Field Exercise: Your Role in Financial Management

This is a two-part exercise. In Part 1, you will work on your own to examine some case study scenarios. In Part 2, you will meet with your supervisor to learn more about your role in Financial Management. Only forward Part 1 of the field exercise to your supervisor before you meet for Part 2.

Part 1 To complete Part 1 of this field exercise:

1. Review the Case Study 1 on the next page. Look for positive and negative trends and highlight them. Then describe the trends you highlighted in the space provided here.

2. What expenses (in dollars) would you expect to increase in your P&L if you increase Sales dollars?

3. What percentages should change with the increased sales?

4. A price increase that equals an increase in raw materials will do what to operating profit dollars as well as a percentage of sales?

1 Case Study 1

2 Part 2 Meet with your supervisor (in person or by phone). During the meeting, take notes as you work together to do the following:

 Review your answers to Part 1 of this field exercise. Ask any questions you may have.  Obtain the most current P&L and General Ledger for the region from your Regional Manager, as well as copies of the company DSI and DSO metrics from the intranet.  Review the following items that have an impact on the sample balance sheet that you printed earlier in this lesson:  The DSO, DSI, and how to track receivables.  The Capital Item Requests process and how to complete the ROI Worksheet.  Strategies that you and your direct reports could implement to have a positive impact on the Balance Sheet.  Review the P&L together and:  Go over each line item and identify its source and responsible department.  Identify ways that you and your direct reports can have a positive impact on the P&L.  Review the General Ledger and determine why there is a variance or issue.  Discuss how the Balance Sheet and P&L are used to assess how well you and your direct reports are managing finances, when you will be notified of trends found, and so on.  Discuss how you and your direct reports can positively manage travel expenses. Review the Expense Guidelines and Travel Policy.  Ask any other questions you may have about what you’ve learned in this lesson.

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