3.1
Introduction to finance
Role of finance, Capital expenditure, Revenue expenditure
3.2
Sources of finance
Internal finance, External finance, Short-term and long-term suitability
3.3
Costs and revenues
Fixed and variable costs, Direct and indirect costs, Revenue streams, Total revenue, Profit link
3.4
Final accounts
Stakeholder needs, Profit and loss account, Balance sheet, Intangible assets, Depreciation
3.5
Profitability and liquidity ratio analysis
Profitability ratios, Liquidity ratios, Ratio interpretation, Improvement strategies
3.6
Debt/equity ratio analysisHL
Efficiency ratios, Working capital discipline, Gearing, Insolvency versus bankruptcy
3.7
Cash flow
Profit versus cash, forecasts, liquidity, investment timing, cash flow strategies
3.8
Investment appraisal
Payback period, ARR, NPV, time value of money, sustainability
3.9
BudgetsHL
Cost centres, Profit centres, Budget construction, Variance analysis, Decision-making
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