Description:

Upon successful completion of this course, the student should be able to identify and evaluate the various sources available for funding a small business; demonstrate an understanding of financial terminology; read, prepare and analyze a financial statement; and write a loan proposal. In addition, the student should be able to explain the importance of working capital and cash management. The student should also be able to identify financing needs, establish credit policies, and prepare sales forecasts. This course is required for a vocational certificate and associate of applied science degree in business entrepreneurship. 2 hrs./wk.

Supplies: Refer to the instructor's course syllabus for details about any supplies that may be required.

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Identify, discuss and prepare the main financial statements (balance sheet, income statement and cash flow statement) that are important to an entrepreneur.
2. Identify sources of financing available to small business and explain the advantages and disadvantages of each.
3. Explain the importance and methods of cash management.
4. Make a financial statement analysis utilizing ratio analysis, break-even point and trend analysis.
5. Evaluate the credit worthiness of a business.

Content Outline & Competencies:

I. Financial Statements (Balance Sheet, Income Statement and Cash Flow
Statement).
   A. Define financial terminology.
   B. Explain the importance and use of each financial statement.
   C. Prepare three-year proforma Income Statements, Balance Sheets and
Cash Flow Statements.

II. Sources of Financing
   A. Differentiate between debt and equity financing.
   B. Identify sources of debt and equity financing.
   C. Analyze the advantages and disadvantages of each form of financing.
   D. Identify the various types of business loans.
   E. Interpret the terms and conditions of a loan.

III. Cash Management
   A. Prepare a cash budget including:
      1. Start-up costs.
      2. Revenues.
      3. Expenditures.
   B. List methods of improving cash flow within a business.
   C. Determine the financial needs of a business.
   D. Describe methods of financing cash deficits incorporating internal
cash management techniques and external resources.

IV. Financial Statement Analysis
   A. Define the most common ratios used to evaluate and manage a
business, including:
      1. Using ratio analysis, assess the financial health of a business.
      2. Determine the break-even point for a business start-up.
      3. Interpret financial trends within a company.

V. Credit Worthiness
   A. Define the 5C’s of credit
   B. Evaluate the credit worthiness of a business using financial ratios
such as:
      1. Debt ratios.
      2. Equity ratios.
      3. Profit ratios.

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

   Tests/Quizzes    30%
   Assignments      40%
   Projects         30%
                   100%

Grading Scale:
   A = 90-100%
   B = 80- 89%
   C = 70- 79%
   D = 60- 69%
   F = 59% or less

Caveats: NONE

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.