101 Financial Solutions: Diagnosis and Remedy

After studying this course, you will be able to:

Chapter 1:

• Recognize signs in the concept of revenue base erosion;
• Identify irrelevant cost factors when evaluation special orders;
• Identify causes of a high level of merchandise returns that can affect business profits;

Chapter 2:

• Identify the causes of low turnover of merchandise;
• Recognize trade-offs between excessive inventory ordering and carrying costs;
• Identify order costs and carrying costs associated with inventory management;
• Recognize how the economic order quantity (EOQ) applies to inventory management;
• Identify technologies used to improve inventory tracking and management;
• Recognize reasons that create a lack of inventory storage space;

Chapter 3:

• Identify concepts used in the analysis of profitability;
• Recognize ways to reduce the break-even point, and limitations of break-even analysis;
• Recognize how to apply cost-volume-profit analysis;
• Identify the problems of a weak sales mix and the causes of falling sales or profits;

Chapter 4:

• Identify the risk-return trade-off;
• Recognize components of interest rate risk;
• Identify factors relating to a lack of diversification and increased risk;
• Recognize signs of existing or potential financial problems;

Chapter 5:

•  Recognize influences that can adversely affect the market price of a stock;
• Identify the objectives of debt rating services and some bond terminology;
• Recognize characteristics of evaluating stock prices;

Chapter 6:

• Identify the conditions when bankruptcy looms;
• Recognize steps management can take to avoid business failure;
• Recognize uses of the Altman Z-Score for spotting risky companies;
• Identify measures that a company can take to avoid a takeover threat;

Chapter 7:

• Recognize common ratios used by companies to help manage cash positions;
• Identify ways to improve cash flow and return on surplus funds;
• Identify early warning signs of a company going broke;

Chapter 8:

• Identify ways to minimize the impact of vendor’s price increases;
• Calculate the advantage of accepting vendor terms and discounts;
• Recognize the reasons for poor credit ratings;
• Identify methods to prevent check signing fraud and improper payments;

Chapter 9:

• Recognize commonly used financial ratios that help spot liquidity problems;
• Identify early warning signals for inadequate liquidity;
• Recognize ways to improve return on investment and how return on equity is calculated;
• Identify methods to identify a low rate of return and the signs for poor quality of earnings;

Chapter 10:

• Recognize how to determine the stability/instability in product revenue over time;
• Identify the causes for excessive labor costs;
• Recognize the concept associated with operating leverage;
• Recognize the applications of activity-based costing;
• Understand how a profit-maximizing firm would adjust prices at different levels of demand;

Chapter 11:

• Identify how actual costs can exceed standard (budgeted) costs;
• Recognize how to compute an efficiency variance;

Chapter 12:

• Recognize ways to spot record-keeping errors; and

Chapter 13:

• Recognize the characteristics of different corporate structures used to affect tax planning and preparation.