ACC645: Theory and Analysis of Financial Statements
Instructor: Kaustav Sen
Office: 484 W, One Pace Plaza, NY 10038
Telephone: (212) 346 1989
My website: http://webpage.pace.edu/ksen
Course URL: http://blackboard.pace.edu/
Office Hours: Tuesday 3:00-5:30 p.m.
Wednesday 3:30-6:00 p.m.
Objective: The course will focus on the use of financial statement information for equity and credit analyses.
Textbook: Financial Statement Analysis: Theory, Application and Interpretation (Seventh Edition) by Wild, Bernstein and Subramanyam.
Reading of The Wall Street Journal is strongly recommended.
Grading Policy: Assignment 1 20
Assignment 2 25
Assignment 3 25
Teaching format: This class has a combined format involving lecture, problem solving and finally discussion of contemporary situations. The lectures will cover the basic theory necessary to analyze the cases/problems. Discussion of assigned problems is also part of the learning experience. Materials for discussion as well as solutions to the problems will be posted on the course website.
Class preparation: Bring the textbook and calculator to class. Read the chapter, attempt the assigned problems before coming to class and be prepared to participate. Being present in class but not participating does not count for “Participation”.
Assignment: There are three assignments you have to hand in. Students should not collaborate on these assignments unless doing the Group Project. Assignments should be legible and stapled. (C is a case, P is a problem and E is an exercise).
Exam: There will be only one in-class exam. It will be open book and notes. I will give you reading material one week prior to the exam and you will have choice in answering the questions. Reading the Wall Street Journal on a regular basis will help you for the exam.
Chapter 1: Overview of Financial Statement Analysis
Chapter 2: Analysis Objective and Financial Reporting
C1-2, P2-14, C2-1
10/2 Chapter 3: Analyzing Financing Activities: Liability
E3-3, C3-1, C3-3
10/9 Chapter 3: Analyzing Financing Activities: Equity
10/16 Chapter 4: Analyzing Investing Activities
10/23 Chapter 5: Analyzing Investing Activities – Special Topics
10/30 Chapter 6: Analyzing Operating Activities: Income
11/6 Chapter 7: Analyzing Business Activities: Cash Flows
11/13 Chapter 8: Return on Invested Capital
11/20 Chapter 9: Profitability Analysis
11/27 Chapter 10: Prospective Analysis
12/4 Chapter 11: Credit Analysis
12/11 Chapter 12: Equity Analysis and Valuation