PACE UNIVERSITY

 

ACC645: Theory and Analysis of Financial Statements

Fall 2001

 

Course Outline

 

Instructor:         Kaustav Sen

Office:              484 W, One Pace Plaza, NY 10038

Telephone:        (212) 346 1989

Email:               ksen@fsmail.pace.edu

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                    

                        Participation                                5

                        Exam                                        25

                                    Total                                         100

 

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. 

 

Assignment:

1: any 3 from: C2-2, C3-4, C3-5, C3-6                                                                 Due 10/23/01   

2: any 4 from: C4-7, P5-3, C6-4, C6-5, C7-1        or Group Project 1                     Due 11/13/01

3: any 4 from: C8-4, C9-1, C10-1, P11-6, C12-3   or Group Project 2                     Due 12/4/01

 

 

 

Schedule:

 

9/25      Introduction

Chapter 1: Overview of Financial Statement Analysis

Chapter 2: Analysis Objective and Financial Reporting

C1-2, P2-14, C2-1

 

                                    Accounting Analysis

 

10/2      Chapter 3: Analyzing Financing Activities: Liability

E3-3, C3-1, C3-3

 

10/9      Chapter 3: Analyzing Financing Activities: Equity

P3-6, C3-2

 

10/16    Chapter 4: Analyzing Investing Activities

C4-4

 

10/23    Chapter 5: Analyzing Investing Activities – Special Topics

E5-5, C5-2

 

10/30    Chapter 6: Analyzing Operating Activities: Income

C6-1, C6-2

 

11/6      Chapter 7: Analyzing Business Activities: Cash Flows

C7-4

                                    Financial Analysis

 

11/13    Chapter 8: Return on Invested Capital

C8-3

 

11/20    Chapter 9: Profitability Analysis

C9-3

 

11/27    Chapter 10: Prospective Analysis          

C10-2

 

12/4      Chapter 11: Credit Analysis

C11-1, C11-6

 

12/11    Chapter 12: Equity Analysis and Valuation

C12-1

 

12/18    Exam