Online · School of Business · Accounting, Economics, and Finance

Financial Statement Analysis

ACCT-370

CG Section 8WK 11/08/2019 to 04/16/2020 Modified 12/12/2022 Course Description

This course examines the fundamental techniques of financial statement analysis and their application to strategic planning and decision making. The course covers the analysis and interpretation of financial information including the balance sheet, income statement, and statement of cash flows.

Requisites

For information regarding prerequisites for this course, please refer to the Academic Course Catalog (https://catalog.liberty.edu/).

 Rationale

Understanding the keys to effective financial statement analysis will provide finance majors and other business and accounting students with a competitive advantage in the marketplace. A working knowledge of the tools used to evaluate and adjust the financial statements to enhance their economic content for meaningful financial analysis will enhance students’ strategic decision making capabilities. The processes and methods used to reconstruct the economic reality embedded in the financial statements including ratio analysis, prospective analysis, earnings prediction and equity valuation are emphasized in the course.

 Course Learning Outcomes

Upon successful completion of this course, the student will be able to:

A. Interpret financial statements using knowledge of the underlying accounting principles and financial analysis techniques. B. Prepare prospective financial information for selected organizations. C. Prepare a comprehensive financial statement analysis for an organization. D. Apply biblical worldview principles to the area of financial statement analysis.

 Course Resources

Click on the following link to view the required resource(s) for the term in which you are registered: Liberty University Online Bookstore (https://bncvirtual.com/liberty)

Additional Materials for Learning

A. Computer with basic audio/video output equipment B. Internet access (broadband recommended) C. Canvas recommended browsers (https://community.canvaslms.com/t5/Canvas-Basics-Guide/What-are-the-browser-and-

computer-requirements-for-Canvas/ta-p/66)

D. Microsoft Word  Course Assignments

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Textbook readings and presentations Course Requirements Checklist

After reading the Course Syllabus and Student Expectations (https://www.liberty.edu/institutional-effectiveness/student- expectations/), the student will complete the related checklist found in Course Overview.

Discussions (2)

Discussions are a collaborative learning experience. Therefore, the student will post a thread of 350 words in response to each of the provided prompts. The thread must demonstrate course-related knowledge, and clearly respond to the discussion prompt. In addition to the thread, the student is required to reply to two other students' threads. Each reply must be at least 150 words.

Connect SmartBook (Read & Interact) Assignments (20)

The student will complete 20 SmartBook assignments (Read & Interact) using Connect. These assignments involve reading the assigned chapter, and answering questions regarding the concepts covered in the assigned readings.

Connect Quizzes (4)

There will be 4 quizzes in this course completed in Connect. Each quiz will be based on the textbook readings and contain problems and/or multiple-choice questions.

Excel Project Assignments (3 Parts)

The student will complete a 3 part project in Microsoft Excel that focuses on financial statement analysis of a selected company. The selected company must be traded on a recognized stock exchange, such as the New York Stock Exchange, or NASDAQ. The course instructor must approve each student’s company selection. The project will be submitted in the following parts throughout the course:

Historical Financial Statement Analysis Assignment: Company Information, Historical Balance Sheets, Income Statements, and Statements of Cash Flow for Company, and Historical Ratios

Competitor Analysis Assignment: Historical Balance Sheets, Income Statements, and Statements of Cash Flow for 2-3 Competitors, and Competitor Ratios

Projecting Financial Statements Assignment: Horizontal and Vertical Analysis and Projected Financial StatementsFinancial Analysis Presentation Assignment

The student will prepare a 10–12 minute presentation using Kaltura Capture software (provided by the University). This narrated PowerPoint presentation will address the financial analysis completed for the company that was selected for the Excel Project. The student’s presentation should be supported by market research and the student’s own quantitative analysis. The presentation should contain APA style citations to at least 8 reputable professional, scholarly, or trade publications, which should include the textbook and Bible.

 Course Grading

Course Requirements Checklist 10

Discussions (2 @ 60 pts ea) 120

Read & Interact (Connect SmartBook Assignments) (20 @ 10 pts ea) 200

Connect Quizzes (4 @ 60 pts ea) 240

Excel Project Assignments (3 @ 100 pts ea) 300

Financial Analysis Presentation Assignment 140

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 Policies

Total 1,010

Late Assignment Policy Course Assignments, including discussions, exams, and other graded assignments, should be submitted on time.

If the student is unable to complete an assignment on time, then he or she must contact the instructor immediately by email. Assignments that are submitted after the due date without prior approval from the instructor will receive the following deductions:

2. Late assignments submitted within one week after the due date will receive up to a 10% deduction.
4. Assignments submitted more than one week and less than 2 weeks late will receive up to a 20% deduction.
6. Assignments submitted two weeks late or after the final date of the course will not be accepted outside of special circumstances (e.g. death in the family, significant personal health issues), which will be reviewed on a case-by-case basis by the instructor.
8. Group projects, including group discussion threads and/or replies, and assignments will not be accepted after the due date outside of special circumstances (e.g. death in the family, significant personal health issues), which will be reviewed on a case-by-case basis by the instructor.

