[MUSIC] So, let me start with the first week. In this first session, we are going to divide the content in 6 different points. The first one I will introduce briefly is, what operational finance means. Then afterwards, we will use an example and with that example I will guide you through the understanding of the P&L. And understanding of the balance sheet and trying to make an interpretation of how the company works. Afterwards, we will do a wrap up and understand what we just saw in the whole session. So, let us start with the first point of introduction to Operational Finance. So what do we mean by Operational Finance? So, as you saw in the course of Marc Badia. That he taught Financial Accounting in the first part of this course here at Foundations of Management. That we are teaching here at IESE. You understood a little bit the language of business. He said, to understand a business, we need to understand accounting, which is the basic language of business. In accounting, what you see is, how to understand the different parts of the business that you have to record. Every transaction that happens to the business has to be recorded. And how do you aggregate all those transactions into one financial statement that is called the balance sheet? And in another financial statement that is called the "P&L"? Now, building on that, what we will do is take this to another level which is how do firms actually finance themselves in the short term. By the short term, we mean like, how do firms manage cash, how do firms manage receivables. The inventory, and how firms are financed by payables and short term credit. We will look at concepts as networking capital and need of funds for operations. Now, there's another part in finance that is called Corporate Finance or Structural Finance. That part of finance is more focused that how to finance the fixed assets of the company. And what is the balance between debt and equity that every company should have. Now, this part of the course is beyond the scope of this operation of finance course. But I mention it to you so that you know that there is a second part in which you can go deeper into finance. As I mentioned in the beginning of this video. What we're going to see here is to help you understand a financial analysis of a company. Trying to diagnose the problems that the company has and then trying to implement possible and feasible solutions or action plans. That help us make a robust business. [MUSIC]