Working Capital and Cash Flow Management

What is Working Capital? Working capital is a portion of the firms’ capital continuously converted to cash fund, from its inventories, to account receivables to cash. Examples of working Capital are: Firm’s safe Cash Checks for encashment Bank account balances Marketable securities Notes and accounts receivables Supplies Inventories Prepaid expense and deferred items Importance ofContinue reading “Working Capital and Cash Flow Management”

Financial Analysis

Analysis of financial Information One important step in understanding Business Finance is the analysis of financial information. The prerequisite to this analysis is knowing and understanding available information and drawing logical conclusions. There are steps to consider, interpreting and analyzing financial information. The steps are: 1. The information must be understood by the user 2.Continue reading “Financial Analysis”

Money, banking, and interest rates

Sources of Capital Composition of Total Capital of a Business: Equity or Capital Stock Financing Borrowed Capital or Debt Financing Equity – are the financial resources provided by the owners of the business. This amount is difference between total assets and total liabilities. Examples: Initial Capital Additional Investment Retained Earnings Borrowed Capital – are thoseContinue reading “Money, banking, and interest rates”

Introduction to Financial Management

Business is an entity in which the skills, energy and enterprise of owners and partners are linked with money, its sources and investment, and its success is measured by wealth or profit the business earned. Elements to be successful in business finance function: The business entity must obtain money from the right sources and investContinue reading “Introduction to Financial Management”

Basic Finance

COURSE OUTLINE:    Time Frame  Content / Topics/ Inputs  Pedagogical Tools and Activities Week  1-2 Introduction to financial management –          Lecture Weeks 3 Money, banking and interest rates –          Lecture Weeks 4-5 –          Time value of money –          Lecture Week 6 –          Prelim examination Weeks 7-8 Understanding financial statements –          Lecture Week 9-10 cash flowContinue reading “Basic Finance”