1. Financial Markets and Financial Management in CR Dates and Topics January 11Introduction January 26Stock Exchange January 28Public Finance – Health Care February 4Expected Impact of Euro on the Czech Economy

2. Balance sheet ASSETS short term Cash and Marketable securities Account receivable Inventory ASSETS long term Gross property, plant & equipment –Accumulated depreciation Net property, plant & equipment LIABILITIES short term Account payable Short term debt Accruals LIABILITIES long term Long term debt Preferred stock Equity

3. Cash and Marketable Securities +enough alternative instruments to choose from. -relatively high fee structure

4. Receivables +Approaching level of standardization expected in modern business environment. -Relatively large variability around agreed terms of payments

5. Inventories +Introduction and use of modern methods of inventory financing (field warehouse financing, etc.) -Modern methods of inventories management (EOQ, etc.) are confined to large companies only.

6. Accounts Payables +heightened awareness of cost of trade credit as a source of financing. -too often misused as a source of financing with a disregard for buyer/ seller relationship.

7. Short term debt +Improvement in the variety of short term borrowing options from banking sector. -banks don’t analyze borrower need and tend to concentrate only on large companies with good tracking record.

8. Acquisition of plants and equipment +Large companies use modern capital budgeting decision tools. +Market for leases relatively well developed -Medium size and small companies use payback method at best, if at all.

9. Long term Debt +Corporate bond market is beginning to take of. Large corporation construct their offerings up to par with developed financial markets standards. -Market is still too thin a for many companies too expensive.

10. Equity source of financing +In past two years IPO shares made it to Prague stock exchange (Zentiva). Hopefully, this trend will continue. -Unfortunately IPO’s are too few and far between, even as compared with equity markets in other “new market economies” (Poland).