Review on Financial Management at Sentrep last February 26, 2013

 Room 402 APS, H de la Costa Campus  February 26, 2013

Our schedule last night included:  SR, Case Analysis of Red Crab, and Review of Financial Management.   We were able to do the SR:  "Go Negosyo " by Athens Cruz and "Creativity" by Jaypee Eugenio.

Special reports

Go Negosyo, of which ProfJorge is a part of, is not involved in financing but is involved in changing mindset and or creating entrepreneurial mindset among Filipinos.  Take note that our FDI is practically nil;  yet Philippines is a hotbed of economic growth.  Why - because many locals are taking risks;   many are betting with their own money to start their projects/businesses.  And this is entrepreneurship in action.  The Negosyo efforts paid off, in a way.  The 7.1% economic growth, the PHL as no 6 in the world's fastest growing economy is a dividend, a pay off.

The creativity report mentioned so many books on creativity and many relevant information from Edward de Bono to Einstein, George Bernard Shaw, etc. and many contemporary businesmen and creative people:  Steve Jobs among them.  (Be crazy;  make a dent in the universe.)  Ideas and application of the idea are essential parts of creativity (thus those who fail to apply fail to get their NU 12 posted.

Financial Management

I mentioned some truism on financial management:

l. " The numbers will set you free" -  Harold Geneen

2.  Cash is king.

3.  "You can make a lot of mistakes, and running out of cash is not one of them."

4.  The determination of the bottom line isnt accurate.  The company policy on recognition of income and expenses can vary the outcome.  Some company comptrollers are sometimes cooks or doctors.

5.  The concepts:  cash flow statement, balance sheet, income statement, funds flow were discussed in a whiteboard infographic.  A template shall be sent the students to study and apply.