INTRODUCTION AND OUTLINE Needs of Owners, Investors, and Lenders 69. 1 .2 Needs of Top Managers Needs of Middle Managers of Line Functions 69. 1 .4 Needs of Staff Groups (Product Planners, Engineers, Market Researchers) 69. 1 .5 Needs of Accountants AFINANCIALMODEL BALANCESHEET Current Assets Current Liabilities Accrual Accounting Interest-Bearing Current Liabilities Net Working Capital Current Ratio Fixed Assets Total Capital Second Year Comparison . | CHAPTER 69 FINANCE AND THE ENGINEERING FUNCTION William Brett New York New York INTRODUCTION AND PROFIT AND LOSS OUTLINE 2097 STATEMENT 2105 Needs of Owners Financial Ratios 2105 Investors and Lenders 2098 Needs of Top Managers 2098 CASH FLOW OR SOURCE Needs of Middle AND APPLICATION OF Managers of Line FUNDS 2107 Functions 2098 Accelerated Depreciation 2108 Needs of Staff Groups Product Planners EVALUATING RESULTS AND Engineers Market TAKING ACTION 2111 Researchers 2099 Comparing Current Results Needs of Accountants 2099 with Budgets and Forecasts 2111 A FINANCIAL MODEL 2100 Identifying Problems and Solutions 2113 BALANCE SHEET 2100 Initiating Action 2114 Current Assets 2102 Current Liabilities 2102 FINANCIAL TOOLS FOR Accrual Accounting 2102 THE INDEPENDENT Interest-Bearing Current PROFESSIONAL ENGINEER 2114 Liabilities 2102 Simple Record-Keeping 2116 Net Working Capital 2103 Getting the System Current Ratio 2103 Started 2116 Fixed Assets 2103 Operating the System 2116 Total Capital 2104 Second Year Comparison 2104 CONCLUSIONS 2116 INTRODUCTION AND OUTLINE Finance is fundamental accounting is merely the set of procedures techniques and reports that make possible the effective execution of the finance function. Harold Geneen the legendary chairman of International Telephone and Telegraph included in his Sayings of Chairman Hal The worst thing a manager can do is run out of money. He meant it The corporate function of Finance is that function which makes the decisions or rather provides the recommendations to top management who really make the decisions that prevent the enterprise from running out of money. Accounting gathers organizes and disseminates information that make it possible to make these decisions accurately and timely. In modem business .
