Finance for Small Business
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  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Fall 2001
Prerequisites: N/A
Corequisites: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Business Admin - General
Program Coordinator(s): Brian Lyons
Course Leader or Contact: Nick Hunking
Status: Approved (APPR)

Section I Notes: A passing grade in ACCG2004, Finance 2001 and Math 2005 is recommended for successful completion of this course.

Section II: Course Details

Detailed Description
This course provides students with the necessary tools and skills to comprehend fully the basic financial statements, enables them to read and analyze these statements and based, on the analysis, make decisions related to: investments, divestment, expansion of the current operations under study, eliminating one of the product lines, using scarce resources most effectively, repairing or replacing a capital asset, raising capital at sustainable cost etc.

Program Context

Business Admin - General Program Coordinator: Brian Lyons
This course is a core component of the program that builds on the finance, numeracy and communications skills of Foundation Year courses such as Accounting, Business Mathematics, Finance and Business Communications, improving student's skills in financial analysis and report writing to prepare them for employment if they graduate with a two-year diploma, or for the higher-level courses in third year. The financial analysis and report-writing elements of the course prepare students for courses such as Business Policy in the second semester of second year and the Business Decision Laboratory and Entrepreneurship and Small Business Management in third year. Through its reports component, the course also builds on the Foundation Year Business Communications course and is linked with the second year Reports and Presentation course.

Course Learning Outcomes
Learning outcomes identify the critical performances, and the knowledge, skills and attitudes that successful students will have reliably demonstrated through the learning experiences and evaluation in the course. Successful students will have demonstrated the following:

Successful students will have demonstrated 
knowledge of:

-how break-even analysis can impact on financial 
 decision making.
-how to compute numerous financial ratios.
-how to compute the different capital budgeting 
-how to read and compute a Statement of Change in 
 Financial Position.
-how to analyze investment decisions and make 
-identify the most effective use of scarce  
-the components to working capital and how changes 
 in managing these components can impact on  
 working capital.
Successful students will have demonstrated further 
development in their abilities to:

-analyze a firm by interpreting financial ratios 
 and finanacial statements.
-evaluate historical trends and future 
-select the most effective use of scarce 
-do profit planning and analyze the implications 
 to decision-making.
-do Budgeting, Financial Planning and Controlling 
 and the implications to the firm.
-compute the cost of capital and the implications 
 to evaluating capital expenditure projects.
-make capital investment decisions and evaluate 
 capital expenditure projects.
-manage both internal and external sources and forms of financing.
-analyze a Statement of change in financial  
-analyze a Valuation of a business.
-evaluate the implications of changes to working 
 capital management. 
Successful students will have demonstrated 
attitudes of:

Commitment to thorough problem analysis processes, 
development of creative accounting/finance 
solutions and production of high quality reports 
and presentations.

Responsibility as demonstrated by behaviours such 
as attending, participating and learning in 
classroom and group study.

Responsibility in meeting deadlines for 
assignments, reports and tests.
Evaluation Plan
Students demonstrate their learning in the following ways:

Grades will be assigned in the following manner:

Tests:  There will be three tests worth 30% each     90%
Assignments:                                         10%
                                         Total:     100%

Students are expected to attend classes and participate.  Absence due 
to special circumstances should be discussed with the professor in 
advance, wherever possible.  Students are advised to consult the 
course schedule on a regular basis.  It is the student's 
responsibility to know where they are in the course and be prepared 
for the upcoming class sessions.
Provincial Context
The course meets the following Ministry of Training, Colleges and Universities requirements:


Generic Skills
Generic Skills emphasized in the course:

X communication - written   communication - oral   communication - visual
X analytical   creative thinking X decision making
  interpersonal X numeracy   organizational
X problem solving   technological   other (see below)

Notes: N/A

General Education
This General Education course relates to the following themes as specified by the Ministry of Training, Colleges and Universities.

  asthetic appreciation   social understanding
  civic life   understanding science
  cultural understanding   understanding technology
  personal development   work and the economy

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) : Office of the Registrar

Students may apply to receive credit by demonstrating achievement of the course learning outcomes through previous relevant work/life experience, service, self-study and training on the job. This course is eligible for challenge through the following method(s):

Challenge Exam Portfolio Interview Other Not Eligible for PLAR

Notes:  N/A

Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Effective term: Fall 2001
Professor: Nick Hunking
Foundations of Financial Management, Fifth Canadian Edition by Block, 
Hirt and Short.  Published by McGraw Hill Ryerson (ISBN 0-07-560947-9)

Applicable student group(s): Business Students
Course Details:
Some details of this outline may change as a 
result of circumstances such as weather 
cancellations, College and student activities, and 
class timetabling.


