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eLearning System Roadmap

Module 1

The Foundation – Financial Accounting

Contains a theoretical description of the fundamentals of accounting principles and recording procedures, double entry, the accounting equation and balance sheets, trial balances, income statements, cash flow statements for each typical transaction throughout the first four years of the activity of the firm.

Module 2

Operating The Firm – Financial Reporting

The teaching methodology is based on simulating the “real life” of a company, from launching its operations. It uses the “typical transaction” approach to simplify the learning, on a transaction-by-transaction path.

All transactions carried out by the firm are entered in the Accounting System, in a user-friendly spreadsheet format, from the start of operations (the initial capital provision by the Owners) then each accounting period until the end of the fourth fiscal year. We will use such knowledge and skills in preparing financial statements for seven accounting periods.

The main accounting periods are (note that the first Year includes four shorter accounting periods):

• Month 1
• End of Quarter 1
• End of Quarter 2
• End of Year 1
• End of Year 2
• End of Year 3
• End of Year 4

Throughout the Accounting System you will apply the basic principles learned in Module 1. Cement your knowledge practicing with the AccountingLab. It supports learning, in an apprenticeship environment, using the course content as a reference.

Module 3

Cash Management and Profitability Analysis

On completion of this module you will able to carry out cash management and profitability ratio analysis, and using simulations or ‘What If’ scenarios. These will help you understand and interpret the effect, on the financial statements, of changes in unit prices, number of licenses sold, running costs and supplier’s credit – and finally relating them to the achievement of the company’s financial targets of liquidity and profitability.

The learning methodology makes extensive use of the AccountingLab applied to working on and mastering “What if” scenarios.

Module 4

Strategic Financial Management Basics

On completion of this module you will able to carry out strategic financial management by implementing key policies of the firm aimed at securing the following financial objectives:

• Liquidity, by having sufficient cash to cover future expenses
• Payback, or the recovery of initial investment at any point after the start of the project
• Profitability – (Return on Initial Capital (ROIC) and Return on Equity (ROE))

You will carry out “What if” scenarios for these key variables under different levels of unit prices, market share, expenses, and bank loans and Supplier’s credits. After creating such scenarios, you must interpret the affected financial statements. The aim is to learn how different management actions contribute to your financial objectives and know what to expect from your affected financial statements.

The learning methodology is carried out by using the FinancialLab applied to working and mastering “What if” scenarios.

Module 5

Investment Apprisal

On completion of this module you will able to implement investment decision analysis by running simulations based on:

• Cash flows for four years of operations of the firm
• The Time Value of Money – in theory and practice
• Present value
• Net present value (NPV)
• Internal rate of return (IRR)
• Payback period
• Break-even point (B/E)

“What if” scenarios for key variables under different levels of market share, unit prices, and cost reduction, all set up for achieving the above financial targets. The learning methodology is carried out by using the FinancialLab applied to working and mastering “What if” scenarios.

Module 6

Strategic Financial Management/FinancialLab (The Business Game)

The learning is enhanced by using the FinancialLab applied to cases of “real life” experience.

On completion of this module you will be able to measure the impact of the following key management actions:

• Changes in capital
• Changes in market share
• Changes in unit prices
• Changes in running expenses
• Changes in borrowing and suppliers’ credits

You will see the actions’ effect on the the main indicators of the firm’s financial performance: liquidity, payback, break-even, profitability, Net Present Value (NPV) and Internal Rate of Return (IRR).

You will be able to carry out simulations using the FinancialLab methodology to learn, in a “gaming” environment, how to analyse the impact of these management actions on the main indicators of the firm’s performance – based on the Income Statements and the Balance Sheets from Y1 through Y4.

Module 7

Business Plan – A Case Study

The purpose of a business plan is to submit to lenders and potential investors the benefits, costs, market, technology, skilled personnel, and the financial advantages of a proposed investment in a business opportunity.

As you have gone through EntreprenAble, you should have already acquired the most important knowledge and skills for preparing a clear and sound financial forecast of your business plan. You have learned how to prepare and analyse: Cash Flows Projections, Balance Sheets, Cash Flow Statements, and Change of Equity Statements.

In this Module, you will examine the financials of a fictional company’s business plan. This will help you understand the application of your newly-earned skills, in light of convincing your investors and running a successful business!

Practice