William G. Droms, FINANCE AND ACCOUNTING FOR NONFINANCIAL MANAGERS, Fifth (2003) edition
The first four editions of Finance and Accounting for Nonfinancial Managers have been used as the basis of one to four day executive development courses, as a self-study guide by individual readers, and for a semester long college level continuing education and for-credit courses. Many individuals also have found this book useful as pre-program reading to get up to speed on key finance and accounting skills before returning to school to pursue an MBA degree. The book is particularly appropriate for community college courses, sophomore-level college courses, or upper division level courses aimed at non-business majors. The book also has been used in college-level courses in small business management and entrepreneurship.
A variety of teaching aids are available to instructors and other readers of this book. Six sets of teaching materials are available in hard copy from the author or directly from the author’s website (under the faculty directory name of William Droms on the msb.edu website at the McDonough School of Business at Georgetown University):
1. This overall “Instructors Teaching Guide”
2. Excel spreadsheets with copies of all the income statements, balance sheets, forecasted financial statements, and other financial exhibits in the book.
3. Chapter-by-chapter outlines of the key points of each chapter that can be used as the basis for developing personalized lecture notes.
4. Programmed self-testing exercises for each chapter. These exercises may be completed by students outside of normal class time or they may be used in class to reinforce material in the text.
5. Practice problems and answers for the chapters that illustrate problem-solving techniques (chapters 2, 4 through 13, 15 and 16). These problems may be assigned as homework problems or they may be used in class to illustrate the material in the text. For short courses, the problems probably should be completed in class. They may be worked individually or in groups and then used as the basis for classroom discussion.
6. Solution guides to programmed self-testing exercises and problems.
Two suggested outlines for a three-day and a four-day executive development course are provided in this guide. The three-day outline omits coverage of chapter 5 (Special Topics in Accounting). The three-day outline can be modified to present in a two-day format by deleting the detailed accounting coverage (chapter 4) and reducing the amount of in-class time allowed for problem solving. A two-day format might also require deletion of some additional chapters, most likely chapters 9 and 10 (Working Capital Policy and Working Capital Management), and chapter 16 (Valuing Closely Held Businesses).
The four-day outline allows coverage of all chapters in the book. The four-day course can be modified into a five-day format by adding more in-class opportunities for group problem solving work or in-class work on programmed self-testing exercises.
The executive development course outlines are structured around an 8-hour day, with one hour for lunch and two 15-minute breaks, one in the morning and one in the afternoon. The outlines alternate lecture periods, problem-solving periods, and breaks. Most people find finance and accounting to be a rather dry subject and course planners must be mindful of the old guideline that “the mind can only absorb what the seat can endure.” The alternating pattern helps to keep the course moving and aids in preventing anyone from settling down for a nap.
A suggested outline for a once-a-week continuing education course also is provided. The continuing education outline assumes a 15-week course that meets once a week for two hours. The suggested outline can be easily altered to allow for other time patterns.
9:00- 9:45 Scope and Nature of Finance (1)
Tax Environment (2) Lecture
9:45-10:00 Problem 2.1 Problem
10:00-10:30 Introduction to Financial Statements (3) Lecture
10:30-10:45 Break
10:45-12:00 Introduction to Financial Statements (3)
Accounting Financial Information System (4) Lecture
12:00- 1:00 Lunch Break
1:00-1:30 Accounting Financial Information System (4) Lecture