Unit 1-Financial Management - Chapter 1
-Define financial management

Week 2

Unit 2-Review of Financial Statements-Chapter 2
-Review balance sheet
-Income statement
-Statement of retained earnings
-Review depreciations methods; straight line,  
 sum-of-the-digits and capital cost allowance
-Comparative Balance Sheets
-Identify sources and uses of funds
-Prepare statement of change in financial position
-Interprete a statement of change in financial  


Unit 3-Ratios-Chapter 3
-Vertical analysis and common size balance sheet
-Solve problems using these calculations and  


Unit 4 - Financial Forecasting - Chapter 4
-Pro Forma Income Statement
-Pro Forma Balance Sheet


Unit 4 - Financial Forecasting - Chapter 4
-Cash Budgets
TEST #1 (30%)


Unit 5-Profit Planning and Decision Making-
       Chapter 5
-Analyze cost behaviour
-Break-Even analysis
-Profit Analysis and Planning

Unit 6 - Sources of Financing Chapters 8 and 14
-Sources of Short-Term Financing
-Sources of Long-Term Financing



Unit 7-Cost of Capital - Chapter 11
-Cost of Financing
-Calculating the Cost of Capital


Unit 7 - Cost of Capital - Chapter 11
-Marginal Cost of Capital
TEST #2 (30%)


Unit 8 - Capital Investment Decisions-
         Chapter 12
-Review Time Value of Money
-Capital Budgeting Techniques


Unit 8 - Capital Investment Decisions - Chapter 12
-Capital Rationing


Unit 9 - Mergers and Acquisitions - Chapter 20
-Valuations of Companies


Unit 10 - International Financing Management
-Spot Rates and Forward Rates 

Week 14


Sheridan Policies

All Sheridan policies can be viewed on the Sheridan policy website.

Academic Integrity: The principle of academic integrity requires that all work submitted for evaluation and course credit be the original, unassisted work of the student. Cheating or plagiarism including borrowing, copying, purchasing or collaborating on work, except for group projects arranged and approved by the professor, or otherwise submitting work that is not the student's own, violates this principle and will not be tolerated. Students who have any questions regarding whether or not specific circumstances involve a breach of academic integrity are advised to review the Academic Integrity Policy and procedure and/or discuss them with the professor.

Copyright: A majority of the course lectures and materials provided in class and posted in SLATE are protected by copyright. Use of these materials must comply with the Acceptable Use Policy, Use of Copyright Protected Work Policy and Student Code of Conduct. Students may use, copy and share these materials for learning and/or research purposes provided that the use complies with fair dealing or an exception in the Copyright Act. Permission from the rights holder would be necessary otherwise. Please note that it is prohibited to reproduce and/or post a work that is not your own on third-party commercial websites including but not limited to Course Hero or OneNote. It is also prohibited to reproduce and/or post a work that is not your own or your own work with the intent to assist others in cheating on third-party commercial websites including but not limited to Course Hero or OneNote.

Intellectual Property: Sheridan's Intellectual Property Policy generally applies such that students own their own work. Please be advised that students working with external research and/or industry collaborators may be asked to sign agreements that waive or modify their IP rights. Please refer to Sheridan's IP Policy and Procedure.

Respectful Behaviour: Sheridan is committed to provide a learning environment that supports academic achievement by respecting the dignity, self-esteem and fair treatment of every person engaged in the learning process. Behaviour which is inconsistent with this principle will not be tolerated. Details of Sheridan's policy on Harassment and Discrimination, Academic Integrity and other academic policies are available on the Sheridan policy website.

Accessible Learning: Accessible Learning coordinates academic accommodations for students with disabilities. For more information or to register, please see the Accessible Learning website (Statement added September 2016)

Course Outline Changes: The information contained in this Course Outline including but not limited to faculty and program information and course description is subject to change without notice. Any changes to course curriculum and/or assessment shall adhere to approved Sheridan protocol. Nothing in this Course Outline should be viewed as a representation, offer and/or warranty. Students are responsible for reading the Important Notice and Disclaimer which applies to Programs and Courses.

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