101 Financial Solutions: Diagnosis & Remedy (10.5 hrs)

Course Description

101 Financial Solutions: Diagnosis & Remedy (10.5 hrs)

A manager’s success depends largely on his or her ability to manage a company’s assets. This mission is complicated by the interdependent nature of a company’s finances. One short-term financial problem, such as a cash flow shortage, can cause a longer-term credit problem, such as denials for bank loans. The successful manager must be able to quickly identify and resolve such short-term problems in order to prevent their long-term deleterious effects. This course is intended for effective business managers and entrepreneurs. Covering every facet of the daily management of a business’s finances, it is designed to help managers pinpoint, remedy, and prevent business and financial problems. In each case, it also points out potential ripple effects—the ways in which a problem in one sector can disrupt operations in other areas.

Course information

Price: $109
Course No. 7002
Format: Online pdf (264 pages).
Prerequisites: Basic math
Advance Preparation: None
Level: Overview
CPE Credit: 10.5 Hrs.
Field of Study: Management Services
Course expiration:  You have one year from date of purchase to complete the course.
Course Revision Date: June 2016


After completing this course, participants should be able to:

Chapter 1 Pricing, Sales, and Advertising Miss Margins
1. Recognize signs in the concept of revenue base erosion.
2. Identify irrelevant cost factors when evaluation special orders.
3. Identify causes of a high level of merchandise returns that can affect business profits.

Chapter 2 Inventory and Production Shortfalls
1. Identify the causes of low turnover of merchandise.
2. Recognize trade-offs between excessive inventory ordering and carrying costs.
3. Identify order costs and carrying costs associated with inventory management.
4. Recognize how the economic order quantity (EOQ) applies to inventory management.
5. Identify technologies used to improve inventory tracking and management.
6. Recognize reasons that create a lack of inventory storage space.

Chapter 3 Profit Targets Are Off
1. Identify concepts used in the analysis of profitability.
2. Recognize ways to reduce the break-even point, and limitations of break-even analysis.
3. Recognize how to apply cost-volume-profit analysis.
4. Identify the problems of a weak sales mix and the causes of falling sales or profits.

Chapter 4 Risk-Return Unbalance
1. Identify the risk-return trade-off.
2. Recognize components of interest rate risk.
3. Identify factors relating to a lack of diversification and increased risk.
4. Recognize signs of existing or potential financial problems.

Chapter 5 Inability to Finance Weakens Business Development
1. Recognize influences that can adversely affect the market price of a stock.
2. Identify the objectives of debt rating services and some bond terminology.
3. Recognize characteristics of evaluating stock prices.

Chapter 6 Business Control Threatened
1. Identify the conditions when bankruptcy looms.
2. Recognize steps management can take to avoid business failure.
3. Recognize uses of the Altman Z-Score for spotting risky companies.
4. Identify measures that a company can take to avoid a takeover threat.

Chapter 7 Cash Flow Disturbances
1. Recognize common ratios used by companies to help manage cash positions.
2. Identify ways to improve cash flow and return on surplus funds.
3. Identify early warning signs of a company going broke.

Chapter 8 Mess in Accounts Payable and Receivable
1. Identify ways to minimize the impact of vendor’s price increases.
2. Calculate the advantage of accepting vendor terms and discounts.
3. Recognize the reasons for poor credit ratings.
4. Identify methods to prevent check signing fraud and improper payments.

Chapter 9 Lackluster Financial Statements
1. Recognize commonly used financial ratios that help spot liquidity problems.
2. Identify early warning signals for inadequate liquidity.
3. Recognize ways to improve return on investment and how return on equity is calculated.
4. Identify methods to identify a low rate of return and the signs for poor quality of earnings.

Chapter 10 Costs Out Of Control
1. Recognize how to determine the stability/instability in product revenue over time.
2. Identify the causes for excessive labor costs.
3. Recognize the concept associated with operating leverage.
4. Recognize the applications of activity-based costing.
5. Understand how a profit-maximizing firm would adjust prices at different levels of demand.

Chapter 11 Budgeting and Cost Control Problems
1. Identify how actual costs can exceed standard (budgeted) costs.
2. Recognize how to compute an efficiency variance.

Chapter 12 Fragile Internal Controls
1. Recognize ways to spot record-keeping errors.

Chapter 13 Tax Planning and Preparation
1. Recognize the characteristics of different corporate structures used to affect tax planning and preparation.