Financial management / Sheeba Kapil.

Format:

Book

Author/Creator:

Kapil, Sheeba.

Language:

English

Subjects (All):

Corporations--Finance.

Corporations.

Business enterprises--Finance.

Business enterprises.

Finance--Textbooks.

Finance.

Physical Description:

1 online resource (1 v.) : ill.

Edition:

1st edition

Place of Publication:

Noida, India : Pearson, c2011.

System Details:

text file

Summary:

Financial Management introduces students to the fundamental tools and concepts of corporate finance by explaining the reasoning behind various financial concepts. The book prepares students for life outside the classroom through snapshots from contemporary organizations, solved examples and application-based problems. The book includes short vignettes about the financial practices of organizations such as Steel Authority of India Limited, Hindalco Industries Limited, Amazon.com and Tata Motors; useful facts and rules of thumb, and provide insights into financial practices in organizations like Godrej Industries Ltd, Infosys Technologies Ltd and ICICI Bank; solved examples, solved problems and excel worksheets to help enhance students' understanding of numerical and MS Excel-based problems.

Contents:

Cover

Brief Contents

Contents

Preface

Unit I: Introduction to Corporate Finance

Chapter 1: Introduction to Financial Management

1.1 Introduction

1.2 Finance Functions

1.2.1 Financing Decisions

1.2.2 Investment Decisions

1.2.3 Liquidity Decisions

1.2.4 Dividend Decisions

1.2.5 Decisions Regarding the Reporting, Monitoring and Controlling of Funds

1.3 The Role of the Finance Manager

1.3.1 The Functions of a Finance Manager

1.3.1.1 Forecasting and planning

1.3.1.2 Analysing and evaluating the investment activities

1.3.1.3 Coordination and control

1.3.1.4 Understanding the finance market

1.3.1.5 Risk management

1.3.1.6 Performance measurement

1.3.2 The Role of a Finance Manager in the Indian Context

1.4 The Goals of a Firm

Business Insight 1.1: Difference Between Financial Services and Corporate Finance

1.4.1 Non-financial Goals

1.4.1.1 Enhancing employee satisfaction and welfare

1.4.1.2 Management satisfaction

1.4.1.3 Social objective

1.4.1.4 Quality service to customers

1.4.2 Financial Goals

1.4.2.1 Target market share

1.4.2.2 Sustaining and maintaining the business position

1.4.2.3 Maintaining financial liquidity and solvency

1.4.2.4 Profit maximization

1.4.2.5 Maximizing shareholders' wealth

Business Snapshot 1.1: Vision, Mission and Objectives of Hindustan Aeronautics Limited (HAL)

