Course 1

Day One : Sunday, 7 June 2009

The Fundamentals Of Portfolio Management
• An overview of investment strategy, capital markets and modern portfolio theory

Cash Flow Decision Information Systems
• Decision models
• Decision parameters
• Accounting Information Systems (AIS)
• Users of accounting information
• Profit and loss account
• Balance sheets

Constructing Financial Statements
• Constructing a basic set of financial statements
• Cash vs. Accrual Decision Information Systems (ADIS)
• Accounting profit vs. cash
• Matching principles
• Non-cash financial flows
• Funds flow statements
• Cash flow statements
• Case studies

Day Two : Monday, 8 June 2009

Cash-Centric Financial Statement Analysis
• Information and disclosure
• Benchmarking
• Horizontal and vertical analyses
• Case-based ratio analysis and cash-based profitability
• EBIT margins
• Cash-based efficiency and gearing ratios
• Cash flow to interest expense
• Cash flow coverage of fixed financial cost coverage
• Cash flow to long term debt
• Liquidity, solvency and financial adaptability
• Current and quick ratios
• Acid test
• Cash ratio
• Working capital to sales ratio
• Profit quality
• EBITDA
• Cash based interest cover

Corporate Radar And Early Warning Systems
• Cash monitoring systems
• Cash checklist
• Expenses checklist
• Accounts receivable checklist
• Marketing and logistic monitoring systems
• Turnaround time and backlog
• Graphical representations
• Altman Z-Score and other distress models
• Cash-based corporate collapse
• Case study

Day Three : Tuesday, 9 June 2009

Developing Cash Budgets
• Evolutionary budgeting
• The role of cash budgeting
• The control framework
• Budgetary cycles
• Master profit plan
• Sales and expenses budgets
• Cash flow derivation
• Deriving cash flow
• Cash from customers
• Cash paid to suppliers
• Payment and collections management
• Cash budgeting
• Operating and non-operating cash flows
• Investing and financing activities
• Borrowings and interest issues
• Methods of budget preparation
• Functional cash budgeting
• Master cash budgets
• Putting a full cash budget together
• Budgeted income statement
• Budgeted balance sheet
• Understanding the cost of cash
• The time value of money
• Simple and compound interest
• Growth factors
• Yield curves
• Compounding frequencies
• Effective interest rates
• Discount factors and discount rates
• Present values and future values
• Annuities (ordinary and deferred)
• Annuity due
• Perpetuities
• Interest rate sensitivities
• Risk vs. return
• Bond yields
• Case study