COURSE SYLLABUS

COURSE NUMBER: MNGT 5560 INSTRUCTOR: Henry F. Garcia Website: http://www.webster.edu/~hgarcia/index.html

COURSE TITLE: Budgeting TELEPHONE: 493-1976
INTERNET: garciah@webster.edu

SEMESTER: Fall I 2002 SITE: Ft. Sam Houston

1. Course Description: This course includes financial analysis as it relates to the budgeting process. Students examine short- and long-term budgeting, including such topics as analysis, control, and budgeting of cash flow; ratio analysis, forecasting, and operating budgets; and time value of money as used in capital budgeting. Students who have completed BUSN 5600 and FINC 5000 or equivalents may substitute a course for MNGT 5560.

2. Incoming Competency of Student Expected by Instructor: The student should be generally familiar with the broad business environment, capable of performing graduate level research and able to develop and present a research paper. Students must have completed the requirements for BUSN or MNGT 5000 course.

3. Course Statement of Objectives: This course will introduce the student to the theory and practices of applied financial analysis within the context of contemporary business budgeting. Emphasis will be given to the real-world interpretation of profit planning, operating ratios, cash flow management, variance analysis, forecasting, and capital budgeting.

4. Schedule of Required Assignments, Class Presentations, Lectures, Discussions, and Examinations:

WEEK 1: Introduction and overview of the course; scope of the management process and the fundamentals of profit planning and budgeting.
Read Tracy Budgeting, Chas. 1-2; Tracy Financial Report, Chap. 1, and handout material.
Choose term paper topic.

WEEK 2: Income statement, balance sheet, and cash flow statement. Three necessary internal management reports and financial analysis tools.
Read Tracy Budgeting, Chas. 3-5; Tracy Financial Report, Chas. 2-3&16.

WEEK 3: Operating ratios and capital investment.
Read Tracy Budgeting, Chas. 6-7; Tracy Financial Report, Chas. 21&22.

WEEK 4: Budgeting for growth and management control.
Read Tracy Budgeting, Chas. 8-9; Tracy Financial Report, Chap. 23.

WEEK 5: Profit and sales volume affects on profit.
Read Tracy Budgeting, Chas. 10-11.
MID-TERM EXAMINATION

WEEK 6: Price, cost, and volume affects on profit.
Read Tracy Budgeting , Chas. 12-13; Tracy Financial Report, Chap. 15
WEEK 7: Inflation, cost changes, product mix, and cost allocation affects on profit.
Read Tracy Budgeting, Chas. 14-15.

WEEK 8: Management analysis/control and budgeting for service and manufacturing businesses.
Read Tracy Budgeting, Chas. 16-17;Tracy Financial Report, Chap. 19.

WEEK 9: Long-term capital investments and the return on same.
Read Tracy Budgeting, Chas. 18-19.
Submit term paper and class assignments.
FINAL EXAMINATION

5. Texts Used: Tracy, John A. Budgeting à la Carte Essential Tools for Harried Business Managers, John Wiley & Sons, Inc., 1996. AND Tracy, John A. How to Read a Financial Report, 5th Ed., John Wiley & Sons, Inc. 1999.

6. Supplemental Readings: Instructor will assign readings as necessary for use during class and the development of the term paper.

7. Course Requirements: % of Grade

A) Term Paper 40
B) Examinations 40
C) Participation 20

8. Term Paper: Each student is expected to organize and produce an original term paper. All papers will be “typed”, double spaced, and submitted at the beginning of the ninth week. Further explanation of requirement for the term paper will be presented during the first class meeting.

9. Examinations: Two essay examinations will be given to cover text and handout material. Further explanation of the examinations will be presented during the first class meeting.

10. Participation: The student should have read the assigned material and be prepared to answer questions on this material each class period. Students