Mount
ISA Mines ( MIM )http://www.mim.com.au/releases/00_corpfile-nws.html
Topic 2 Financial Planning and Management
Mount
ISA Mines ( MIM )
http://www.mim.com.au/releases/00_corpfile-nws.html
This is an announcement from the General Manager of the Board of MIM ( Mount Isa Mines ) which is the firm that we have chosen as a case study for topic 2. This announcement discusses MIM business strategy in the coming year ( 2001 ). In your module booklet there is a section called 'Objectives of financial management.' and the necessary financial planning required to achieve the objectives. The MIM announcement is an example of the objectives of financial management .Read the announcement carefully and try to identify the financial objectives of the company. Try and identify any strategies that are going to be used by MIM to reach these objectives.
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Part 2 Financial
Markets Relevant to Business Financial Needs
Financial
Institutions
Australian
Stock Exchange
http://www.asx.com.au/nd50/nd_ISAPI_50.dll/asx/floats/UpcomingFloatDetail.jsp?asxcode=AHT
The ASX provides a way of obtaining
finance to commence new businesses, mostly by issuing shares.
This is the Floats part of the ASX site, where the stock exchange
informs the investment community of new companies that wish to be
listed on the Stock exchange. Pick one of the companies to be listed
( or floated ) and identify
* How much finance the new company wants
to raise from shareholders?
* The operations that the new business wants to use the finance
for?
* Whether the finance will be long term or short term?
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Topic 2 Financial Planning and Management
Part 3 Management of
Funds
ANZ
introduction to Finance
http://www.anz.com/business/finance/borrowing/borrowing.asp
The ANZ has an excellent site to help you learn about the management of funds. The ANZ site about finance shows you the different ways that you can borrow money from the various forms of borrowing to the various financing needs of business. You can browse the site to see how a business can use overdrafts, commercial bills, invoice factoring to improve the business short terms working capital requirements. You can also read descriptions of ways to finance business expansion like cash advances and Property and Construction Finance.
Commercial
Bill example
http://www.anz.com/search/Search.asp?qu=commercial+bill
A brief description of a commercial bill and an example from the ANZ borrowing site. Search for some other ways of borrowing.
Finance
Lease description
http://www.anz.com/australia/business/finance/AboutLease.asp
A brief description of a finance lease and the how finance leases are used to finance vehicles and equipment.
MiM
( Mount ISA Mines )
http://www.mim.com.au/presentation-13.html
This is MIM's presentation to investors
and potential investors about MIM's production and financial
operations. Open the file and choose those slides that show
* gearing ( What is MIM's gearing )
* sources of funds
* share price
* costs and reductions in costs
* corporate strategy
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Part 4 Using
Financial Information
Telstra
Analysing a Revenue ( Profit and Loss ) Statement
http://hsc.csu.edu.au/business_studies/financial_planning/telstra/profitandlosstelstra.htm
The HSC Online website has a worked example on analysing the profit and loss statement for Telstra. The example shows you the major aspects of Revenue Statements and how they can be analysed to identify the businesses profitibility.
Toys
"R" Us
http://www.toysrus.com/
Remember Toys "R" Us from the Preliminary course. The site offers a large amount of information to study accounting and finance concepts. Open the main menu and choose Investor relations. From Investor relations you will be able to
*open quotes to obtain the current share
price
*open financial highlights to identify the key recent financial
highlights
*open financial statements to inspect the revenue or profit and loss
statement
*open the financial statements to inspect the Balance Sheet
*open the letter to investors about predicted movements in the share
price.
Make a quick list of the ratios that you could work out from the
Balance Sheet and
Revenue information that is on the site.
MiM
( Mount ISA Mines )
http://www.mim.com.au/presentation-13.html
Download Up to date Financial Information from the MIM site. See if the ratios that have been prepared in the module booklet have changed from when the notes were written.
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Part 5 Effective
Working Capital Liquidity and Part 6 Effective Financial
Planning
Working
Capital A Worked example for You to Follow
http://hsc.csu.edu.au/business_studies/financial_planning/working_capital/Effect_working_capital.htm
This is an excellent worked example of calculating working capital from the HSC Online Business Studies site. There is a brief example and explanation of working captial and then a number of worked examples.
State
Government's business entry site
Under construction
Managing working capital is an important aspect of business management. This guideline from the State department sets out some of the most important ideas in cash flow management
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Topic 2 Financial Planning and Management
Part 7 Ethical
and Legal Aspects
Australian
Securities and Investment Commission ASIC
http://www.asic.gov.au/about/
This part of the ASIC site describes the
role of ASIC in setting and enforcing ethical and legal
standards for business ( especially companies ). Read the site
carefully and familiarize yourself
with the role of the ASIC. Make a summary of the tasks that ASIC
performs.
Australian
Securities and Investment Commission's Roles
http://www.asic.gov.au/about/index.cfm-id=2149E864-DF4E-11D3-A4C9009027DE39A4&Method=Full&story=yes.htm
This is a summary of ASICS roles in monitoring Company and Business Behaviour
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Topic 2 Financial Planning and Management
Part 8 Some
Multiple Choice Items For You
Multiple choice questions.
1. Commercial bills
2. Gross profit margin can be calculated as follows
3. Equity financing is likely to occur if:
4. A cash flow report shows the:
5. Hedging is concerned with:
6. The institution most likely to finance factoring and leasing are:
7. The most likely source of internal funds are:
8. Biddle's Boats working capital ratio is .9. This means that Biddle's Boats is:
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