FFM Textbook Syllabus
Chapter 1
Syllabus A. Working Capital Management
A1. Working capital management cycle
- A1abc. Working Capital Management3:01
- A1de. Cash Operating Cycle2:21
- A1d. Receivables Days1:09
- A1d. Payable days0:50
- A1d. Inventory days0:29
- A1f. Overtrading3:08
- A1g. Over-capitalisation and Over-trading
- A1g. Ratios and Strategy
A2. Inventory control
- A2b. Work In Progress - WIP
- A2acd. Economic Order Quantity1:42
- A2d. EOQ with Discounts3:25
- A2d. Buffer Stock6:36
- A2e. Just-In-Time2:06
A3. Accounts payable and receivables control
- A3. Accounts payables
- A3. Managing Receivables in Practice2:05
- A3g/C3d. A3g & C3d. Early Settlement Discounts (Creditors)2:45
- A3g. Early Settlement Discounts4:32
Chapter 2
Syllabus B. Cash Budgeting
B1. Nature and sources of cash
- B1a. Cash, cash flow and funds
- B1b. Importance of cash flow management
- B1c. Sources of finance
- B1de. CF and different types of organisations
- B1fg. Cash vs. Accrual Accounting
- B1h. Cash flow and profit
- B1h. The effect of transactions on cash flows
B2. Cash budgeting and forecasting
- B2a. Cash budget
- B2b. Linear Regression2:29
- B2b. Time Series Analysis10:35
- B2c. Inflation and the impact on CF
- B2deg. Cashflow Forecasts1:42
- B2f. The Use of Simulation, Expected Values and Sensitivity
Chapter 3
Syllabus C. Managing Cash Balances
C1. Treasury function
- C1a. Main functions & treasury functions
- C1b. Advantages of a centralised treasury department
- C1c. ADV and Disadv. of centralised cash control
- C1d. Cash Handling Procedures
- C1ef. Optimal cash balances
C2. Overview of financial markets
- C2a. Types of banks
- C2h. Financial Markets
- C2bc. The Role of Financial Intermediaries
- C2d. Benefits of financial intermediation
- C2e. Relationships between financial institutions
- C2h. The role of money and capital markets
- C2h. The role of banks in the operation of the money markets
- C2f. The characteristics and role of the principal money market instruments
- C2e. Equity
- C2e. Preference Shares
- C2g. NCL - debts
- C2i. Functions of Stock and Bond markets
- C2j. Reasons for a stock exchange listing
C3. Managing deficit cash balances
- C3aef. Short term finance7:50
- C3b. Different forms of bank loans
- C3b. Loan or overdraft?
- C3c. Legal relationship between bank and customer
C4. Managing surplus cash balances
- C4abcd. Cash surpluses and deficits
- C4e. Risk and Return of different securities
- C4f. Default Risk
- C4gh. Baumol Model3:15
Chapter 4
Syllabus D. Financing Decisions
D3. Long term financing
- D3ab. Long term finance2:01
- D3b. Debt or Equity?3:26
- D3c. Gearing considerations1:48
- D3d. Merits and limitations of LT finance
- D3e. Mix of finance in an organisation
- D3f. Internal funds
D4. Financing for small and medium sized enterprises
- D4a. SMEs and stakeholder interests
- D4bc. Reasons why a small business can find it difficult to obtain finance
- D4d. Government and SME
- D4ef. Venture capital
- D4gh. Finance for SMEs
Chapter 5
Syllabus E. Investment Decisions
E1. Financing concepts
E2. Capital budgeting
- E2a. Importance of capital investment planning
- E2b. Preparation of a capital expenditure budget
- E2c. Capital and revenue expenditure
- E2d. Investment in NCA vs. investment in WC
- E2e. Investment appraisal process0:29
E3. Capital investment appraisal
- E3a. Payback method3:00
- E3a. Adjusted Payback3:05
- E3b. Accounting Rate of Return13:11
- E3cd. Relevant Costs
- E3ef. NPV2:39
- E3f. Annuities & Perpetuities4:21
- E3gh. Internal Rate of Return2:57
- E3i. NPV v IRR4:51
- E3j. Discounted Cashflows
Chapter 6
Syllabus F. Credit Management
F1. Legal issues
- F1a. Key elements of a contract
- F1b. Terms and conditions - contracts with credit customers
- F1c. Collection of debts
- F1d. Data protection
- F1e. Bankruptcy and insolvency
F2. Credit granting
- F2ab. Credit management
- F2c. Assessing the credit-worthiness
- F2de. Internal and external sources of information
- F2f. Credit Score
- F2g. Rejecting or extending credit
- F2hi. Ratios and credit-worthiness
- F2j. Ratio limitations
F3. Monitoring accounts receivables
- F3a. Accounts receivables records
- F3b. Accounts Receivable Reconciliation
- F3b. Internal sources
- F3c. External sources