Financial Statement Analysis – ACCT 370

CG • Section 8WK • 11/08/2019 to 04/16/2020 • Modified 03/30/2022

Course Description

This course examines the fundamental techniques of financial statement analysis and their application to strategic planning and decision making. The course covers the analysis and interpretation of financial information including the balance sheet, income statement, and statement of cash flows.

For information regarding prerequisites for this course, please refer to the Academic Course Catalog.

Rationale

Understanding the keys to effective financial statement analysis will provide finance majors and other business and accounting students with a competitive advantage in the marketplace. A working knowledge of the tools used to evaluate and adjust the financial statements to enhance their economic content for meaningful financial analysis will enhance students’ strategic decision making capabilities. The processes and methods used to reconstruct the economic reality embedded in the financial statements including ratio analysis, prospective analysis, earnings prediction and equity valuation are emphasized in the course.

Course Assignment

Textbook readings and presentations

Course Requirements Checklist

After reading the Course Syllabus and Student Expectations, the student will complete the related checklist found in Course Overview.

Discussions (2)

Discussions are a collaborative learning experience. Therefore, the student will post a thread of 350 words in response to each of the provided prompts.  The thread must demonstrate course-related knowledge, and clearly respond to the discussion prompt.  In addition to the thread, the student is required to reply to two other students' threads.  Each reply must be at least 150 words. 

Connect SmartBook (Read & Interact) Assignments (20)

The student will complete 20 SmartBook assignments (Read & Interact) using Connect. These assignments involve reading the assigned chapter, and answering questions regarding the concepts covered in the assigned readings.

Connect Quizzes (4)

There will be 4 quizzes in this course completed in Connect. Each quiz will be based on the textbook readings and contain problems and/or multiple-choice questions.

Excel Project Assignments (3 Parts)

The student will complete a 3 part project in Microsoft Excel that focuses on financial statement analysis of a selected company. The selected company must be traded on a recognized stock exchange, such as the New York Stock Exchange, or NASDAQ.  The course instructor must approve each student's company selection.  The project will be submitted in the following parts throughout the course:

Historical Financial Statement Analysis Assignment: Company Information, Historical Balance Sheets, Income Statements, and Statements of Cash Flow for Company, and Historical Ratios

Competitor Analysis Assignment: Historical Balance Sheets, Income Statements, and Statements of Cash Flow for 2-3 Competitors, and Competitor Ratios

Projecting Financial Statements Assignment: Horizontal and Vertical Analysis and Projected Financial Statements

Financial Analysis Presentation Assignment

The student will prepare a 10–12 minute presentation using Kaltura Capture software (provided by the University). This narrated PowerPoint presentation will address the financial analysis completed for the company that was selected for the Excel Project.  The student's presentation should be supported by market research and the student's own quantitative analysis.  The presentation should contain APA style citations to at least 8 reputable professional, scholarly, or trade publications, which should include the textbook and Bible.