1:30-2:30 Problems 4.1, 4.2, 4.3 Problems
2:30- 3:00 Financial Statement Analysis (6) Lecture
3:00-3:15 Break
3:15-3:45 Financial Statement Analysis (6) Lecture
3:45- 4:30 Problem 6.1 Problem
4:30- 5:00 Financial Forecasting and Cash Budgeting (7) Lecture
9:00- 9:30 Financial Forecasting and Cash Budgeting (7) Lecture
9:30-10:15 Problem 7.2 Problem
10:15-10:30 Break
10:30-11:15 Breakeven Analysis (8) Lecture
11:15-11:30 Problem 8.1 Problem
11:30-12:00 Working Capital Policy (9) Lecture
12:00- 1:00 Lunch Break
1:00-1:30 Problem 9.1 Problem
1:30-2:00 Working Capital Management (10) Lecture
2:00-2:30 Problems 10.1, 10.2, 10.3 Problems
2:30- 3:00 Mathematics of Compound Interest (11) Lecture
3:00- 3:15 Break
3:15- 4:00 Mathematics of Compound Interest (11) Lecture
4:00-5:00 Problems 11.1 to 11.7 Problems
9:00-10:00 Capital Budgeting (12) Lecture
10:00-10:45 Problems 12.1, 12.2 Problems
10:45-11:00 Break
11:00-11:45 Cost of Capital (13) Lecture
11:45-12:00 Problem 13.1 Problem
12:00- 1:00 Lunch Break
1:00- 1:30 Sources and Forms of Long-Term Financing (14) Lecture
1:30-2:30 Valuation (15) Lecture
2:30- 3:15 Problems 15.1, 15.2 Problems
3:15-3:30 Break
3:30-4:30 Valuing Closely Held Businesses (16) Lecture
4:30- 5:00 Course Summary Summary
Day 1 Topic and Chapter Number
9:00-10:00 Scope and Nature of Finance (1)
Tax Environment (2) Lecture
10:00-10:30 Problems 2.1, 2.2 Problems
10:30-10:45 Break
10:45-12:00 Introduction to Financial Statements (3)
Accounting Financial Information System (4) Lecture
12:00- 1:00 Lunch Break
1:00- 2:00 Accounting Financial Information System (4) Lecture
2:00-3:00 Problems 4.1, 4.2, 4.3 Problems
3:00-3:15 Break
3:15-4:15 Special Topics in Accounting (5) Lecture
4:15-4:30 Problems 5.1, 5.2 Problems
4:30- 5:00 Financial Statement Analysis (6) Lecture
Day 2 Topic and Chapter Number
9:00-10:00 Financial Statement Analysis (6) Lecture
10:00-10:30 Problem 6.1 Problem
10:30-10:45 Break
10:45-11:15 Problem 6.1 (continued) Problem
11:15-12:00 Financial Forecasting and Cash Budgeting (7) Lecture
12:00-1:00 Lunch Break
1:00- 1:30 Financial Forecasting and Cash Budgeting (7) Lecture
1:30-3:00 Problems 7.1, 7.2 Problems
3:00- 3:15 Break
3:15-4:00 Breakeven Analysis (8) Lecture
4:00-4:30 Problems 8.1, 8.2 Problems
4:30- 5:00 Working Capital Policy (9) Lecture
Day 3 Topic and Chapter Number
9:00- 9:30 Working Capital Policy (9) Lecture
9:30-10:00 Problem 9.1 Problem
10:00-10:30 Working Capital Management (10) Lecture
10:30-10:45 Break
10:45-11:15 Problems 10.1, 10.2, 10.3 Problems
11:15-12:00 Mathematics of Compound Interest (11) Lecture
12:00- 1:00 Lunch Break
1:00-1:45 Mathematics of Compound Interest (11) Lecture
1:45-2:45 Problems 11.1 to 11.7 Problems
2:45- 3:00 Break
3:00-4:15 Capital Budgeting (12) Lecture
4:15-5:00 Problems 12.1, 12.2 Problems
Day 4 Topic and Chapter Number
9:00-9:45 Cost of Capital (13) Lecture
9:45-10:30 Problems 13.1, 13.2 Problems
10:30-10:45 Break
10:45-12:00 Valuation (15) Lecture
12:00- 1:00 Lunch Break
1:00- 1:30 Problems 15.1, 15.2 Problems
1:30-2:30 Sources and Forms of Long-Term Financing Lecture
2:30- 3:30 Valuing Closely Held Businesses (16) Lecture
3:30-3:45 Break
3:45-5:00 Catch Up, Wrap Up and Course Summary Summary
CONTINUING EDUCATION COURSE OUTLINE
Week Chapter Topic and Number
1 Scope and Nature of Managerial Finance (1)
The Tax Environment (2)
2 Introduction to Financial Statements (3)
3 Accounting—A Financial Information System (4)
4 Accounting—A Financial Information System (4 continued)
5 Special Topics in Accounting (5)
Financial Statement Analysis (6)
6 Financial Statement Analysis (6 continued)
Financial Forecasting and Cash Budgeting (7)
7 Financial Forecasting and Cash Budgeting (7 continued)
Breakeven Analysis for Profit Planning (8)
8 Working Capital Policy (9)
Working Capital Management (10)
9 Mathematics of Compound Interest (11)
10 Mathematics of Compound Interest (11 continued)
11 Capital Budgeting (12)
12 Cost of Capital (13)
Sources and Forms of Long-Term Financing (14)
13 Sources and Forms of Long-Term Financing (14 continued)
Valuation of Financial Assets (15)
14 Valuing Closely Held Businesses (16)
15 Course Review and/or Final Examination