finance

lease respond to the following:

• Rate the three (3) most important concepts that you learned in this course in order of importance (one (1) being the most important; three (3), the least). Provide a rationale for your ratings.
• Propose two (2) applications of knowledge that you have learned in this course to your current or a future position.

Peer

Good Morning Class,

The first of the three most important concepts I've learned throughout this course is the significance of a financial analysis. The analysis of financial statement is important because it compares a firm's performance to others within the same industry and it helps to evaluate trends in a firm's financial position over a period of time. A financial analysis can be used by managers to uncover any areas that may need special attention and lenders use it to determine whether or not a company is credit worthy. The second of the three most important concepts is understanding financial statement and other reports. A company's financial statements gives a variety of financial information that investors and lenders use to determine the financial performance. The different financial reports focuses on different areas such as a company's cash flows, operating results (such as sales and profits), and shareholder's equity. The third of the three most important concepts learned in this course is the importance of a cash budget. The cash budget is used by management to determine an approximate amount of cash on hand at the start of a budget period and provides an estimated cash inflows and outflows. Additionally, the cash budget highlights a company's possible income or debt for a time period. The cash budget helps uncover a company's future financing needs.

One area of knowledge that will be of use to me in future positions is understanding the time value of money. The time value of money is an important tool when investing. Investors find the time value of money important because a dollar on hand today is worth more than a future dollar and that dollar today can be used to invest and earn interest or capital gains. A second area of knowledge that will be used in future positions is capital budgeting. Capital budgeting summarizes planned investments of a company's assets that will last longer than a year and is the whole process of analyzing projects and deciding which ones to accept.