Finance OE Training November 2009

Outcomes - Students will: Be comfortable reading Financial Statements at a moderate level – P&L, Balance Sheet, Cash Flow Statement Be able to perform basic analysis of a company’s performance and stability Have the ability to identify further analysis and provide insights provide based on their analysis Familiar with and have a basic understanding of key accounting principals – Matching Principal – Conservativeism Have a basic understanding of Revenue Recognition Have a basic understanding of Cost Accounting Perform basic metric calculations to understand a company’s performance: – Profitability: Profit Margin, Operating Income Margin – Management Effectiveness: ROI, ROE, Inventory Turns, DSO – Valuation: Market Capitalization, P/E ratio

Who is the course for? Department heads, continuous improvement specialists, project managers, non-financial professionals who: – Have a need to understand basic Financial principals and concepts to be effective in their current position – Have recently assumed additional responsibilities who need to understand Finance and basic financial principals – Are developing and enhancing their business skills and broadening their relevance to their company

Finance For Non-Financial Professionals Beginning Finance: – 3 Day Open Enrollment format – students bring Laptop with Excel – Introduction to Financial Statements Overview of P&L, B/S & Cash Flow Use & purpose of each statement Overview of income, expenses, assets, liabilities & equity Frequency of reporting & examples Key insights – Introduction to financial Principals Matching Principal Accrual Accounting Capital assets/depreciation & amortization – Financial Analysis - Beginners’ reading & understanding financial statements Sources of financial information Reading example P&Ls, Balance Sheets & cash flow statements Interpreting key issues Annual reports/10Ks Further questions & research – By the end of the session, students will be able to: Identify, and read financial statements. Develop a high level understanding of how the company is performing from the financial statements. Develop key insights & raise questions about a company’s performance by analyzing financial statements. Understand the basic concepts of the key financial principals. Understand the difference between fixed and variable cost, short and long term assets & liabilities.

Finance For Non-Financial Professionals Intermediate Finance: – 3 Day Open Enrollment format – students should have attended Beginning Finance, or have a basic understanding of Financial Principals and be able to read & understand Financial Statements. Students should bring Laptop with Excel – Review Beginning Finance Review of Financial Statements P&L, B/S & Cash Flow Financial Principals Financial Statement Analysis – Introduction to Budgeting, Productivity, Financial Consolidations, Reserves Departmental budgeting Productivity Financial Consolidations Reserves – Introduction to performance metrics Margin/Margin % Operating Income/% Current metric Turns EPS PE ratio Analysis of company performance – By the end of the session, students will be able to: Identify & read basic performance metrics Perform calculations of basic performance metrics Perform basic performance analysis based on company financial statements & performance metrics Develop key insights about a company’s performance by analyzing financial statements

Finance For Non-Financial Professionals Advanced Finance: – 3 Day Open Enrollment format – students should have attended Intermediate Finance, or have a basic understanding of Financial Principals, performance metrics, and be able to read & understand Financial Statements. Students should bring Laptop with Excel – Review Beginning & Intermediate Finance: Review of Financial Statements P&L, B/S & Cash Flow Financial Principals Basic metrics – Cost Accounting Material, Labor, Overhead Standard Costing Variances – Introduction to advanced financial concepts: Cash Flow Management Inventory Management Working Capital Income Taxes, Tax planning, Timing differences Dividends – By the end of the session, students will be able to: Understand the different types of Cash Flow Perform Cash Flow calculations & develop a Cash Flow Statement Understand the concepts of Cash Flow Management Understand Cost Accounting basics Calculate Cost Of Goods Sold & Ending Inventory Calculate Working Capital and understand the importance of Working Capital