Finance for Absolute Beginners
It’s the beginning of the day and you’re just settling into your first leadership team meeting. The CFO is about to review the organization’s financial report. You’re familiar with a few of the terms but you think to yourself, “I am not a numbers person”. Here’s the good news, you can be! This course is designed for HR professionals with no or limited financial background. The overall goal is to gain a better understanding of business and financial concepts to help build a foundation for becoming a strategic business partner.
It’ll cover the interpretation of important sections on financial statements in a simple and understandable way…by running your own lemonade stand!
It’ll also help you identify what drivers impact the organization’s performance and how you, in HR, influence those results. Take this course to become more comfortable with numbers, learn the basics and have some fun!
HR Jetpack is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1.0 PDCs for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit shrmcertification.org.
This activity, has been approved for 1.0 HR (Business) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
The use of the HRCI seal confirms that this activity has met HR Certification Institute's® (HRCI®) criteria for recertification credit pre-approval.
Title: Welcome to Day 2
Module: Day 2
We are now ready to begin Day 2 of our Lemonade Stand business. Let’s check the weather forecast.
Before we buy supplies, let’s check the weather forecast.
There is a 30% chance of rain. Demand may be 5-10 cups less.
We are at the grocery store. The cost of supplies to make 1 cup of lemonade is $.40.
With the expected weather forecast, we decide to buy supplies for only 20 cups of lemonade. We pay $8 in cash.
How does this impact our financial results?
When we buy supplies and pay cash at the time of purchase and with our assumption of no inventory, one side of the transaction is, cash is decreased. The other side of the transaction is, expenses are increased.
Let’s see how this transaction maps on the financial statements.
This is our income statement and the balance sheet with the numbers from Day 1. Purchasing supplies for $8 is reflected as a negative $8 under cash reflecting decrease in cash and as a positive $8 under expenses reflecting increase in expenses.
Let’s find out the demand for our lemonade on Day 2! How many cups did we sell?
We sold 20 cups of lemonade!
Our price was $1 per cup of lemonade.We sold 20 cups for a total of $20 in cash. How does this impact our financial results?
When we sell lemonade and receive cash at the time of sale and with our assumption of no inventory, one side of the transaction is, cash is increased, the other side of the transaction is, sales are increased.
Let’s see how this transaction maps on the financial statements. Selling $20 worth of lemonade is reflected as $20 increase in cash and $20 increase in sales.
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Anna designs and delivers learning and change facilitation experiences that speak to the learner and inspire people and organization reach for potential and create an impact with. She applies engaging, immersive, simulation- and game-based methodology and developments in neuroscience, psychology and concepts of motivation to learning design and change...