Financial Management for Non-Financial Managers

*Course can be taken individually, or as a part of the Management and Leadership Certificate of Business Excellence.

COURSE DESCRIPTION
This one-day module covers the basic concepts of financial accounting and management that are essential for the efficient operation of any business. The day is split between morning and afternoon modules. The morning module covers basic financial accounting topics and the afternoon module builds on these to cover financial management skills.

COURSE COST
$1,420

INSTRUCTOR
Michael Newman, Ph.D., CPA, CFE, CIA, CMA

I was born in Canada and raised in South America (Bolivia, Chile, Peru) and Central America (Trinidad & Tobago) by American parents. My father was a geophysicist. I started my first company at age 18 and took it regional before selling it a year later. I helped with another start-up right after my 20th birthday. We took it National and sold it by the time I was 30. Shortly after that (1986) I became involved in not-for-profits that worked with youth and later, abused youth.

I embarked on my current career in 2002. I find that being a professor, teacher and researcher is an extraordinarily rewarding experience! I look forward to spending the rest of my life in my new vocation/avocation!

All in all, I am truly blessed given my wonderful position at UH and the fact I am married to a wonderful woman, Peggy, who continues to love me after 34 years together, and to have 2 great daughters and 4 beautiful and smart granddaughters in my life, all of whom I love and who love me! :)

COURSE SCHEDULE

Morning Module (8 a.m. – Noon)

Creation of Financial Statements

• Double-bookkeeping, accrual accounting and general journal entries
• The process of recording journal entries (ledgers, unadjusted trial balance, adjusting entries, adjusted trial balance, closing entries, and the trial balance)
• How to prepare the financial statements

Using and Interpreting Financial Statements

• Why ratios (horizontal, vertical, common size) are important
• Ratios used (liquidity, profitability, solvency, activity) and what they mean/are used for (efficiency evaluation and credit and investment decisions)
• Review of a company on Yahoo!Finance
• Return on Investment, EBITDA, Total Shareholders Return, Residual Income, EVA and the Balanced Scorecard

Cost Accounting

• Responsibility Centers, Responsibility Accounting, and Decentralized organizations
• Use of Contribution Margins and Variable Costing in evaluating profitability of a sale/sales
• Cost-Volume-Profit Analysis and decisions

 

Afternoon Module (1 – 5 p.m.)

Investments and Discounting

• Time value of money
• Risk and portfolio diversification
• Beta and systematic risk

Valuation

• Valuation of bonds and yield-to-maturity
• Valuation of common stocks

Capital Budgeting and Project Evaluation

• Financial statements and cash flows
• Net present value (NPV) rule
• Internal rate of return (IRR)
• Payback period
• Why is NPV superior?