381102: Financial Statement Analysis
- Summer 2021
- Section 1
- 4 Credits
- 06/21/2021 to 09/05/2021
- Modified 06/18/2021
This course is intended for financial and credit analysts, CPA or CFA candidates, investors, business managers, or individuals who are involved in equipment or real estate financing, leasing, or trade credit analysis. The course focuses on the mechanics of financial statement analysis, including balance sheet and income statement analysis, ratio analysis, cash flow analysis, common size analysis, and trend analysis. Particular emphasis is placed on quality of earnings analysis. Students are expected to analyze and evaluate free cash flow generation, profitability, operating efficiency, and the impact of leverage on business risk and return on equity.
Participants will develop tools and techniques for the interpretation of financial statement information. Upon completion of this course, the participant should be able to:
- Understand the accounts on a balance sheet.
- Understand an income statement.
- Interpret a statement of cash flows.
- Perform and understand ratio analysis.
- Perform and understand trend analysis.
- Understand the different objectives of financial statement analysis.
- Perform an assessment of earnings quality.
Financial Statement Analysis, US Edition
- Author: Subramanyam, K. R
- Publisher: , New York, NY, McGraw-Hill Irwin, 2014
- Edition: 11th Edition
- ISBN: 978-0-07-811096-2.
The US edition is the required text.
Principles of Accounting X 1A and X 1B are prerequisites to taking this class.
|Discussion||10%||Question Answer Forum.|
Assignments will be posted at the beginning of the week in which they are assigned, unless otherwise specified. The homework content for this course is found in “Homework and Reading Assignment” under “Course Modules” in the Canvas menu. I will post the assignment on Tuesday at 11:59 pm. The assignment needs to be turned in by the the following Tuesday at 11:59 pm. The last pages of this syllabus also lists your homework assignments.
|Mid Term Examination||40%|
|Final Examination (Comprehensive)||40%|
Course grades will be calculated using a weighted average, not a point system. Course grades will be based on written examinations, participation in the discussion board and on time completion of homework assignments as follows:
Graduate/Professional Grading Scale (courses in the X 400 Series)
I do not modify letter grades with plus or minus.
Please note that ALL COURSE GRADES ARE FINAL.
The course is centered in the Modules. You need to go to Modules and study the Introduction and Course Guidelines and its components. Go to Week 1 and study the components. It can be easy to put things off in an online class. Overcome this temptation.
UCLA expects students to put in 10 hours per week on this course. Most students need to put in more time to be successful. I expect you to put in at least 10 hours per week or more if needed. I expect students to do the Discussion and Homework each week and turn it in on time. I expect students to check their Discussion and Homework after I grade them and read my feedback.
Planning Your Study Time
An online class takes more time than a live class. Depending on the extent of your academic preparation and recent college-level coursework in this topic area, the amount of study time needed may vary considerably. UCLA and I think the minimum time requirements will be 10 hours per week. Most students need more than 10 hours per week.
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Protecting Privacy and Data During Live Instruction
Live meeting sessions for this class, when applicable, are being conducted over Zoom. As the host, the instructor may be recording live sessions. Only the host has the ability to record meetings, no recording by other means is permitted. Recorded sessions will be posted in the Videos area of this class unless otherwise notified. Due to privacy, recordings are not available for download and are only accessible via Canvas for the duration of the class. If you have privacy concerns and do not wish to appear in the recording, do not turn on your video and/or audio. If you also prefer to use a pseudonym instead of your name, please let the instructor know what name you will be using so that the instructor knows who you are during the session. To rename yourself during a Zoom meeting, click on Participants, click on your name, click on More, click on Rename. If you would like to ask a question, you may do so privately through the Zoom chat by addressing your chat question to the instructor only (and not to ""everyone""). Additionally, chat may be used and moderated for live questions, and saving of chats is enabled. If you have questions or concerns about this, please contact the instructor via Canvas Inbox.
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About Your Online Course Materials
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Homework 1 and Reading Assignment
June 22, 11:59 pm
|Overview of financial statement analysis. Financial reporting and analysis.||
Exer. 1-2, 1-3
Exer. 2-9, 2-14
Read, Chap. 1 & 2
Homework 2 and Reading Assignment
June 29, 11:59 pm
|Analyzing financial activities.||
Exer. 3-6, 3-9, 3-12
Read, Chap. 3
Homework 3 and Reading Assignment
July 6, 11:59 pm
|Analyzing investing activities.||
Exer. 4-4, 4-7, 4-8
Read; Chap 4
Homework 4 and Reading Assignment
July 13, 11:59 pm
|Analyzing investing activities: Intercorporate investments.||
Prob. 5-1, 5-6
Read: Chap. 5
Homework 5 and Reading Assignment
July 20, 11:59 pm
|Analyzing operating activities.||
Exer. 6-1, 6-2
Read: Chap. 6
Midterm Exam, Chap. 1 – 5
Homework 6 and Reading Assignment
July 27, 11:59 pm
|Cash flow analysis. Return on invested capital and profitability analysis.||
Exer. 7-5, Prob. 8-7
Read: Chap 7 & 8
Homework 7 and Reading Assignment
Question 9-6, 9-7
Read: Chap. 9
Homework 8 and Reading Assignment
August 10, 11:59 pm
Ques. 10-1, 10-5
Read: Chap. 10
Homework 9 and Reading Assignment
August 17, 11:59 pm
|Equity analysis and valuation.||
Read: Chap. 11
Homework 10 and Reading Assignment
August 24, 11:59 pm
You have this week to study for and to take the final exam.
Final Exam Chap. 1-11