Sep 19, 2021  
2020-2021 Course Catalog 
    
2020-2021 Course Catalog [ARCHIVED CATALOG]

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ACC 191 - Financial Analysis

Credits: 3
Lecture Hours: 3
Lab Hours: 0
Practicum Hours: 0
Work Experience: 0
Course Type: Voc/Tech
An analytical study of accounting information and financial statements with project orientation approach. The course focuses on financial ratio analysis and trend analysis, providing written discussion within a Capstone project that analyzes a currently publicly traded corporation.
Prerequisite: Successful completion of ACC 132  with a grade of “C” or above
Competencies
 

  1. Evaluate the basic financial goals of a firm or business.
    1. Understand what accounting is and why it is important.
    2. Analyze basic financial statement ratios.
    3. Assess ratio, trend, and common-size analysis.
    4. Discuss the purpose of financial analysis.
  2. Assess the use of Balance Sheet in determining company net worth.
    1. Understand how the balance sheet is organized.
    2. Identify individual components of the balance sheet.
    3. Understand the similarities and differences between U.S. GAAP and IFRS among asset items.
    4. Explain how debt and equity affect financial risk.
    5. Interpret liquidity and solvency ratios.
    6. Examine trend and common-size balance sheets.
  3. Critique company’s profitability through Income Statement.
    1. Understand how the multi-step income statement is organized.
    2. Interpret trends in income statement revenues, expenses, subtotals, and totals.
    3. Understand the accrual basis for accounting, revenue recognition, and the matching principle.
    4. Interpret profitability ratios.
    5. Examine trend and common-size statements.
  4. Defend changes to Stockholders’ Equity.
    1. Explain how the Stockholders’ Equity is organized.
    2. Understand typical items that affect retained earnings.
    3. Summarize common and preferred stock.
    4. Evaluate solvency, profitability, and investment performance.
  5. Evaluate changes to cash as show on the Statement of Cash Flows.
    1. Understand how the Statement of Cash Flows is organized.
    2. Identify operating, investing, and financing activities.
    3. Understand direct and indirect methods for computing operating cash flows.
    4. Interpret cash flow ratios.
    5. Examine trend and common-size statements of cash flows.
  6. Inspect specific accounts.
    1. Understand the nature of cash and cash equivalents.
    2. Compare how companies report short-term and long-term investments.
    3. Understand the relationship and calculation between accounts receivable and the accounting for bad debts.
    4. Understand accounting for property, plant, and equipment and depreciation.
    5. Compare how companies account for current and noncurrent liabilities.
  7. Critique analysis of current corporation within a written or verbal Capstone Project. 
    1. Consult current Form 10-K filed with the SEC for business specific information.
    2. Review Discussion & Analysis section of Form 10-K, identifying current and future opportunities within social, political, economic, technological, and / or other areas.
    3. Evaluate the Balance Sheet assets, liabilities, and equity sections.
    4. Compare Balance Sheet information for business over time and information between enterprises.
    5. Prepare trend analysis and common-size balance sheet with and without using condensed income statement.
    6. Comment on trends in the growth of assets, liabilities, and stockholders’ equity, and overall financial risk.
    7. Review the condensed, trend, and common-size income statement.
    8. Comment on trends in the growth of revenues, expenses, and net income, as well as overall productivity.
    9. Prepare the trend analysis and common-size statement using the amounts from the condensed statement of cash flows.
    10. Summarize your analysis of the statement of cash flows. Comment on trends in the growth of operating, investing, and financing activities.
    11. Compute a variety of ratios for profitability, efficiency, liquidity, solvency and investment.
    12. Explain overall profitability, efficiency, liquidity, and solvency of the company.

 



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