This course is a financial primer that integrates finance and accounting into a dynamic view of the process by which cash flows through an organization. Students will follow the money as it moves into the organization from customers, bankers, and other investors through the organization, creating value in payments to employers, investors, etc. In contrast to the functional view of the organization found in BBA101, this course presents the organization as a process for creating value for customers, employees, and equity owners.
The course project, Financial Evaluation: Determining a Company’s Trends and Potential, culminates in a cohesive picture of the financial flow of a business. Throughout the course, students will construct the evaluation report by analyzing various aspects of a chosen business including accounting systems, merchandising operations, inventory analysis, receivables and assets, liabilities, stockholder’s equity, and statements of cash flow.
Course Learning Objectives
- Describe the concept of financial accounting and its importance to the marketplace.
- Describe the various forms of a business organization to include their strengths and weaknesses.
- Interpret data on key financial statements, including balance sheets, income statements, and cash flow statements.
- Calculate financial ratios to include liquidity, profitability, and solvency.
- Explain the importance of financial statements within the financial environment and how various stakeholders use the information to make key decisions.
- Compare a company's financial ratios to the industry standard and explain the relationship between them.
- Explain how money flows into and out of an organization utilizing the financial and accounting concepts and statements introduced in the course.