Cash Flow and Treasury Management

Objective

This course is designed to provide information about an entity’s investing and financing activities during the accounting period, as well as show how much cash was generated by the period’s operations. The course will familiarize the participants with the relevant financial information needed to make management decisions. Participants will practice using financial information in managerial decisions to understand the basic concepts of financial reporting in the profit and loss statement, balance sheet, and cash flow report. The participants are expected to understand and work more effectively with the financial managers of the organization following the completion of this course.

Benefits

The course helps the participants answer questions such as the following:

• How much cash was provided by the normal, ongoing operations of the company?
• In what other ways were significant amounts of cash raised?
• Is the company investing enough in new plants and equipment to maintain or increase capacity and to replace old facilities with more efficient ones?
• Is the company reinvesting excess cash in productive assets, or is it using the cash to retire stock?
• To what extent are the company’s investments being financed by internally generated cash and to what extent by borrowing or other external sources?
• For the cash obtained externally, what proportion was from debt and what from equity?
• Is the company having to borrow cash to maintain its cash dividend payments?

Methodology

• Lecture
• Case Study Methods.

Course Content

1. Purpose of the Cash Flow Statement

• Sources and Uses of Cash

2. The Cash Flow Statement

• Statement Categories
• Investing Activities
• Financing Activities
• Noncash Transactions
• Cash Flow from Operating Activities
• Indirect Method Calculations
• Summary of the Cash Flow Statement

3. Misconceptions About Depreciation

• Cash Flow Earnings

4. Preparation of the Cash Flow Statement

• Cash Flow Worksheet
• Worksheet Entries
• Statement Preparation
• Summary of Preparation Procedures

5. Analysis of the Cash Flow Statement

• Ratios
• Cash Flow Projections

6. Introduction to Basic Accounting

7. Financial Reports

8. Accounting Process

9. Basic Concepts and Financial Reports

• Basic Concepts
• Balance Sheet
• Income Statement
• Statement of Owners’ Equity
• Statement of Cash Flow

10. Financial Reporting Analysis

11. Business Objectives

12. Return on Investment

13. Sound Financial Position

14. Structure of Analysis

15. Investment Turnover and Profit Margin

16. Price/Earning Ratio

17. Profitability Ratios

18. Profit Margin

19. Investment Utilization Ratios

20. Investment Turnover

21. Working Capital Measures

22. Financial Condition Ratios

23. Liquidity and Solvency

24. Dividend Policy

25. Balanced Scorecard

26. Published Annual reports

27. Working Capital Management

28. Cash Flow Management

29. Account Receivable Management

30. Inventory Management

31. Fixed Asset Management

32. The Classification of Costs

33. Cost Information and Decision Making

·34. Different Costs for Different Purposes

35. The Behavior of Costs

• Relation of Costs to Volume
• Variable and Fixed Costs
• Cost Volume Diagram

36. Break-even Point Analysis

• The Profit Graph
• Break-Even Volume
• Operating Leverage
• Contribution
• Cost Information and Decision Making

37. Source of Financing (Debt and Equity)

38. Capital Budgeting and Cost of Capital.