Maricopa Community Colleges  MGT218   19886-19942 
Official Course Description: MCCCD Approval: 11/23/93
MGT218 19886-19942 LEC 3 Credit(s) 3 Period(s)
Credit Management Administration II
Application of credit management principles, financial analysis, theory and use of liquidity, solvency, efficiency and profitability ratios, and credit law. Prerequisites: MGT217.
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MCCCD Official Course Competencies:
 
MGT218   19886-19942 Credit Management Administration II
1. Define the various components of a financial statement. (I)
2. Contrast the four types of financial analysis ratios and their applications. (I)
3. Analyze a financial statement using the formulas from each of the four types of ratios and evaluate the results. (I)
4. Use a credit matrix to evaluate a new account. (I)
5. Prepare a list of the documents needed for filling a law suit against a delinquent debtor. (II)
6. Trace the path a civil suit takes as it moves through the stages toward judgement. (II)
7. Classify the types of people who can use a 20-day preliminary notice. (II)
8. Compare State and Federal construction bonds and describe the steps in filing against them. (II)
9. Describe security methods in establishing credit for a marginal customer. (II)
10. Given a credit case including financial statement, company background, credit application, references, economic and market conditions, analyze the credit worthiness of the customer. (III)
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MCCCD Official Course Outline:
 
MGT218   19886-19942 Credit Management Administration II
    I. Financial Analysis
        A. Theory of Use
          1. Why Use Ratios: Four Types and Application
          2. Cash Flow Control
          3. Financial Accounting Review
        B. Liquidity Ratio
          1. Current Ratio
          2. Quick Ratio
          3. Asset Ratio
          4. Sales to Debt Ratio
          5. Inventory to Working Capital
          6. Debt and Equity
        C. Solvency Ratios
          1. Funded Debt to Net Working Capital
          2. Current Debt to Net Worth
          3. Current Debt to Net Working Capital
          4. Current Debt to Inventory
          5. Fixed Assets to Net Worth
          6. Capital Assets to Net Worth
        D. Efficiency Ratios
          1. Asset Turnover
          2. Inventory Turnover
          3. Accounts Receivable Turnover
          4. Accounts Payable Turnover
          5. Working Capital Turnover
          6. Fixed Assets Turnover
          7. Sales Inventory Turnover
          8. Accounts Payable to Sales
          9. Accounts Payable to Inventory
          10. Employee Performance Percentages
        E. Profitability Ratios
          1. Return on Sales
          2. Gross Profit Relationship
          3. Sales Profit Relationship
          4. Return on Assets
          5. Return on Investment
          6. Profit to Net Working Capital
        F. Source and Use of Funds
        G. Use of Credit Matrix for Evaluation
      II. Credit Law
          A. Legal Remedies
            1. Requirement for Suit
            2. Steps as Suit Proceeds
            3. Judgement and Post Judgement Procedures
          B. Construction Law
            1. Mechanics Liens
              a. Using 20-Day Notice
              b. Lien Foreclosures
            2. Bonds
              a. Government Jobs - State and Federal
              b. Payment Bonds
              c. License Bonds
          C. Using Secured Transactions
            1. Guarantees
            2. Security Agreements
            3. Uniform Commercial Code
            4. Recording Requirements
            5. Contracts
          D. Bankruptcy
            1. Recent Cases
            2. Update on New Legislation
        III. Application of Credit Mangement Principles
            A. Analysis of Case Studies
            B. Factors For Determining Credit Worthiness
              1. Financial
              2. Four "C's" (Character, Capacity, Capitol, Business Considerations)
              3. Company Policy
              4. Industry Standards
              5. Market Trends
              6. Economic Outlook
              7. Profitability
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