BU407 Financial Management (3 cr.)

This course is an introduction to the theory and practice of financial management of organizations. Topics covered include the assessment of types of business entities and capital acquisition sources, basic financial statement analysis, the assessment of how income taxes impact the financial decision-making process, the evaluation of capital projects using the time value of money concepts, management of an entity’s current assets and current liabilities, and the maximization of shareholder wealth.

Upon completion of this course, students are expected to be able to do the following:

1. Identify and describe the various forms of business organizations and the different ways in which they are financed.
2. Explain the financial reporting requirements for different types of business entities.
3. Apply the principles of managing current assets and current liabilities to different types of business entities.
4. Assess the existence of management problems or opportunities by analyzing company financial statements and making comparisons to other companies in the same industry.
5. Compute net present values calculations and use them in financial decision making.
6. Prepare cash flow budgets.
7. Prepare a breakeven analysis for profit planning.
8. Identify and explain how the actions of the federal government may impact financial decision making.