FNCR2240 Financial Statement Analysis

Course Description

The objective of this course is to provide students with a framework for analyzing a firm¿s past performance, estimating its future performance, and valuing its equity. The course integrates key concepts from accounting, finance, economics, and business strategy and applies them to financial decision-making and teaches students how to interpret numbers in financial statements.
The main goal of this course is to give students the ability to generate reasonably accurate forecasts of a firm¿s future financial performance, including revenues, earnings, asset balances and free cash flows. As this course is case-oriented, there will be a course project that analyzes and compares two corporations in similar businesses. Students planning a career in accounting, the financial industry, consulting, and/or general management will find the knowledge acquired in this course relevant.
Student Learning Outcomes:

  • Define basic accounting terminology and the accounting cycle.
  • Identify the organization and disclosure of information reported in 10-K filings and notes financial statements.
  • Classify and identify accounts reported on all financial statements.
  • Recognize and classify assets and liabilities that are NOT reported under accounting rules and determine the importance of these off-balance sheet items for understanding the value of a business.
  • Interpret financial statements, including profit and loss, sales data, inventory turnover, and monthly and year-end reports.
  • Calculate and interpret financial ratios and understand how to use ratios to compare a firm to its competitors and evaluate changes in ratios over time.
  • Analyze financial statements to determine ROI (return on investment), profitability, and decisions for maximum returns.
  • Examine how accounting errors (intentional or unintentional mistakes) impact reported income and the book value of equity.
  • Describe the financial variations of legal business forms (sole proprietorship, partnership, and corporation).
  • Analyze business scenarios and case studies using financial problem solving and critical thinking skills.
  • Utilize technology tools to create and analyze financial statements.

Prerequisite

Please see eServices for section availability and current pre-req/test score requirements for this course.

3 credits: 3 lectures / presentations, 0 lab, 0 other