LDS507 - Finance

Outline info
Semester
School
Last revision date 2017-07-26 10:30:32.004
Last review date 2017-07-26 10:30:32.005


Subject Title
Finance

Subject Description
Leaders in any organization need to understand the cost of doing business. Financial documents are reviewed in order to explain how money is used in a business and can be interpreted to predict an organization's success. The ethical and effective use of financial statements and ratio calculations for forecasting and budget preparation can ensure investments within an organization will produce a healthy return. Knowing the processes for assessing ROI, creating a budget and anticipating variances are critical in any organization in order to make effective decisions.

Credit Status
One full credit toward a Seneca College Certificate in the Leadership Development Series.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Explain the Generalized Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
2. Describe the importance of the following related to decision making: income statements; balance sheets; cash flows; forecasting; breakeven analysis; profit analysis; sensitivity analysis.
3. Explain the use of the following in relation to profitability, stability, liquidity and efficiency: gross profit margin; net margin; ROE/ROI/ROA; debt ratio; current ratio; quick ratio; inventory turnover; average collection/payment period.
4. Explain the critical elements of financial statements including the impact on organizational decisions.
5. Use financial, organizational and operational documents to communicate strategic and leadership activities.
6. Explain the elements of forecasting including how it is used for decision making.
7. Create a variance analysis for a budget.
8. Create a forecast for a work initiative.
9. Create a budget for a work initiative.
10. Make decisions based on relevant financial analysis.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Prerequisite(s)
None.

Topic Outline

  • Capital budgets
  • Operational budgets
  • Financial statements
  • Income statements
  • Balance sheets
  • Management accounting
  • Cost of capital
  • Cost of Goods Sold
  • Fixed costs
  • Variable costs
  • Cash flows
  • Earnings multiples
  • Calculation of profit margin and other ratios of profitability
  • Inventory management
  • Cost of inventory
  • Principles of purchasing
  • Financial forecasting
  • Sensitivity analysis
  • Budget creation
  • Internal audit
  • Variance analysis
  • NPV (net present value)
  • Hurdle rate
  • Minimum acceptable rate of return

Mode of Instruction
Online
A combination of teaching methods will be utilized which may include case studies, discussions, group and individual work.

Prescribed Texts
Online:

No textbook required

Reference Material
None.

Required Supplies
None.

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
OR
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.


Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor immediately, prior to when your assignment is due, so an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks after the assignment due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail.  Please ensure that all assignments and reports are properly documented.

Students are referred to the following web site for the Seneca College Library MLA Style Guides, Academic Honesty Policy and Copyright guidelines:  

http:/senecacollege.ca/library

Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the even of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency:

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this course in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Students must achieve an overall grade of 60% in order to pass the course.

Grading is based on the following marking scheme: 

Online

Assignments 50%
Project 20%
Final exam 30%
   


Please retain this course outline document for future educational and/or employment use.

Academic Program Manager:
Emiliano Introcaso

Approved by: Chair - Business Studies Danielle Mercier