Fin370 Week Two Student Guide

Week Two Student Guide

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During Week One of this course, you were introduced to basic financial terminology and identified the role these terms have in a business finance setting.

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This week focuses on making the best possible operating decisions for a company by looking at the numbers. The emphasis is on the products or services of the business from a manager’s perspective. You plan and measure results against the plan, and you adjust the plan based on what you learn to improve future performance.

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Financial Planning

OBJECTIVE: Describe the relationship between strategic planning and financial planning.

Resources: Ch. 17 of Financial Management and Ch. 23 of Basic Finance

* Ch. 17: “Financial Forecasting and Planning” of Financial Management

* An Overview of Financial Planning

* Developing a Long-Term Financial Plan

* Financial Forecasting Example: Ziegan, Inc.

* The Business of Life: Your Personal Budget

* Developing a Short-Term Financial Plan

* Example Cash Budget: Melco Furniture, Inc.

* Uses of the Cash Budget

* Ch. 23: “Forecasting” of Basic Finance

* Planning

* Fluctuations in Asset Requirements

* Forecasting External Financial Requirements: Percent of Sales

* The Percent of Sales Summarized as an Equation

* Forecasting External Financial Requirements: Regression Analysis

* Forecasting External Financial Requirements: Changes in Fixed Assets

* Summary

OBJECTIVE: Prepare a cash budget.

Resource: Ch. 17 of Financial Management

* Ch. 17: “Financial Forecasting and Planning” of Financial Management

* An Overview of Financial Planning

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