Added
      • Relationship of EVA and MVA
    • Chapter 5 - Forecasting and Financial Planning
      • Learning Objectives
      • Introduction
      • Specific Steps of a Financial Plan
        • Key Planning Questions
        • Benefits of Financial Planning
        • Costs of Financial Planning
      • Budgets vs. Forecasted Financial Statements
        • Budgets
        • Forecasted Financial Statements
      • Financial Planning Prerequisites
      • The Basic Forecasting Model
        • Percent of Sales Method
      • Explanation of the Basic Model
      • The Basic Model - An Example
      • The Basic Model - Sensitivity Analysis
        • Example
      • Illustrative Problem 1
        • Required
        • Illustrative Problem 1 - Worksheet
        • Illustrative Problem 1 - Solution
      • Forecasting the Balance Sheet Using the Percent of Sales Method
      • Methods of Financing EFN
        • External Sources
        • Internal Sources
      • Financing the EFN - An Example
        • Discussion Questions
        • Discussion Questions
      • Problems and Limitations Associated with the Basic Model
      • Illustrative Problem 2
        • Required
        • Illustrative Problem 2 - Worksheet
        • Illustrative Problem 2 - Worksheet
        • Illustrative Problem 2 - Solution
      • Forecasting the Income Statement - An Example Using the Percent of Sales Method
      • Reconciliation - An Example
      • Reconciliation - A Second Example
      • Illustrative Problem 3
        • Required
        • Illustrative Problem 3 - Worksheet
        • Illustrative Problem 3 - Solution
      • Statistical Procedure - Regression
      • Using Regression - An Example
      • The Correlation Coefficient
        • Regression and Forecasting the Balance Sheet - An Example
      • Using Regression on the Income Statement
        • Forecasting Sales - Sales Goal
      • Compound Growth - An Example of Forecasting Sales
        • Scatter Plot
        • Point to Point Estimate
        • 20X10 Sales Estimate
        • Average Point to Average Point Estimate
        • Average Point to Average Point Estimate
        • 20X10 Sales Estimate
      • Fluctuating or Cyclical Sales
      • Forecasting Sales - Regression Approach
        • Example
        • Regression Equation
    • Chapter 6 - Sustainable Growth
      • Learning Objectives
      • Introduction
      • Ratios That Show When a Firm Is Growing Too Fast
        • Fixed Assets to Net Worth
        • Ways Fixed Assets Affect Profit
        • Ratios That Could be Changed by the Fixed Assets to Net Worth Ratio
        • Net Sales to Net Worth - The Trading Ratio
        • Ratios That Could be Changed by the Trading Ratio
      • Characteristics of Overtrading
      • Calculating Sustainable Growth
      • The Basic Forecasting Model
        • Percent of Sales Method
      • The Sustainable Growth Model
        • Maximum Sustainable Growth - An Example
      • Illustrative Problem
        • Required
        • Solution to Illustrative Problem
      • Sustainable Growth - Available External Equity
      • Sustainable Growth
        • Assumptions
        • Variables
        • New Sales Require New Assets and New Assets Must Be Financed
      • The Sustainable Growth Equation
      • Sustainable Growth with Inflation
        • Assumptions
        • Variables
      • The Inflation Adjusted Growth Equation
      • Managing Growth
      • Chapter 7 - Ethics Focus: Business and Industry
        • Ethics Overview
        • Interpretation 101-3
        • Key Ethical Dilemmas
        • Addressing Ethical Dilemmas
        • Available Resources
      • Chapter 8 - Latest Developments

Excerpts

Videocourse Details

NASBA Field of Study: Finance
Level: Basic
Recommended CPE Credit: 8
Important Information on Your CPE Credit
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