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.