Introduction and Accounting Basics (1Hr)

Importance of Financial Knowledge
Need and Users of Accounting
Accrual and Cash basis of accounting
Accounting Cycle
Accounting Concepts and Principles to Mind while Building Financial Statements

Financial Statements: Income Statement (P&L), Balance Sheet and Cash Flow Statement (3Hr)

Various Line Items:
The Accounting Equation (Rev-Exp=Profit)
Revenue Exps vs. Capital Exps
The Accounting Equation (A-L=E); Balance sheet Equation (Modern classification)
Exercise (Understanding P&L Statement and Balance Sheet of a Company)

How to Interpret Financial Statements: Key Financial Ratios and Analysis (3Hr)

Analysis of Financial Statements: o Key Ratios and Performace metrics (Profitability, Liquidity, Leverage, Efficiency etc) o Time Series and Cross Sectional Analysis o Common Sizing
Exercises and Analysis

Managerial Decision Making on Capital Investments (4Hr)

Capital Budgeting: Evaluating Capital Investment Projects o ARR, NPV, IRR and Payback Period Analysis o Calculation, Merits and Limitations of each
Breakeven Analysis
Decision Making Tools with Excel: o Scenario Manager o Goal Seek o Data Table (Sensitivity Analysis) o Solver Technique o Exercises and Analysis

Business Planning, Budgeting and Control (2Hr)

Preparing Budgets (Planning) o Fixed Vs. Flexible Budgets, Zero based Budgeting
Control Process o Variance analysis (Operating and Planning variances – who is responsible?)
A Guide to Better Budgets
Exercises and Analysis

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