PHILIPPINE CHRISTIAN UNIVERSITY

Graduate School of Business & Management

FINANCIAL MANAGEMENT

PROF. ARMANDO B. BO, CPA

A. Course Description:

The course provides the students with an integrated view of the financial functions in
the corporate organization. Its scope and responsibilities and authorities and its linkages with
other segments of the organization.

Emphasis is given of the following:

a) logical and meaningful financial analysis of the performance and condition of business
concern;

b) efficient management of assets and effective management of the liability and equity
structure of the organization; and

c) long-term financing decisions

B. Course Objectives:

This course aims to further enhance the students’ knowledge of the theories, concepts
and practices applied in financial decision-making in a business organization. The intention is
not to train students to become technician on the subject, but to become intelligent users of
financial information for decision-making purposes.

C. Course Outline:

Time Value Analysis 3

Case 3.2 : PCI Bank’s Own – A – Home Special
Submit : Prob. 3 – A24 – Time Value uneven cash flows

Financial Ratio Analysis 5

Case 5.2 : Kouk Philippines Properties, Inc.
Submit : Prob. 5 – B6 – Reconstructing financial statement
from ratios

Working Capital Policy and Management 9

Case 9.1 : Olympian Backpacks, Inc.
Submit : Prob. 9 – A11 – Role of Short-term bank loan

(1)
Cash Management 10
Case 10 .1 : Manila Supply Inc.
Submit : Prob. 10 – B8 – Fund Generation and cash cycles

Accounts Receivable Management 11

Case 11.1 : Mariwasa Manufacturing Corporation
Submit : Prob. 11 – B14 – Using an Accounts Receivables
Aging Schedule

Inventory Management 12
Case 12.13 : Asia Nova Ceramics Inc.
Submit : Prob. 12 - B9 – Economic Order Quantity and
Reorder Paint

Financial Forecasting 13
Case 13.2 : Champion Cattle Farms, Inc. (A)
Submit : Prob. 13 – A19 – Proforma balance sheet with
choice of financing

Cost and Profit Planning 14

Case 14.2 : Champion Cattle Farms, Inc. (B)
Submit : Prob. 14 – A7 – Break-even sales with target income
and taxes

Capital Budgeting Analysis of Relevant Cash Flows 15

Case 15.2 : Michael Jordan, Chicago Bull
Submit : Prob. 15 – B17 – Cost savings replacements

Main Reference:

Principles of Managerial Finance by: Cesar Saldana

Other References:

Financial Management in the Philippines Setting by: Cesar Saldana

Business Finance Management by Philip L. Cooley, et.al
Principles of Corporate Finance by: Richard A. Brealey, et al

Course Requirements:

1. Submission of a least 8 problems Marked Submit (individual) except problems 3 – A24

2. Oral (Theory and case study) – group work; individual grade
3. Final Examination to be announced
4. Attendance of not less than 6 (absences of more than 2 is considered drop)

(2)