Maricopa Community Colleges  MGT177   19886-20086 
Official Course Description: MCCCD Approval: 07/22/08
MGT177 19886-20086 LEC 2 Credit(s) 2 Period(s)
Applied Credit Management
Application of credit management procedures to the diagnosis and solution of credit problems; financial statement analysis, evaluation, ratios, and credit management specialties.
Prerequisites: MGT176.
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MCCCD Official Course Competencies:
 
MGT177   19886-20086 Applied Credit Management
1. Gather information necessary to analyze financial stability. (I)
2. Identify the use and function of reporting systems in financial analysis. (I)
3. Demonstrate basic accounting methods inherent to the credit management field. (II)
4. Prepare various types of financial statements. (II)
5. Identify the importance of financial analysis to verifying credit risk. (II)
6. Perform accounting and financial calculations in order to analyze financial stability. (II)
7. Calculate liquidity ratios, solvency ratios, efficiency ratios, and profitability ratios. (III)
8. Given financial statements of example companies, make decisions on granting credit and credit extensions. (III)
9. Define receivable portfolio evaluation, cash budgets, financial projections, export credit, and documentary credit and discuss the applications of each. (IV)
10. Describe the use and function of financial factors, non-financial factors, and financial statements in credit analysis and evaluation. (I-IV)
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MCCCD Official Course Outline:
 
MGT177   19886-20086 Applied Credit Management
    I. Financial Evaluation
        A. Influencing Factors
          1. Character
          2. Capacity
          3. Capital
          4. Business Conditions
        B. Non-Financial Factors
        C. Statement Information
        D. Valuations
        E. Terms of Sale
        F. Reporting System
          1. Computer Applications
          2. Management Information Systems (MIS)
          3. Computer vs. Manual
      II. Financial Analysis
          A. Audits
            1. Role
            2. Types
          B. Basic Accounting
            1. Terminology
            2. Bookkeeping
          C. Financial Statements
            1. Balance Sheet
            2. Income Statement
            3. Journal
            4. "T" Accounts
            5. Ledgers
            6. False Statements
          D. Analysis
            1. Trial Balance
            2. Break-Even
            3. Change Interpretation
          E. General Financial Analysis
            1. Equity
            2. Operating Statement
            3. Comparative
            4. Working Capital
            5. Cash/Funds Flow
            6. Graphic
            7. Sales/Probability
        III. Credit Management Applications
            A. Ratio Measure Calculation
              1. Liquidity Ratio
              2. Solvency Ratio
              3. Efficiency Ratio
              4. Profitability Ratio
            B. Example Companies
              1. History
              2. Financial Statement
              3. Decision Making
              4. Questions of Credit Extension
          IV. Credit Management Specialties
              A. Receivable Portfolio Evaluation
              B. Cash Budget
              C. Financial Projections
              D. Export Credit
              E. Documentary Credit
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