summerfuel finance 2016 class 1 7 5
TRANSCRIPT
Summerfuel FinanceClass 1: 7-6-2016
Who Am I ? Kevin McWilliams - Mr. Mac [email protected]
My 3rd Summerfuel experience 32 years working in Corporate Treasury Management
John Hancock - Assistant Treasurer Manulife Financial - Assistant Vice President of Treasury
Education MBA from Suffolk University BBA – Marketing from the University of Massachusetts –
Amherst College Professor: 2nd career – Fisher & Quincy CollegeFinance, Accounting, International Mgt, Business Strategy, Marketing, Economics, Management
I am a lifelong BostonianI speak with a lot of slang and metaphors
If you don’t understand me, Say so !
Who are You?On the tent cards
1-Who are You 1st name BIG Phonetically if I may have trouble with it
2 - Where are you from ?
• Why Finance ?
Class RulesRespect Everyone !
MeYou ClassmatesYourself
Stay Focused on Class while in ClassNo Social Media
Participate – But Speak in TurnBe Open MindedThink ! That is why you are here
This Course is a Quick Plunge into Cold Water
Finance at the college level is proceeded by at least two accounting course and two economic courses – We are going jump right into it.
So if you don't get something right away; don’t worry about it
My AdviceYou will get out of this , what you put into it
!A taste of the U.S. college experience.Not as much hand holding
You are responsible for you!
Balance your Summerfuel experienceEnjoy the social aspect of the programBut leave something for the academics as well
Sleep enoughEat well
Explore and learn
Typical Class4:00 to 4:15 – Check on the Business World
4:15 – 4: 35 - Stock Picks Presented
4:35 – Topics of the Day – Exercises
5:00ish - Break
5:15 to 6:00 – Topics of the Day – Exercises
Stock PicksOnce week you will report / present a stock you
have decided is good one to buy.We will do one in class tomorrowTomorrow you sign up for the day of the week
you will share your stock – starting next week.
AssessmentsGrading Event TotalBusiness Plan Document 20Business Plan Presentation 15 3 Weekly Quizzes 363 Weekly Stock Picks Paid in KMAC Bucks 15KMAC Bucks Other 15Total 101
The Plan & Materials Look in Your Workbook
Helpful InfoWorksheets
Etc
Slides will be on Slidesharehttp://www.slideshare.net/
KevinMcWilliams/
KMAC Bucks Class Rule infractions will be fined by all at Mr Mac’s discretion
KMAC the King will decide “ Its Good to Be King” Late, social media, rudeness, speaking out of turn Whatever I feel something is disrespectful It may seem unfair, too bad
Counterfeiting of KMAC bucks will result in the forfeiture of all KMAC bucks and significantly adverse you grade.
You can borrow from the Kingdom of KMAC (the lender of last resort) but at steep interest rate of 100% per day
Correct answers in Quiz Game will be awarded with KMAC bucks
Upon distribution KMAC bucks will be signed and dated by the recipient and subsequently signed and date when transferred
The money can be exchanged among students to get help on quizzes, presentations etc.
At the end of the course the KMAC Bucks will be as a component of grades
If You Lose Your KMAC Bucks ?
It’s like burning it. Kiss it goodbye
Some ChoresKMAC Bucks1. Sign them2. I will stamp them
Binder 3. Name on the cover4. Decorate it if you want
Capture my email:
Bring Your Best Electronic Gadget to Class
Macbooks, laptops, tablets, smartphones, etc.Not for Social Media etc., but to research and
write.You are business people in the year 2016You need to be plugged in !
Basic EconomicsSupply and Demand
The concept of Supply and Demand drive all business and commerce across the world.
There is a price for everything and it’s driven by Supply and Demand
Types of Business PROPRIETORSHIP
A proprietorship is owned by one individual.
70% of business entities in the U.S. are proprietorships.
They are easy and cheap to organize.
Resources are limited to those of the owner.
Used by small businesses.
Types of BusinessPARTNERSHIP
A partnership is similar to a proprietorship except that it is owned by two or more individuals.
10% of business organizations in the U.S. (combined with limited liability companies) are partnerships.
Combines the skills and resources of more than one person.
Types of BusinessCORPORATION
A corporation is organized under state or federal statutes as a separate legal taxable entity.
Generates 90% of business revenues.
20% of the business organizations in the U.S.
Ownership is divided into shares, called stock.
Can obtain large amounts of resources by issuing stock.
Used by large businesses.
Stuff to Run A Business1. Think of a Business that you may wish to start2. Maker a long list of all of the stuff that you
would need3. How much it would cost for each item4. Total the amount
Some Accounting You need to Understand Accounting to be
able to do Financial WorkBalance SheetIncome Statement
Balance Sheet
AssetsA resource with economic value that an
individual, corporation or country owns or controls with the expectation that it will provide future benefit.
Assets are bought to increase the value of a firm or benefit the firm's operations. Think of an asset as something that can
generate cash flow, regardless of whether it's a company's manufacturing equipment or an individual's rental apartment
LiabilitiesA company's legal debts or obligations that
arise during the course of business operations Liabilities are used to finance operations and
pay for large expansions. Make transactions between businesses more
efficient. Current liabilities are debts payable within
one yearLong-term liabilities are debts payable over a
longer period.
Owners EquityThe owner’s equity is simply the owner’s
share of the assets of a business.
The Accounting Equation
The resources owned by a
business
Assets = Liabilities + Owner’s Equity
THE ACCOUNTING EQUATION
Assets = Liabilities + Owner’s Equity
THE ACCOUNTING EQUATION
The rights of creditors are the
debts of the business
The rights of the owners
Assets = Liabilities + Owner’s Equity
THE ACCOUNTING EQUATION
Income Statement
Lets See if You Get It
For Tomorrow Think of a Business that You Wish to Start or Run
as CFO/CEO
Then the Stuff you will need to run it