SCHEDULE FOR FIN 3104-3 - CREDIT MANAGEMENT & COLLECTION POLICIES

Date: Topics:

September 12 The Emergence and Challenge of the

Credit Economy

September 19
Sources of Credit: Nature and facilities

September 26 &
October 3
Credit Instruments: Definition, Classes
and Kinds

September 26 &
October 3
Credit Management

October 24 & 31 Credit Application, Interview and

Investigation

November 7 & 14 Inspection and Appraisal

Midterm Examination

a. Transition from Barter Economy to Credit

Economy
b. Credit: Its Birth; Uses; Kinds and Classes,
Advantages and Disadvantages;
Impact on Debtor and Creditor, Foundations

A. Main Sources of Credit: Financial Institutions

B. Other Sources of Credit: Non-Financial Institutions

a. Credit Instruments with General Acceptability

b. Credit Instruments with Limited Acceptability
i. Investment Credit Instruments
ii. Commercial Credit Instruments
c. Negotiable Instruments Law: Negotiability;
Negotiation; Indorsement

a. The Role of Credit Management

i. Credit Manager
ii. Credit Policy
iii. Organization and Functions of the Credit Department
b. The Nature and Cost of
 Credit
i. Effect of Credit on Profits and Liquidity
ii. Bad Debts
c. Offsetting Risks and Reducing Losses

a. Credit Application and Other Requirements

b. Credit Interview
c. Credit Qualities to Investigate
d. Credit Investigation Procedure and Reports

a. Nature, Purpose and Objective

b. Types of Properties
c. Guidelines in Conducting Actual Appraisal
d. Valuation Approaches

SCHEDULE FOR FIN 3106-3 - FINANCIAL ANALYSIS AND REPORTING

Date: Topics:

Learning Objectives:
September 12 Module 1: The distinct features of
Differentiate the features of the types of business in terms
the types of business
of
A. Capitalization & Investment
1. Manufacturing B. Current Assets
2. Wholesaling C. Noncurrent/ fix assets
3. Retailing D. Liquidity
4. Services E. Inventories / Accounts
5. Hybrid F. Receivables
G. Profit Margins

Learning Objectives:
Module 2: Review of Financial
Statements
Discuss the characteristics of each type of financial
statement
1. Statement of Financial
a) Define each account titles in the financial
Position
statement
2. Comprehensive Statement of
b) Describe the financial statements in terms of:
Income and Expenses
 Arrangements
3. Cash Flow Statement
4. Owner’s/Stockholder’s Equity  Most Liquid to Non-Liquid Assets
Statement  Most Current to Non-Current
 Revenue/Sales to Net Profit
 Activities & Implications: Operating, Investing
 Financing
c) Discuss updates on IFRS on treatment of
certain accounts.

Module 3: Fundamental Concepts of Learning Objectives:

Financial Statement Analysis
Enumerate the uses of financial analysis, common danger
1. Use Of Financial Analysis signal and discuss fundamental concepts in financial
2. The Common Danger statement analysis.
Signals
3. Fundamental Concepts In
Financial Statement Analysis

Module 4: Computations, expressions,

interpretations, and analysis:
Learning Objectives:

I. Computations
1. Ratios & Expression (Felix
book
- Liquidity Ratios
- Profitability Ratios
- Solvency Ratios
2. Percentages and Averages
& Expression
3. Turnover Ratios for
Efficiency & Expression
- Turnover Ratios
Measuring
Profitability
 Turn Ratios
Measuring Liquidity
II. The threshold ratios, cut-offs and
standards(Calling a spade a spade)-
The Favorable or Unfavorable Ratios
a) Liquidity Ratios,
b) Profitability Ratios
c) Selected efficiency Ratios
- Compute using the ratios, percentages, averages,
turnovers.
- Define expression on rations. rates, and turnovers
- Derive percentages on common sizes
- Interpret each ratio based on the threshold or cut-offs
and standard
-Analyze vertically the financial information in terms of
liquidity, profitability. Stability, management efficiency.
-Analyze and evaluate ratios by tracing the sources why a
ratio. is either favorable or unfavorable
- Interpret the FS using the common sizes.
- Conduct leverage analysis
Note: Strictly All Financial Statements to be used must
be
1. Audited Financial Statements,
2. Standalone, not Consolidated (ie., parent and
subsidiaries combined)
3. No Banks and Insurance Companies

