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Finance Department

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Hiếu Anh Phan
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10 views12 pages

Finance Department

Uploaded by

Hiếu Anh Phan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FINANCE

DEPARTMENT
This document must be completed and submitted to the moderator when he asks
you to. Then, it has to be regularly updated when data change.

You are responsible for holding the Finance Director position.

Your missions :

1. Monitor the financial balance of the enterprise.


2. Address cash management the best way. The ideal is to possess a bank account
close to zero; for this, you have to anticipate the receipts and outflows of the
upcoming month.
3. Manage the WCR and finance it, along with the Marketing Director.
4. Finance the investments along with the Production Director.
5. Optimize the funds you have at your disposal : investments, reimbursements.

Briefly describe your principles of action and justify them. You are also required to
state the questions you’ve wondered about, and potentially to say how you have
obtained the piece of information.

Subakoua – Finance department 2


EXECUTIVE TEAM FLOW CHART
Company N° :
Name of the company :
Baseline :

Executive
management

Human
Procurement Commercial Production Financial
Resources
management management management management
management
Last name Last name Last name Last name Last name

First name First name First name First name First name

Cell phone Cell phone Cell phone Cell phone Cell phone

Subakoua – Finance department 3


DIAGNOSIS
See the balance sheet and complete the table below.

Chartered accountant > Summary > Balance sheet


Bank account Savings account Liquid asset Share portfolio Bonds portfolio Equity portfolio

Short term Short term


Working capital OWCR Current assets WCR
operating debts debts

Comments :

Subakoua – Finance department 4


DIAGNOSIS
See the Income statement and complete the table below.
Chartered accountant > Summary > Income statement

Net income Turnover Profitability rate Net income Equity ROE


Expert comptable > Synthèse > Compte de résultat

Financial
Long term Borrowings & Self financing
Equity independence CAF
liabilities financial debts capacity ratio
ratio

Comments :

Subakoua – Finance department 5


MARGINS BY DISTRIBUTOR AND PRODUCT
Discount / channels are regarded as a cost to be deducted from the price.
For doing the calculations use a spreadsheet software.
Shorty 3 Integral 3 Shorty 5 Integral 5 Integral 7

Sale price a
Discount channel A b
Discount channel B c
Neoprene d
Reinforcement e
Cuffs f
Zippers g
Cutting h
Assembly i
Shipping j
Other cost k
Direct unit cost A l=b+d+e+f+g+h+i+j+k
Direct unit cost B m=c+d+e+f+g+h+i+j+k
Unit gross margin A n=a-l
Unit gross margin B o=a-m

Subakoua – Finance department 6


MARGIN RATE

As a second step, calculate gross margin rate, using price before discount.

Shorty 3 Integral 3 Shorty 5 Integral 5 Integral 7


Sales price before discount a
Unit gross margin A b
Gross margin rate chanel A b/a
Unit gross margin B c
Gross margin rate chanel B c/a

Estimate of average per product

Gross margin of company (estimate)

Subakoua – Finance department 7


COORDINATION OF ACTIONS
Questions be put to other departments.

Example of possible questions to be posed to the procurement department.


For each raw material, what is the delay granted by the supplier ?
What is the average delay concerning the procurements payment ?

Answers

Subakoua – Finance department 8


COORDINATION OF ACTIONS
Questions be put to other departments.

Example of possible questions to be posed to the production department.


Do you plan important stocks?
Do you practice a leveling of production ?
Do you plan stock fluctuations over the course of the year ?
Do you intend to resort to subcontracting ?

Answers

Subakoua – Finance department 9


COORDINATION OF ACTIONS
Questions be put to other departments.

Example of possible questions to be posed to the commercial department.


Do you grant payment extensions to customers ? For which duration ? For which amount ?
What will your credit policy be over the course of the year ?
What are the predictable credit fluctuations ?

Answers

Subakoua – Finance department 10


COORDINATION OF ACTIONS
Questions be put to other departments.

Example of possible questions to be posed to our department.


Are there any important deadlines to plan and especially fiscal ones : prepayments, tax
settlement ?
When? Which amount ?

Answers

Subakoua – Finance department 11


PROJECTED BUDGET
The Director of the department has to formulate a budget summary which maps the
products and the costs (in an appendix) to shed the light on margins and on provisional
results. He also has to provide a plan of cash flows (to add in an appendix as well)
which takes into account the monthly revenues and expenses.
He lays down the terms and conditions of investment financing or considered WCR,
choices made in terms of investments precising choices in terms of risk.

Our conclusions :

Subakoua – Finance department 12

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