Study Guide

Objectives

The course completes the students’ accounting and finance module studies and consists of two parts.

Firstly, the students study and learn about the working capital management concept and theory. Studying this part is linked to understanding of typical corporate life from start-up to growth company – and further on to the mature business phase.

Secondly, a selection of advanced industry-specific and other themes and topics are assigned to the students, enabling them to link their accounting and finance studies to their own favorite industries or some most motivating current themes and topics of today’s business life.

After completing the course, students will be able to:

Apply their finance and managerial accounting skills to industry-specific business cases.
See and analyze the big picture of working capital case-specifically, react immediately when necessary - and initiate business development actions based on the analysis.
Control the working capital professionally, using performance measures such as current ratio, turnover of inventory, turnovers of accounts receivable and payable, as well as gearing %.
Calculate the profitability of working capital investment using the net present value (NPV) method.
Identify the need for using advanced methods such as just-in-time (JIT) management, lean accounting and environmental accounting when necessary.
Create basic-level cash plans and cash flow forecasts.

Content

What is the working capital concept, and what is the strategic importance of it?
What is the working capital cycle, and how can working capital be managed successfully?
How can cash and inventory processes and balances be improved?
How can the management of trade receivables and payables as well as cash flows be enhanced?
What is gearing %, and how can it be used in practice?
Which industries, current trends and phenomena are potential ones for advanced accounting and finance efforts and applications?
When is it time for environmental or lean accounting, or e.g. for applying the just-in-time (JIT) method?

Assessment criteria, satisfactory (1-2)

Student is able to determine and use the concepts and methods of cash management and working capital management, as well as some cash flow and digital finance related industry or case specific applications sufficiently. Student can take responsibility of his individual duties in routine cash and working capital management as well as related measurement and reporting activities, and is able to produce some contribution in a group.

Assessment criteria, good (3-4)

Student has the competence of applying and explaining the concepts and methods of cash and working capital management as well as performing cash flow and digital finance related industry or case specific analyses in controllable situations. Student works actively and cooperates responsibly and constructively both individually and in a group. Student can solve cash and working capital management problems as well as work on cash flow and digital finance related measurement, reporting and development activities. His courses of action are well justified.

Assessment criteria, excellent (5)

Student can analyse even complex situations and produce alternative solution proposals to various cash and working capital management problems. Student can produce cash flow and digital finance related industry or case specific analyses. Student can apply his extensive knowledge and skills of the subject matter excellently in problem solving, experiments, and when working on cash flow and digital finance related analysis, reporting and business development activities. Student’s courses of action are very well justified, and he can work strongly individually, producing remarkable contribution to group work, cooperating responsibly, constructively and flexibly with excellent commitment.