Module 1: Fundamentals of Finance

Introduction: Module 1 introduces the essential concepts of finance, focusing on understanding and analyzing financial statements and the time value of money. Students will explore the purpose and components of key financial statements, including the balance sheet, income statement, and cash flow statement. This foundational knowledge will be critical for evaluating a company’s financial health. Additionally, the module covers the concept of the time value of money, a crucial principle in financial decision-making that explains how the value of money changes over time due to its potential earning capacity.

Learning Outcomes:

1. Understand Financial Statements: Identify and interpret the components and purposes of the balance sheet, income statement, and cash flow statement.
2. Analyze Financial Health: Use financial statements to assess a company’s financial position, performance, and cash flow.
3. Apply Time Value of Money: Calculate present and future values, and understand the implications of time value on investment and financing decisions.