Business Snapshot 1.2: Tata Tea Aims to Increase its Market Share

Business Insight 1.2: Understanding Solvency

1.5 Profit and Wealth Maximization

1.5.1 Profit Maximization

Business Snapshot 1.3: Godrej and EVA

1.5.2 Wealth Maximization

1.6 Management Versus Shareholders

1.7 Fields Related to Finance

1.7.1 Economics

1.7.2 Accounting

1.8 Finance and Other Functional Areas

1.8.1 Marketing

1.8.2 Distribution and Selling.

1.8.3 Production and Total Quality Management

1.8.4 Personnel and Behavioural Aspects

1.8.5 Strategic Decisions of Top Management

1.9 Corporate Social Responsibility

1.10 Financial Planning

1.10.1 Steps in Financial Planning

1.10.2 Tools of Financial Planning

1.10.3 Limitations of Financial Planning

1.11 Careers in Finance

1.11.1 Corporate Finance

1.11.2 Financial Planning

1.11.3 Commercial and Retail Banking

1.11.4 Insurance

1.11.5 Mutual Fund

1.11.6 Real Estate

1.11.7 International Finance

1.11.8 Investment Banking

Key Terms

Summary

Classroom Exercises

Case Application

Endnotes

Chapter 2: Fundamentals of Financial Statements

2.1 Introduction

2.1.1 Forms of Business Organizations

2.1.2 Types of Business Operations

2.1.3 Objectives of Accounting

2.1 Service, Merchandising and Manufacturing Companies

2.2 Best Corporate Governance Practices

2.1.4 The Accounting Process

2.1.5 Accrual Basis and Cash Basis

2.1.6 Users of Accounting Information

2.2 Accounting and Bookkeeping

2.3 Generally Accepted Accounting Principles (GAAP)

2.3 ICICI's Net Profit in FY 2004 Differs Under U.S. and Indian GAAP

2.4 Fundamentals of Accounting

2.4.1 Basic Assumptions

Business Insight 2.1: Gross Income and Net Income

2.4.2 Some Basic Accounting Principles

2.5 The Basic Accounting Equation

2.5.1 The Elements of Accounting

2.5.1.1 Assets

2.5.1.2 Liabilities

2.5.1.3 Owner's equity

2.5.2 The Accounting Equation

2.5.3 Recording the Transactions in the Accounting Equation

2.5.4 The Interrelationship of Assets, Liabilities and Owner's Equity

2.6 Accounting Statements

2.6.1 The Income Statement/Profit and Loss Account

2.6.1.1 Contents of the income statement

2.6.1.2 Types of income statements

2.6.1.3 Determining the cost of goods sold.

2.6.1.4 Measuring the profi t

2.6.2 Statement of Owner's Equity

2.6.3 The Balance Sheet

2.6.3.1 Types of balance sheet

2.6.3.2 Relationship between balance sheet and income statement

2.6.3.3 Classification of capital and revenue

2.6.3.4 Depreciation

2.7 Double-entry System of Accounting

2.7.1 Features of the Double-entry System

2.7.2 The 'T' Account

2.7.3 General Rules for Debit and Credit

2.7.4 Rules for Debit and Credit According to Accounts

2.7.4.1 Rule 1: Debit the receiver and credit the giver

2.7.4.2 Rule 2: Debit what comes in and credit what goes out

2.7.4.3 Rule 3: Debit all expenses or losses and credit all income or gain

2.8 Journals

2.9 Ledgers

2.10 Trial Balance

2.11 Annual Reports of Companies

2.12 Advantages of Accounting

2.13 Limitations of Accounting

Solved Problems

Unsolved Problems

Chapter 3: Cash Flow Statements

3.1 Introduction

3.2 Rationale of Cash Flow Statements

Business Insight 3.1: Doing Away with Negative Cash Flows

3.3 Preparation of Cash Flow Statements

Business Snapshot 3.1: Tata Nano to Improve the Cash Position of Tata Motors

3.3.1 Measuring the Change in the Cash Position of the Company

3.3.2 Measuring the Net Cash Flow from the Operations of the Company

3.3.2.1 Cash flow arising from operating activities

3.3.2.2 Cash received from customers

3.3.2.3 Cash received from interest and dividends

3.3.2.4 Cash paid for inventory

3.3.2.5 Cash paid for operating expenses

3.3.2.6 Cash paid for interest

3.3.2.7 Cash paid for income taxes

3.3.3 Cash Flow Arising from Investing Activities

3.3.4 Cash Flow Arising from Financing Activities

3.3.5 Compiling the Cash Flows Arising from Different Activities.

3.3.6 Methods for Preparing Cash Flow Statements

3.4 Funds Flow Statements

3.4.1 Sources of Working Capital

Business Insight 3.2: Currency Fluctuations Hit Operating Cash Flows

3.4.2 Funds from Operations

3.4.3 Uses of Working Capital

3.5 Funds Flow Statements Versus Cash Flow Statements

3.6 The Importance of Cash Flow Statements

Business Snapshot 3.2: Saving Subhiksha

Chapter 4: Cost Concepts for Managers

4.1 Introduction

4.2 Elements of Manufacturing Costs

4.2.1 Direct Cost

4.2.2 Indirect Cost

Business Insight 4.1: Innovations in Product Processes

4.3 Types of Costing Systems

4.3.1 Job-order Costing System

4 .3.2 Process Costing System

Business Insight 4.2: Dual Costing Systems

4.3.3 Job-order Costing System Versus Process Costing System

4.4 Standard Costing

4.5 Variance Analysis

4.5.1 Material Variance

Business Snapshot 4.1: Reducing Packaging Cost

4.5.2 Labour Variance

4.5.3 Factory Overhead Variance

4.6 Approaches to Costing

4.7 Activity-based Costing

4.8 Budgeting

4.8.1 The Importance of Budgeting

4.8.2 Types of Budgets

4.8.2.1 Sales budget

4.8.2.2 Production budget

Business Snapshot 4.2: GM's Cost Reduction Drive

4.8.2.3 Direct materials budget

4.8.2.4 Direct labour budget

4.8.2.5 Manufacturing overhead budget

4.8.2.6 Manufacturing cost budget

4.8.2.7 Selling and administrative expense budget

4.8.2.8 Cash budget

4.8.2.9 Budgeted income statement

4.8.2.10 Master budget

Business Insight 4.3: Static and Flexible Budgets

Case Application 1

Case Application 2

Chapter 5: Cost-Volume-Profit Analysis

5.1 Introduction

5.2 Understanding CVP Analysis.

5.2.1 The Basic Elements of CVP Analysis

5.2.2 The CVP Relationship

5.2.3 The Importance of CVP Analysis

5.2.4 Assumptions of CVP Analysis

5.3 Tools of CVP Analysis

5.3.1 Breakeven Analysis

5.3.1.1 Fixed costs

5.3.1.2 Variable costs

5.3.1.3 Determining the breakeven

5.3.1.4 Managing the Breakeven

Business Snapshot 5.1: The Breakeven Level for the Nano

5.3.1.5 Graphical presentation of break even

Business Insight 5.1: Why Businesses Need to Break Even

5.3.1.5 Estimating margin of safety

5.3.2 Contribution Margin

Business Insight 5.2: Multiple Products

5.4 Business Applications of CVP Analysis

5.4.1 Purchasing New Machinery

Business Insight 5.3: Rules to be Considered when Adding or Dropping Product(s)

5.4.2 Adding or Dropping a Product Line

5.4.3 Make or Buy Decisions

5.4.4 Special Pricing of the Product

5.4.5 Change in Fixed Costs and Sales Volume

Endnote

Unit II: Tools of Corporate Finance

Chapter 6: Time Value of Money

6.1 Introduction

6.2 The Simple Interest Approach

6.3 The Compound Interest Approach

6.3.1 Future Value

6.3.2 Present Value

6.3.3 Discounting and Compounding

6.3.4 Reading Time Value Tables

6.3.5 Using Excel Spreadsheets for Computing Time Value of Money

Excel Worksheet 6.1

Excel Worksheet 6.2

6.3.6 Annuity

6.3.6.1 Ordinary annuity

6.3.6.2 Annuity due

6.3.6.3 The present value of an annuity using the annuity factor

Excel Worksheet 6.3

6.3.6.4 Calculating the future value of an annuity

Excel Worksheet 6.4

Excel Worksheet 6.5

Excel Worksheet 6.6

6.3.7 Perpetuity

6.3.8 Compounding n Number of Times a Year

6.3.8.1 Future value of uneven cash flows compounded monthly.

6.3.8.2 Present value of uneven cash flows compounded monthly.

Notes:

Includes bibliographical references.

Description based on online resource; title from title page (Safari, viewed August 9, 2013).

ISBN:

9789332500976

9332500975

OCLC:

855907426