Transcript title

Business Analysis Budgeting

Credits

4

Grading mode

Standard letter grades

Total contact hours

50

Lecture hours

30

Other hours

20

Prerequisites

BA 104; BA 112; and CIS 131.

Recommended preparation

CIS 125E.

Course Description

This course is designed to develop mathematical analytical skills in performing the daily tasks of a manager or salesperson. The course has a threefold focus: strengthening understanding and use of business terminology in regards to financial information; development of spreadsheet skills in evaluating the costing, pricing and financing strategies of products and services; and development of skills in evaluating and making budgeting, financial and investment decisions. This is a hands-on, skills-oriented course.

Course learning outcomes

1. Manage time, meet deadlines, and be properly prepared to be fully engaged in course discussions.
2. Develop problem-solving techniques to determine the reasonableness and accuracy of solutions.
3. Determine the profitability of products and services using various purchasing, inventory, and pricing strategies.
4. Analyze financial statements from an operational standpoint using key ratios.
5. Select appropriate lending and borrowing strategies using compound interest and loan payment amounts.
6. Evaluate investment decisions based on present and future cash flows using net present value.
7. Prepare an annual cash budget on a month-by-month basis and justify the assumptions made within that budget.
8. Project future operational costs and develop pro-forma income statements.
9. Determine sales volume requirements for break-even and targeted profit points.
10. Conduct “what-if” analysis with market variables used in decision making.

Content outline

• Excel review
• Percent/ratios/proportions
• Simple Interest
• Compound Interest/FV/PV
• Mortgages
• Consumer loan payments
• Net Present Value NPV
• Internal Rate of return - IRR
• Percents and Discounts
• Chain and Cash Discounts
• Cash Flows
• Budgeting Budget Variance
• Financial Statement Analysis Section 9
• Budgeting and Goal Seek
• Break-Even Analysis and Weighted Averages
• Master Budget

Required materials

Required textbook and specified calculator.