8/17/2019 (J inentaiinaive come @ BA 2103 + Summarize the features and functions of a franca management Financial Management + Review the basic financial statements + Explain the relationship ofthe components of financial statements Cour mn + we ar affected by globalization and the borderless economy (3s) © “her nie e=neMAMEN NE ag ga Gg scwcd cnt elnavery SSN ERE ty owe net say -ectapoma ces geet leroy ited avaible resources ¢ 9 canitmatempetinann FE ee a (Ger Financial Management, described Financial Management, described Finance the rt nd science ol mania Accounting rroney Sometimes aswencse +e eld of Finances close related e onsldred the mana, ‘conomies and accountng ) language of therefore, must Economics povdesa structure for decsion @) SF | > a understand natrginbemstrokanssitase” — @ @) Le both economics Brovides broad picture ofthe economic through franca and accounting ‘nironment that affects the business Seam tat8/17/2019 Financial Management, described + Financial Management refers to capital procurement nds allocation, eaptl restructuring, and pratt administration ‘hich imolves financial planning, analysis of financial ‘ondition and supervision of financial operations Financial Management, described + Financial Mi ‘endeavors to make optimal investment, ‘financing, and dildend)/share repurchase decisions, @ e © ono “It concers the duties ofthe nancial manager in the business enterprise Scope of Financial Management + nancial Management covers working capital ‘management ofthe frm, investment porflio ‘nals, capital investment analysis, and capital structure + defines the job of the nancial manager & A ‘Scope of Financial Management + the financial manager actively handles the ancl affars of ‘the business frm + among other things tak involves “financial planning and forecasting + making investment and flaancing ‘ecisions| isk management ‘Scope of Financial Management + goal of financial management is ‘more than just profit maximization; Iie valve maximisation — ‘maximizing sharenolder wealth The Finance Function + the sie and importance of te finance function ‘depend on thesize ofthe frm ae “in smaller firms, the fnance function is generally performed bythe accounting unit ‘Yor bgger firms, there i need for separate unit to handle ‘the task + large corporations usually havea chief financial officer (CFO) ‘to whom the treasurer and the controler report,8/17/2019 The Finance Function + also known asthe Chie Financial Manager isthe one Tesponsible forthe firm's ancl activities including ancl planning, raising funds, making capital budgeting decisions, land managing the firm's working capital ‘The Finance Function ontrater + aso called the Chief Accountant, Isin-charge ofthe fms ‘accounting activities such 2s corporate accounting, tax ‘management, ancil accounting, ard cos accounting The Finance Function + the functions of finance involve tie major decisions oa ‘companies make investment decision ‘financing decision + lvidend decision Investments in capital projects should provide ‘expected retursin excess of what financial markets require The Finance Function Decision Description ‘Financing Determination ofthe bet capital structure Dedsion Capital structure voles determining he best be of debt, equity, and yb secrtiesto mloy "Ailocation of cash to be distributed to shareholders. = Excees cash can be distributed to stockholders direct through dividends8/17/2019 The Finance Function Financial Statements + Statement of Financial Position ($F) = assets, lables, owner's equity + Statement of Comprehensive Income (Si) revenues, costs and expenses, rof/ioss le Financial Statements + Statement of Changes in Owner's Equity (SCE) + Statement of Cash Flows (SCP) operating activities investing activities ~fiancing activities + Accounting Policies and Explanatory Notes Relationships among Financial Statements *scireportsllicame and expenses ‘uring the pero 7 ithe nal = = furein the Sc Pa “SCE considers the PL gure from ae ‘he as one ofthe determining ‘actorstnat explainsthechangein rae eS Relationships among Financial Statements + SP reports the ending OF, taken irety fom SCE “SCF reportsnet increases and ‘decreases in cash during the period ==] ‘and ends with cash balance F = reported in the SFP; this statement Isprepared based on both SC\ and se “8/17/2019 Reporting Assignment ‘Check rubric and topic contents + Print one copy of presentation mate forthe course facttator submit on date of presentation) “Email soft copy of presentation material wthin one week from date of presentation Reporting Assignment Choose your teammates and your topic Schedule ‘August 24 ~ Library Work ‘Alugust 31 - CBA Graduate School Orientation