III. Ratio Analysis & Evaluation

a. Comparing with Threshold
Ratios
(Cut-offs and Standards
Calling a
Spade a Spade)
b. Comparing with Industry
Ratios
c. Tracing the root cause for
Favorable and Unfavorable
Ratios
d. Confirming Findings on
Ratios with Other Ratios
IV. The Common Sizing
V. Calculating Growth Potentials
VI. Computing for the Leverage
Analysis
a. Financial Leverage
b. Operating Leverage
c. Combined
d. Casurao’s Leverage
Turnover Analysis
Module 5: Vertical Analysis Learning Objectives:
A. Common Sizes  Conduct vertical analysis in terms of:
B. Ratio Analysis - Liquidity
1. Liquidity - Profitability
a. Liquidity Ratio - Efficiency
b. Cashflow Ratio - Growth Potential
Analysis - Leverage Analysis
2. Profitability
3. Stability
a. The use of
Leverage
b. Solvency
4. Activity/Efficiency
5. Growth Potential
6. Leverage Analysis
FIN 3105-3 - FINANCIAL MANAGEMENT

Introduction to Financial Management II

A. Basic concepts on working capital management
B. Significance of working capital management
Week 2 C. Overview of Capital Structure and Effect of Leveraging.
(Sept 10)

Working capital investment

A. Working capital policy
Week 3
B. Factors affecting the level of current assets
Sept 17
D. Advantages and disadvantages of inadequate and excessive
working capital
E. Alternative current asset investment and financing policies

Cash Management
A. Reason for holding cash
B. Determining the target cash balance
C. Investing the idle cash

Cash Conversion Cycle

A. Calculating the cash conversion cycle
Week 4&5 B. Funding requirements of cash conversion cycle
Sept 24 & Oct 1 C. Strategies for managing the cash conversion cycle

Management Receipts and Disbursements Through

A. Float
B. Speeding up collections
C. Slowing down payments
D. Cash concentration
E. Zero-balance accounts

Management Receivables
A. Terms of sale
B. Credit risk and information
Week 6 C. Credit policy
Oct 8 D. Credit analysis
E. Collection policy

Management Inventories
A. Economic order quantity
Week 7&8
B. Safety stock and stockouts
Oct 15
JIT inventory management
 MIDTERM

FIN 3107-3 - INTERNATIONAL FINANCE

Module 1 Overview of International
Financial Management

WEEK 1  State the goals of the MNCs

I. Overview of International Financial
Environment
 Define the theories of International
1. Goal of the Multinational Business
Companies (MNCs)

 Enumerate the International

2. Theories of International Business

3. International Business Methods  Business Methods

Module 2 International Flow of Funds

II. International Flow of Funds

 Identify the components of
WEEK 2&3 Balance of Payments
1. Balance of Payment: Current
Account and Capital Account
 Illustrate and Analyze what
2. Factors Affecting the Current compose the accounts in
Account Balanceof Payment

3. Correcting a Balance of Trade  Enumerate Factors Affecting the

Deficit Currentand Capital Accounts, and
the agencies the promote
international Trade
4. Factors Affecting the Capital
Account
 Apply the concepts learned to the
5. Agencies that Promote case
International Flows

Module 3 International Financial Markets

III. International Financial Markets

WEEK 4

1. Foreign Exchange Market  Identify and explain each of the

international markets, their nature,
how they operate
2. Eurocurrency Market

3. Euro credit Market  Distinguish each type of financial

markets from the other
 4. Eurobond Market  Enumerate their uses in the
business and in investments
5. International Stock Markets
 Apply the concepts learned to the
6. F. Use of International case

7. Financial Markets

Modul 4 Exchange Rate Determination

IV.Exchange Rate Determination

1. Measuring Exchange Rate  Identify and distinguish from

WEEK 5&6 Movements eachother the Currency Futures
and Options
2. Exchange Rate Equilibrium
 Enumerate their uses
3. Factors that Influence Exchange
Rate Movements:  Apply the concepts learned to the
− Relative Inflation Rates
case
−Relative Interest Rates,
−Relative Government Controls,
−Expectations,
4. Interaction of Factors,
5. How Factors have
Influenced Exchange
Rate Movements
6. Speculating on
Anticipated Exchange Rates

MIDTERM EXAMINATION