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This course provides a basic and practical understanding of how to prepare a financial plan (budgeted financial statements), which is the core part of a business plan. Financial planning is a continuous process of directing and allocating financial resources to meet strategic goals and objectives. The output from financial planning takes the form of Budgeted Financial Statements, such as: ¿ Budgeted Income Statement (Profit and Loss Budget) ¿ Net Working Capital Budget ¿ Long term Sources and Uses of Funds ¿ Cash-Flow Statement ¿ Budgeted Balance Sheet After this course students should be able to complete the fore mentioned Budgeted Financial Statements but also to conduct a complementary analysis such the Ratio Analysis and Scenario Analysis by using the financial planning outputs, to consider the combined effects of the firm¿s investment and financing decisions and to anticipate events that could upset the firm in order to design corrective measures.

Class 1: Presentation and general overview of the course. Theoretical introduction to the financial planning process as a management tool for decision making. A short placement test is conducted in order to test the audience background (optional). The first Case study is also discussed, and it will be solved by using Excel spreadsheet in order to introduce the digitalization into the financial planning process as well as gaining flexibility for making financial decisions. Date: Time: 3 hours. Readings: References, teacher¿s slides and Bookkeeping on-line tutorial to refresh accounting terms (if necessary). Cases/Exercises: Case study I is introduced and it will be solved by using Excel spreadsheet (3 hours). The main aim of this first and basic case study is to focus on the estimation on Self-financing and Need of Net Working Capital (NNWC). By using the spreadsheet, students have to design two budgets: ¿ Budgeted Income Statement ¿ Net Working Capital Statement Class 2: We will go on solving the case study I, focusing on the capital budget, which is the core part of the financial planning process. It provides us with the information about whether a certain project is feasible or not by looking at the cumulative surplus or deficit for the temporary window selected. Discussion is promoted about rejecting, revising or smoothing the final amount by introducing the Scenario Analysis. The Cash Flow statement is also completed as a useful tool for back-testing the financial planning process. Date: Time: 3 hours. Readings: References, teacher¿s slides and Bookkeeping on-line tutorial to refresh accounting terms (if necessary). Cases/Exercises: Our first Case Study is still used to fill in: ¿ Long Term Sources and Uses of Funds (Capital Budget), but also the ¿ Cash-Flow Statement ¿ Budgeted Balance Sheet ¿ Ratio Analysis and Scenario Analysis Class 3: We will start solving the Case study II, which introduces more complexity. Date: Time: 3 hours. Readings: References, teacher¿s Slides and Bookkeeping on-line tutorial to refresh accounting terms (if necessary). Cases/Exercises: Our second Case Study introduces more complexity to the financial planning process. The capital strategy (about long term investments and financial resources), short term policies (about current assets and liabilities) and financial strategy (on pay-out policy, depreciation policy and growth policy) provides with a lot of items (disinvestments, capital increase, grace periods in the financial amortization schedules, etc.) to deal with along the financial planning process. This case study should be solved in groups by two or three people and the final results should be presented in a report summary. Class 4: We will go on solving the case study II, focusing on the capital budget, which is the core part of the financial planning process. It provides us with the information about whether a certain project is feasible or not by looking at the cumulative surplus or deficit for the temporary window selected. Discussion is promoted about rejecting, revising or smoothing the final amount by introducing the Scenario Analysis. The Cash Flow statement is also completed as a useful tool for back-testing the financial planning process. Date: Time: 3 hours. Readings: References, teacher¿s Slides and Bookkeeping on-line tutorial to refresh accounting terms (if necessary). Cases/Exercises: Our second Case Study will be finished. Class 5: On the basis of case study II, complementary analysis is conducted based on the budgeted Balance sheet by applying ratio analysis and financial charts. Date: Time: 3 hours. Readings: References, teacher¿s Slides and Bookkeeping on-line tutorial to refresh accounting terms (if necessary). Cases/Exercises: Complementary analysis on Case Study II will be finished. Some financial charts will be drawn such as the cash flow distribution, capital budget profile, etc.

LEARNING ACTIVITIES Placement test Case study I and II Mock exam (after case study I) Activities proposed for autonomous work Active participation and attendance Final exam TEACHING METHODOLOGIES Exhibitions in the teacher's class with support of computer and audiovisual media, in which the main concepts of the subject are developed and the bibliography is provided to complement the students' learning. Critical reading of texts recommended by the teacher: press articles, economic reports, textbooks and academic articles, either for further discussion in class, or to expand and consolidate the knowledge of the subject. Specifically, the topic of corporate sustainability, in general, and budgetary sustainability, in particular, will be addressed. Solution of practical cases, problems, etc., proposed by the teacher. Exhibition and discussion in class, under the teacher's moderation of topics related to the content of the subject, as well as case studies. Preparation of papers and reports individually or in groups.