Hidden River Case

Topics: Finance, Financial statements, Generally Accepted Accounting Principles Pages: 6 (1361 words) Published: March 2, 2011
Working Capital Mgt Winter 2011
General Information
Class meetings Section 30 Tuesday nights at 7:00pm to 9:50pm in OB B03 Starts January 11, 2011 Prof. G. W. Fenn Upon request and prior to class E-mail gfenn@uwindsor.ca

Instructor Office hours


Upon request (use Office gwf99fenn@netscape.net) Ms. S. Miller, tel: 519-253-3000 ext. 3128 4th floor Odette Building E-mail


Secretary Office


Course Description
This course will introduce you to the challenging task of managing a company’s working capital. Managing working capital involves establishing appropriate levels for the various working capital accounts, controlling the flow of dollars among the accounts and monitoring the accounts to ensure adequate liquidity and to enhance the profitability of the firm. The case study approach will be used throughout this course.

Learning Objectives and Expected Outcomes
This course will provide you with a background in working capital management that will help prepare you to be a successful financial manager. On completion of this course you should be able to: o o o o o o Apply financial analysis techniques in a case situation Discuss a company’s performance by analyzing its financial statements Understand the integration of working capital accounts is assessing the liquidity and growth prospects of an organization Discuss how inflows and outflows of cash are controlled, monitored, budgeted and forecasted Determine the borrowing needs of an organization related to working capital Discuss how an organization’s business plan affects it short-term funding needs and the sources of capital

The course will specifically

o o o o o o o o o o o

Illustrate and discuss the elements of working capital management Show how these elements are integrated Illustrate how working capital needs are affected by growth and business performance Illustrate how financial planning, analysis and forecasting is used in working capital management Discuss the financing strategies for current assets and permanent working capital elements Discuss bottoms up and top down cash forecasting, monitoring and governance Illustrate how ratio analysis can be helpful in cash cycle planning Discuss how working capital elements affect business valuation and overall financial statements Discuss typical loan granting criteria used by lenders and rating agencies Discuss some of the types of short-tem financing available including venture capital Discuss how emotion, seasonality and financial behaviour may affect working capital decisions

Textbook and Other Materials
72-373, Course Ware Package, Document Imaging Centre, University of Windsor. Complied by Prof. Garnet W. Fenn Reference Texts: Current texts for Introductory Finance and Introductory Accounting (use your prior books)

Course Website
Follow the links from the University of Windsor CLEW website. To login, use your own username and password. Course materials, including the course outline, assignments, announcements etc., will be posted on the website on a regular basis.

Class by Class Assignments
January 11

Assignments, topics, etc
Introduction to the elements of working capital management, financial statement analysis and cash management governance Case #1 – Adept Chemical Inc. Financial statement ratio analysis Case #2 – Chef’s Toolkit Inc. Venture capital and “Bottoms up” financing and cash needs Case #3 – Palmer Limited Venture capital and “Top down” financing and cash needs Case Examination Case to be assigned on February 1

January 18

January 25

February 1

February 8

February 15

Introduction to business planning, asset valuation, credit analysis and types of financing related to working capital management Reading week Case #4 – Hongxing Auto Sales and Service Co. Integration of business valuation techniques with working capital asset analysis Case #5 – The Health Nut Importance of proper short term...
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