FIN621 : Financial Statement Analysis

Course Overview

Course Synopsis

Financial Statement Analysis deals with the deep study of financial statements (Balance sheet, income statement, cash flow statement, statement of changes in owner’s equity) of companies and how the information contained in these can be used by the external and internal users. The course includes major topics of basic financial statements, method to prepare cash flow statement, analysis of cash flow statement, inventory valuation methods, ratio analysis, trend analysis, and application of ratios in evaluating the financial position of the company. This course will help you in strengthening your analytical skills and abilities.

Course Learning Outcomes

At the end of the course you should be able to learn:

  • The roles of financial reporting and financial statement analysis
  • The role of key financial statements
  • The evaluation and comparison of companies using ratio analysis, common size analysis
  • How ratios are related and how to evaluate a company using a combination of different ratios


Course Calendar

TopicLectureResourcePage
Introduction of Accounting and Financial Statement Analysis1Handouts1 - 5
Account2Handouts6 - 9
Accounting Cycle and its Various Steps2,3,4Handouts6 - 17
Double Entry Accounting System2Handouts6 - 9
Debit and Credit Rules3Handouts10 - 13
Compound Entry4Handouts14 - 17
Trial Balance4Handouts14 - 17
Accrual Basis of Revenues and Expense Accounting5Handouts18 - 25
Income Statement5,10Handouts18 - 41
Adjusting Entries and its Various Types6,7Handouts26 - 31
Owner’s Equity Statement8Handouts32 - 34
Statement of Finanacial Position( Balance Sheet)8,9Handouts32 - 41
Quiz 1
Closing Entries in the Accounting Cycle10Handouts35 - 36
Current Assets11Handouts42 - 45
Cash Flow Statement12,13Handouts46 - 53
Graded Discusstion Board # 1
Cash Flow Statement14,15,16,17Handouts54 - 64
Inventory Accounting Policies18Handouts65 - 68
Notes to the Financial Statements18Handouts65 - 68
Quiz 2
Financial Statements with Inventory19Handouts69 - 73
Inventory Valuation Methods19,20Handouts69 - 78
Accounting for Depriciation of Fixed Assets21Handouts79 - 97
Different Accounting Methods21, 22Handouts79 - 100
Note: Course Calendar has been partially updated for pre-mid activities only
Mid Term Examination
Concept of Materiality23Handouts101 - 102
Types of Auditor’s Opinion23,24Handouts101 - 106
Types of Businesses24,25Handouts103 - 109
Quality of Financial Reporting24,25Handouts104 - 106
Limitations of Financial Statements24,25Handouts104 - 106
Capital Structure26Handouts110 - 111
Incorporation of a Business26Handouts110 - 111
Types of Stock/ Shareholders26Handouts110 - 111
Stockholder’s Equity27Handouts112 - 115
Book/Market Value of Shares28Handouts116 - 120
Summary of the Previous Lectures29Handouts121 - 122
Techniques of Financial Statement Analysis30,31Handouts123 127
Horizontal Analysis32Handouts128 - 129
Users of Financial Statements32Handouts128 - 129
Vertical Analysis32Handouts128 - 129
Liquidity Ratios33Handouts130 - 131
Working Capital34Handouts132
Activity Ratios35Handouts133 - 135
Operating Cycle35Handouts133 - 135
Receivables Turn Over Ratio35Handouts133 - 135
Coverage Ratios36Handouts136 - 137
Debt Ratios36Handouts136 - 137
Asset Turn Over Ratio37Handouts138 - 141
Profitability Ratios37Handouts138 - 141
Return on Common Stockholder’s Equity38Handouts142 - 144
Return on Investment38Handouts142 - 144
Return on Total Assets38Handouts142 - 147
Return on Sales39Handouts142 - 144
Efficiency of Operating Cycle39Handouts142 - 144
Elements of Stockholder Equity40,41Handouts148 - 151
Overview of the Balance Sheet and Income Statement Ratios42Handouts152 - 153
Practicle Example of Accounting Ratios Anaylysis (Case Study)43,44Handouts154 - 161
Summary of Findings45Handouts162 - 165
Final Term Examination
Note: Changes in this schedule can be made during the semester as per requirements
 
 
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