Disability Assistance

Students with a disability and those with medical conditions associated with pregnancy may contact Liberty University’s Online Office of Disability Accommodation Support (ODAS) at LUOODAS@liberty.edu for accommodations. Such accommodations require appropriate documentation of your condition. For more information about ODAS and the accommodations process, including how to request an accommodation, please visit https://www.liberty.edu/online/online-disability-accommodation- support/ (https://www.liberty.edu/online/online-disability-accommodation-support/). Requests for accommodations not related to disabilities or pregnancy must be directed to the Registrar’s Office, which generally handles medical needs support.

If you have a complaint related to disability discrimination or an accommodation that was not provided, you may contact ODAS or the Office of Equity and Compliance by phone at (434) 592-4999 or by email at equityandcompliance@liberty.edu. Click to see a full copy of Liberty’s Discrimination, Harassment, and Sexual Misconduct Policy (https://wiki.os.liberty.edu/display/IE/Liberty+University+Discrimination,+Harassment,+and+Sexual+Misconduct+Policy) or

the Student Disability Grievance Policy and Procedures (https://www.liberty.edu/disability-support/wp- content/uploads/sites/106/2022/01/Disability-Grievance-Procedures.pdf).

Course Attendance

In an effort to comply with U.S. Department of Education policies, attendance is measured by physical class attendance or any submission of a required assignment within the enrollment dates of the course (such as examinations, written papers or projects, any discussion posts, etc.) or initiating any communication with one’s professor regarding an academic subject. More information regarding the attendance policy (https://wiki.os.liberty.edu/display/IE/Online+Attendance+and+Non-Attendance) can be found in the Academic Course Catalogs (https://www.liberty.edu/academics/course-catalogs/). Regular attendance in online courses is expected throughout the length of the term. Students who do not attend within the first week of a sub-term by submitting a required academic assignment (such as the Course Requirements Checklist, an examination, written paper or project, discussion post, or other academic activity) will be dropped from the course. Students who wish to re-engage in the course are encouraged to contact Academic Advising to discuss their enrollment options. Students who begin an online course, but at some point in the semester cease attending, and do not provide official notification to withdraw, will be assigned a grade of “FN” (Failure for Non- Attendance (https://wiki.os.liberty.edu/display/IE/Unofficial+Withdrawals)). Students wishing to withdraw from courses after the official start date should familiarize themselves with the withdrawal policy.

Grading Scale

ABCDF

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900-1010 800-899 700-799 600-699 0-599

For courses with a Pass/NP final grade, please refer to the Course Grading section of this syllabus for the assignment requirements and/or point value required to earn a Passing final grade.

Add/Drop Policy The full policy statement and procedures are published in the Policy Directory

(https://wiki.os.liberty.edu/display/IE/Dropping+and+Adding+Online+Classes).Honor Code

Liberty University comprises a network of students, Alumni, faculty, staff and supporters that together form a Christian community based upon the truth of the Bible. This truth defines our foundational principles, from our Doctrinal Statement to the Code of Honor. These principles irrevocably align Liberty University’s operational procedures with the long tradition of university culture, which remains distinctively Christian, designed to preserve and advance truth. Our desire is to create a safe, comfortable environment within our community of learning, and we extend our academic and spiritual resources to all of our students with the goal of fostering academic maturity, spiritual growth and character development.

Communities are predicated on shared values and goals. The Code of Honor, an expression of the values from which our Doctrinal Statement was born, defines the fundamental principles by which our community exists. At the core of this code lie two essential concepts: a belief in the significance of all individuals, and a reliance on the existence of objective truth.

While we acknowledge that some may disagree with various elements of the Code of Honor, we maintain the expectation that our students will commit to respect and uphold the Code while enrolled at Liberty University.

Adherence to the principles and concepts established within facilitates the success of our students and strengthens the Liberty community.

The Code of Honor can be viewed in its entirety at https://www.liberty.edu/students/honor-code/ (https://www.liberty.edu/students/honor-code/).

 Schedule

When Topic

Technology Integration Set-Up

Apply

Notes

Prepare: Register for Connect

Discussion Thread: Importance of Financial Statement Analysis

Course Overview Student Acknowledgements Course Requirements Checklist

Module 1: Week 1

Learn

Read & Interact: 2 items Watch: 1 item

Module 2: Week 2

Learn

Read & Interact: 2 items Watch: 1 item

Apply

Excel Project: Historical Financial Statements Assignment Quiz: Introduction to Financial Reporting Discussion Replies: Importance of Financial Statement Analysis

Module 3: Week 3

Learn & Apply

Read & Interact: 2 items Watch: 1 items

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When Topic Notes

Module 4: Week 4

Learn

Read & Interact: 3 items Watch: 1 item

Apply

Excel Project: Competitor Analysis Assignment Quiz: Essentials of Financial Statement Analysis

Module 5: Week 5

Learn

Read & Interact: 3 items Watch: 1 item

Apply Discussion Thread: Projecting Financial Statements

Module 6: Week 6

Learn

Read & Interact: 3 items Watch: 1 item

Apply

Excel Project: Projecting Financial Statements Assignment Quiz: Assets, Taxes & Postretirement Benefits Discussion Replies: Projecting Financial Statements

Module 7: Week 7

Learn

Read & Interact: 3 items Watch: 1 item Explore: 1 item

Apply Financial Analysis Presentation Assignment

Module 8: Week 8

Learn

Read & Interact: 2 items Watch: 1 item

Apply Quiz: Equity, Acquisitions & Cash Flows

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