Fundamentals of Finance for the Supply Management Professional
This program addresses two of the least understood, yet most critical, departmental functions in every firm: accounting and finance. By the end of the program you will have a fundamental understanding of what they do, how they come to decisions, what is critical to each and the terminology they use. This will allow you to be able to work more easily and more effectively with them in the future. This course is a bridge to ISM's Finance for the Supply Management Professional.
Please bring a laptop computer to this seminar.
- What IS finance
- The three pillars of corporate finance
- Why you need to know this
- Budgets — five different approaches
- Leasing as an option
- What IS accounting
- The universal principles of accounting
- The three financial statements
- How they are different
- How they link together to tell the story
- What is accounting — the universal principles: Going concern; Cost concept; Cash vs. accrual; Consistency; Conservatism; Materiality
- The three financial statements: Balance sheet; Income statement; Cash flow statement
- How they are different — the purpose of each: Balance Sheet; Income Statement; Cash Flow Statement
- How they link together to tell the story: Income statement to the cash flow statement; Cash flow statement to the balance sheet; Balance sheet to the income statement; Non Cash Deductions: Depreciation vs. Amortization vs. Depletion
- What IS finance?; Three pillars of corporate finance: Working capital; Capital structure; Capital budgeting; What are the major sources of Long-term and Short-term finance?
- Why you need to know this: Operating Cycle vs. Cash Cycle; Working capital management; Credit policy; Collection procedures; Aging
- Budgets — five different approaches: Traditional; Flexible; Zero-based; Activity-based; Rolling; Cash
- Leasing as an option: Operating leases; Capital leases
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