Study Guide

Objectives (course unit)

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 (course unit)

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) (course unit)

The 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. He/she can take responsibility for his individual duties in routine cash and working capital management as well as related measurement and reporting activities, and is able to make some contribution in a group.

Assessment criteria, good (3-4) (course unit)

The 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 in related industry or case specific analyses in controllable situations. He/she works actively and cooperates responsibly and constructively both individually and in a group. He/she 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/her courses of action are well justified.

Assessment criteria, excellent (5) (course unit)

The student can analyse complex situations and produce alternative solution proposals to various cash and working capital management problems. He/she can produce cash flow and digital finance related industry or case specific analyses. He/she 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. His/her courses of action are very well justified, and he can work individually, making remarkable contribution to group work, cooperating responsibly, constructively and flexibly with excellent commitment.

Assessment criteria, pass/fail (course unit)

The student does not perform in the course exam acceptably, or he/she does not complete the compulsory exercises, assignments and/or other compulsory items on the course agendas acceptably.

Location and time

From February 22 to April 19, 2023.

The first class will be there at TAMK Kuntokatu main campus on Feb 22, 2023.
The last class will be there at TAMK main campus Apr 19, 2023.

Exam schedules

No written exam.

Assessment methods and criteria

Student’s overall course grade is based on
1. the evaluation criteria of this course
2. active individual participation in the classes
3. performing the assigned exercises acceptably
4. his/her group assignment performance, including both contribution in the group's own report and action in an opposing team.

Assessment scale

0-5

Teaching methods

Learning discussions, group assignments, exercises, case studies, literature, lecturing.

Learning materials

Bhimani, A., Datar, S., Horngren, C.T. & Rajan, M. 2018. Management and Cost Accounting. 7th ed. Harlow, United Kingdom: Pearson Education.
Especially chapters 13-14.
ISBN: 9781292232669. EISBN: 9781292232676.
https://andor.tuni.fi/permalink/358FIN_TAMPO/176jdvt/cdi_askewsholts_vlebooks_9781292232676

Other books and learning material will be informed to the course participants during the course implementation.

In addition, students and the groups of them perform task-specific data collection, as part of their exercises and group assignments.

Student workload

Max. some 160 hours as workload; approx. 20 hours of that as contact teaching.

Content scheduling

Studying cash, investment and working capital management forms the first key part of the course, studying digital and sustainable finance the second/last part.

The study process 2023:
1. Introduction - incl. rehearsal about the liquidity and solvency measures
2. Cash Budget
3. Capital Budgeting - incl. especially the Discounted Cash Flow (DCF) methods (NPV, IRR, Payback)
4. The Cash Flow Statement (both the Indirect and Direct method)
5. Participation in the Eye on TAMK 2023 Intl Week
6. Working Capital Management - incl. also e.g. the Gearing-% measurement
7. Digital and Sustainable Finance - as Group assignment.

Completion alternatives

No, there are not.

Practical training and working life cooperation

A company visit, or a guest speaker making a visit to us is possible during the course implementation.

International connections

Participation in, at least, one guest lecture on Eye on TAMK 2023 Intl Week in March 2023 is required.

In addition, the truly international group of students studies keenly together both during the classes at TAMK, and virtually.

Further information

Pasi Kuusijärvi, M.Sc. (Econ. & Bus. Adm.), AmO, HHJ
Senior Lecturer, Accounting and Financial Management

Tampere University of Applied Sciences (TAMK)
Tampere, Finland

pasi.kuusijarvi@tuni.fi
Tel. +358 40 846 3052
www.tuni.fi