At the end of this course, the participants should be able to:
- Transform financial and accounting concepts into tools that they can use in decision-making
- Preparing the operational budget and linking it to the strategic objectives of the establishment
- Apply capital budgeting techniques to enhance the decision making process
- Understand accounting and financial terms so that they can deal with them with confidence
Financial Statements
- Objectives of financial statements and reports
- Elements of financial statements
- Statement of financial position
- Income statement
- Cash flow statement
Analysis of Financial Statements
- External users of financial statements
- Internal users of financial statements
- Types of financial ratios
- Liquidity ratios.
- Leverage ratios.
- Activity ratios.
- Profitability ratios.
- Investment ratios.
Costs: Elements and Types
- Why does an enterprise need to determine the cost of products or services?
- Cost center.
- Cost elements.
- Prime cost.
- Conversion cost
- Costs and stages of production.
Break-even Point Analysis
- Cost definition
- Variable costs definition
- Fixed costs definition
- Break-even point definition
- The equation method.
- Multiple products break-even point.
- Break-even point in value
Planning, Preparation and Execution of Budgets
- Budget principles
- The enterprise environment
- Financial forecasting
- Budget definition
- The budget as a planning tool
- The budget as a control tool
- General rules of the budget
- General indicators and guidelines
- Difficulties associated with budgets
Capital Expenditures and Investment Alternatives
- Capital planning areas
- Project evaluation methods.
- Time value of money.
- Payback period.
- Future value.
- Present value.
- Net present value.
- Internal rate of return.
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