May 02, 2024  
2014-2015 Undergraduate Academic Catalog 
    
2014-2015 Undergraduate Academic Catalog [ARCHIVED CATALOG]

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MS 356 - Business Finance

3 lecture hours 0 lab hours 3 credits
Course Description
This course introduces students to various aspects of financial management. Topics covered include a review of accounting, financial analysis and forecasting, operating and financial leverage, working capital and financing decisions, current asset management, short-term sources of financing and the time value of money. Students are required to complete a financial statement analysis term project. (prereq: MS 354 )
Course Learning Outcomes
Upon successful completion of this course, the student will be able to:
• Understand the underlying concepts of finance and how to analyze the financial statements of a company
• Understand how to use financial information to help them in decision-making
• Have a working-knowledge of cash flow statements, contribution margin, working capital management and time value of money
Prerequisites by Topic
• MS-354 Principles of Accounting
• MS-221 Microeconomics
Course Topics
• Cash flow statement - preparing a statement of cash flows, importance of the different sources of cash flow, income tax considerations
• Financial statement analysis using ratios - profitability ratios, asset utilization ratios, liquidity ratios, debt utilization ratios
• Financial forecasting - cash budgeting, pro forma financial statements
• Contribution margin and cost volume profit analysis including break even, target profit, degree of operating leverage, degree of financial leverage and degree of combined leverage
• Optimal financing patterns (matching financing to asset lives) - short-term assets and short-term financing, premanent current assets, spontaneous financing, long-term assets and long-term financing
• Working capital management - cash management, receivables management, inventory management, payables management and short-term financing
• Time value of money - future value of a single amount, present value of a single amount, future value of an annuity and present value of an annuity
Coordinator
Kenneth Mannino



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