Beruflich Dokumente
Kultur Dokumente
Lakes
Institute
of
Managem
ent
LEARNING OUTCOMES Gurgaon
Finance Area
1. Read and interpret the balance sheet, profit and loss statement and the cash flow
statement
2. Evaluate the impact of inventory method, bad debt on profit and loss statement and
balance sheet
3. Evaluate the impact of depreciation, amortization on cash flows, profit and loss
statement and balance sheet
4. Evaluate the impact of debt on profit and loss statement and balance sheet
5. Calculate the book value of shareholder equity
6. Calculate basic financial ratios
1. Compute the cost of a product by nature (direct and indirect), by behavior (fixed and
variable ) and by function (manufacturing, personnel; marketing and finance )
2. Take decision on the basis of cost information
3. Calculate Break Even Point and Operating Leverage
4. Calculate product costing in manufacturing and in service sector using traditional costing
method and ABC method
5. Develop revenue budget
6. Develop cash budget
7. Control budgetary plan through the use of developing flexible budget, variance and
standard costing
8. Calculate price for a product
1. Calculate the value of equity holders of a firm that is financed by both equity and debt
2. Calculate present value of future cash flows
3. Calculate NPV and IRR to take long term investment decisions
4. Perform sensitivity analysis and Monte Carlo simulation to determine the impact on NPV
of uncertainty in future cash flows
5. Calculate market risk adjusted cost of equity using the Capital Asset Pricing
Model(CAPM) based on daily closing stock price data extracted from the NSE website
6. Calculate cost of equity as a function of leverage
7. Calculate Weighted Average Cost of Capital (WACC) for an equity and debt financed firm
1. Separate accounting analysis from financial analysis and business analysis of a Company
2. Establish relationship between balance sheet, profit and loss account and cash flow
statement, in relation to notes to accounts, auditors report ,accounting policies and
management discussions and analysis
3. Calculate controlling and non-controlling interest minority interest, capital reserve,
goodwill on consolidation of accounts
4. Use of ratios and multiples
5. Perform equity analysis – develop DDM and PE
6. Forecast financial performance and calculate projected EPS (usual business scenario)
7. Perform enterprise valuation following DCF Method and calculate of market price of
shares
8. Forecast financial performance and calculate projected EPS (un-usual business
scenario); Analyze and appreciate sector specific company’s financials