Bill Mooney spoke to our class to explain finance. He started his financial career in Los Angeles, where he worked as a Assistant National Bank Examiner for the Office of the Comptroller of the Currency. The Comptroller of the Currency is a part of the U.S. Treasury Department. He then switched industries by becoming a financial analyst, cost accounting manager and assistant controller for a private industry. This private industry was for an electronic component manufacturer and agribusiness. He moved in the company to Senior Vice President-Finance and then onto President of records management business. As President of records management business, Mooney completed acquisitions and divestitures of business. He then served seven years as the Chief Financial Officer of the publicly traded company, Sylvan Inc. Sylvan Inc. is a NASDAQ traded agribusiness. It also has a global presence in biological products industry. He then served as Executive Vice President and Chief Financial Officer of Calgon Carbon Corporation, FEI Company, and Michael Baker Corporation. Calgon Carbon Corporation is a global producer of water treatment products. FEI Company is a global producer of equipment for the semiconductor industry. Michael Baker Corporation is an engineering and oil field services company. He eventually retired from his finance career as Executive Vice President and Chief Financial Officer for Transfield Services North America and Fenner Dunlop Americas. At this company, he completed multiple acquisitions to support each of the company’s business expansion into the Americas.
Professor Mooney spoke to us about finance, which is anything that includes planning for, obtaining and managing a company's funds, in relation to business. He talked about different careers in finance, such as commercial banking, corporate finance, investment industry and or graduate education or certification. In corporate finance, which is what Mooney's career was, you analyze industry trends, evaluate corporate investment, financial planning, evaluate acquisitions and review top managers' needs. Mooney explained how a financial manager's job is to determine the amount of money a company needs, how and where it will gather the funds for those needs and how and when the company will repay those funds. Mooney described is journey throughout the business world, where he started at McDonald's, went to US Treasury, worked for a private industry, then worked as records management, then became a publicly traded company CFO, a subsidiary CFO and finally worked in consulting and instructing of finance. He went on to explain how the different parts of his journey applied to his curriculum in school. This was beneficial because as a student, sometimes you believe that the curriculum will not aide you in your career. He also added what roles finance played in his journey through the business career. He talked about bank regulations, where periodic examinations should occur every 2 years or more frequently. He explain his acquisitions and the differences between equity financing and debt financing.
This lecture related to the finance chapter in the book. The financial manager has many roles. First, the financial manager has to create a financial plan, which is a document that calculates the amount of funds a company needs for a specific period of time and has a strategy to gather those funds (Collins, 2014). The financial manager also has to estimate funds that the company possesses (Collin, 2014). There are several ways to obtain the funds a company needs for a specific period, such as personal assets, loans from family and friends, or several different types of bank loans (Collins, 2014). There are two types of financing, which are equity financing and debt financing (Collins, 2014). Equity financing is raising the needed capital through a sale of stock, whereas debt financing is raising the capital by selling bonds (Collins, 2014). Stock could be common stock or preferred stock (Collins, 2014). The one thing that Mooney left out that is important to finance is budgeting. There are cash budgets, which project the flow of cash and capital budgets, which shows the expenditure for major equipment (Collins, 2014).
In the article, "Measure Profit to People-All People," Michael O'Leary describes how companies can earn millions of dollars in revenue while at the same time losing millions of dollars. He examines if these companies are truly profitable and to whom they are profitable for (O'Leary, 2017). Profit is generally a business expenses subtracted from its revenue (O'Leary, 2017). He states that public companies make profit not for the company itself, but rather its investors (O'Leary, 2017). He explains how traditional financial accounting measures treat wages similarly to raw materials and how this needs to change, so they business can be profitable for its people, which are its employees rather than investors (O'Leary, 2017). To do this, he describes how traditional methods can be used along with the addition of salaries and benefits to the companies employees. O'Leary (2017) states. "Profit to people can show the full financial impact a company has." But one problem with focusing of profit for the people is that the profit for investors, which determines the financial health of a company, is lost (O'Leary, 2017). This relates to Bill Mooney's guest lecture because it shows the people side of finance instead of just the business side. When making financial decisions, the best financial decisions for the company are made. What happens to the people? Are they affected at all? An important decision for financial officers to make are acquisitions and mergers, but how does that affect the current employees and the employees of the company they are acquiring or merging with? This article also relates because it states how important profit for investors is important for financial health of the business.
Collins, K. (2014). Exploring business(Vol. 2.1) [V2.1]. Retrieved April 24, 2018, from
https://scholar.flatworldknowledge.com/books/22211/collins-ch15_s03/read
O'Leary, M. (2017, April 7). Measure Profit to People-All People (SSIR). Retrieved April 25, 2017, from https://ssir.org/articles/entry/measure_profit_to_peopleall_people
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