BADM622                                   DeGeorge                                 Page 1 of 4

BADM622                                  DeGeorge                                 Page 2 of 4

useful information, availa...
BADM622                                  DeGeorge                                 Page 3 of 4

Team Assignments and Team ...
BADM622                                   DeGeorge                                 Page 4 of 4

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Frank A. DeGeorge CPA


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Frank A. DeGeorge CPA

  1. 1. BADM622 DeGeorge Page 1 of 4 BADM622 Financial Statement Analysis Frank A. DeGeorge CPA Updated 7/18/03 for the Fall 2003 Term Office: B&E 314 Phone: 304-293-6524 email: Course Web Site: See DeGeorge’s Home Page for current office hours and class schedule. Course Prerequisite: Acceptance into the MBA program Course Description: The course encompasses the following topics: 1) Understanding the processes involved in the development and preparation of financial statements, including the balance sheet, income statement, statement of changes in owners’ equity and statement of cash flows, 2) Investigation of the underlying conceptual/theoretical foundation of financial reporting, 3) Analysis of business transactions, including operating, investing and financing activities and the affects of each on the financial statements, 4) Analysis of financial statements and other financial information as a basis for decision-making, including analysis of the quality of the financial statements. Required Text: Stanko & Zeller, Understanding the Corporate Annual Report – A User’s Guide, University Edition, ISBN 0-471-22991-1, John Wiley & Sons, Inc. Supplemental Text: (Strongly recommended for students with a limited or no background in accounting) Jane L. Reimers, Financial Accounting – A Business Process Approach, Custom edition for West Virginia University, ISBN 0-536-68178-3, Pearson Custom Publishing. Supplemental Reading: The Wall Street Journal and other business news sources Also, use of Internet sites discussed in class. Course Objectives: In general, BADM622 is concerned with developing skills for interpreting financial information, principally financial statements prepared in accordance with United States generally accepted accounting principles. The focus of this course is on reporting for external stakeholders. Upon completion of this course, EMBA’s should understand financial statements, understand how business transactions affect the financial statements, how accepted accounting choices affect the numbers presented in the financial statements, and be able to use the financial statements as a basis for making business decisions. The initial portion of the course includes a conceptual introduction to the process of gathering financial data relating to business activities, and converting such data into
  2. 2. BADM622 DeGeorge Page 2 of 4 useful information, available to stakeholders of the business. The majority of the course is devoted to understanding the components of the financial statements (assets, liabilities, owners’ equity, revenue and expenses), the affects of business activities (financing, investing and operating) on the cash flows of a business, and the affects of alternative accounting treatments for similar business transactions. Finally, the course seeks to develop the skills needed to convert useful financial information in to knowledge to be used in the business decision-making process. This course is not intended to develop the skill sets needed to implement and maintain accounting information systems or to prepare financial statements in accordance with GAAP. Nor is this course directly intended to develop skills for utilizing financial information to maximize company profits, enhance operational efficiencies or increase shareholder value. Course format: Class meetings will primarily involve lectures and discussions of the assigned topics presented in the text, augmented by discussions of current developments in the accounting profession. Application of the assigned topics will be realized by the use of actual financial statements and discussion of actual business events or transactions, during each class meeting. Grading Policy: The following grading scale will be used to assign final grades at the end of the semester: Grade Class Points A > 224 B 200 - 224 C 175 - 199 D 150 - 174 F < 150 Maximum Class Points Examination 100 Team Assignments (5 parts) 100 Team Presentation 25 Peer Review, Participation & Professionalism 25 Total Points 250 Examination: There will be one examination, covering information addressed in Part 1 of the class (See the sample Topical outline below). The examination will consist of any combination of multiple-choice, true-false, matching, short problem and or short essay type questions.
  3. 3. BADM622 DeGeorge Page 3 of 4 Team Assignments and Team Presentation: The class will be divided in to teams comprised of 5 to 6 students each. Each team will select a publicly traded company which they will use for the Financial Statement Analysis Project (the “Project”). The Project is broken in to 5 Phases. The Team Assignments represent the teams written responses to a series of questions presented in each phase of the Project. Please see the course outline for team assignment due dates. If possible the course will culminate with a joint session, at which each team will make a financial statement analysis presentation of the selected company, including a buy-sell- hold recommendation for the stock of the company. Detailed requirements for the Financial Statement Analysis Project, are available on the course web site. Peer Review, Participation and Professionalism (PRPP): All students are expected to attend all class meetings, to have read the material assigned for each particular class prior to that class meeting and to actively participate in class discussions. In addition each student is expected to treat all of the other members of the class with respect, to conduct themselves in a professional manner and to contribute to each of the team assignments to the best of their ability. Up to 10 of the 25 PRPP points will be determined by the other members of your team based on your contribution to the team projects. The remaining 15 points are reserved for the instructor to award for participation (including attendance) and professionalism. Each student is beginning the course with 15 out of 15 points for participation and professionalism. Social Justice and Students with Disabilities: West Virginia University is committed to social justice. I concur with that commitment and expect to foster a nurturing learning environment based on open communication, mutual respect and non-discrimination. Our University does not discriminate on the basis of race, sex, age, disability, veteran status, religion, sexual orientation, color, national origin or any other basis. Any suggestions as to how to further such a positive and open environment in this class will be appreciated and given serious consideration. If you are a person with a disability and anticipate needing any type of accommodation in order to participate in this class, please advise me and make appropriate arrangements with Disability Services at 304-293-6700.
  4. 4. BADM622 DeGeorge Page 4 of 4 SAMPLE Topical Outline This outline will be modified to fit the specific cohort Related Textbook Chapters # Day/Date/ General Topic Stankos Riemers PART 1 1 Mon. 2/24 Accounting Information Chpt 1 & App B Chpts 1& 2 2 Wed. 2/26 Accounting Measurement Chpt 1 & App B Chapter 3 3 Mon. 3/03 Accounting Process Chpt 2 & App B Chpts 1,2 & 3 & Financial Reporting 4 Wed. 3/05 Statement of Cash Flows Chapter 5 Chapter 10 Examination PART 2 5 Mon. 3/10 Operating Assets Chapter 3 Chpts 6 & 7 6 Wed. 3/12 Long-term Assets Chapter 3 Chapter 5 Spring Break: No Classes during the week of 3/17 PART 3 7 Mon. 3/24 Financing with Debt Chapter 3 Chapter 8 8 Wed. 3/26 Financing with Equity Chapter 3 Chapter 9 9 Mon. 3/31 Measuring Performance Chpts 4 & 6 Chapter 11 10 Wed. 4/02 Measuring Performance Chpts 4 & 6 Chapter 11 11 Sat. 4/05 A.M Presentations 12 Sat. 4/05 P.M. Presentations Given the time frame of this class, the above topical outline is subject to change at the discretion of the instructor. Modifications, if any, will be posted to the course web site. Due Dates for Team Assignments: Phase 1: Monday, March 3, 2003 Phase 2: Monday, March 10, 2003 Phase 3: Monday, March 24, 2003 Phase 4: Monday, March 31, 2003 Phase 5: Saturday, April 5, 2003 Presentations Saturday, April 5, 2003 Please note that half of the total assignment is due to be handed in or presented during the last week of class. Teams are encouraged to review all of the requirements for all phases of the project as early as possible, so as to budget their time appropriately.