COLLEGE OF BUSINESS & PUBLIC AFFAIRS
Summer Semester 2008
Course Number: Accounting 490 / Finance 313
Course Title: Analysis of Financial Statements
Term, Level and Credit: AY 2007-2008, undergraduate, 3 credit hours
Course Description: An in-depth study of current financial reporting practices; analysis and interpretation of corporate
financial statements. The course includes an extensive review of financial accounting concepts.
Course Prerequisites: Accounting 301 or Finance 301 or concurrent enrollment in Accounting 301.
Course Text and Required Material: Understanding Financial Statements - Lyn M. Fraser & Alleenn Ormiston - 8th
ed., Pearson Prentice Hall
College Mission: The College of Business and Public Affairs, consistent with the overall Mission of The University of
Tennessee at Martin, develops graduates whose skills, innovative abilities and ethical standards contribute to a
diversified and dynamic society. With a primary focus on teaching, the College emphasizes quality
undergraduate and graduate instruction and faculty commitment to student and regional development. Programs
are delivered in an environment that encourages a broad understanding of the forces shaping global social,
political and economic change. The College promotes and supports cooperative alliances with stakeholders and
outstanding teaching, research, and service.
BSBA Learning Goals related to the CBPA Mission: Graduates of the BSBA program will have demonstrated the
following BSBA learning goals in this course:
BSBA 2 demonstrate an understanding of the ethical aspects of business.
BSBA 3 demonstrate competence in appropriate technology in business.
BSBA 4 demonstrate effective verbal and written communication skills.
BSBA 6 demonstrate competence in the Accounting major and/or Finance major.
Expected Student Outcomes: The study of Advanced Accounting has as its objective to provide the student at the
conclusion of the course with an understanding of:
1. current financial reporting practices ,
2. analysis of the Balance Sheet,
3. analysis of the Income Statement,
4. analysis of the Cash Flow Statement,
5. methods of financial forecasting,
6. tools of credit analysis, and
7. tools of equity analysis.
Accommodations for Disability: Any student eligible for and requesting academic accommodations due to a
disability is required to provide a letter of accommodation from Disability Services, Clement 203 (XX7605),
within the first two weeks of the semester.
Instructor: Richard B. Griffin Semester: Summer 2008
Office: 304 Clement Hall Phone: (731) 881-7308
E-mail: firstname.lastname@example.org Fax: (731) 881-7241
Relationship to Major The course helps to meet the goals of the accounting and finance curricula in the following
1. Prepares students for positions in public, private accounting - Financial Statement Analysis is part of
Financial Accounting one of the critical areas of the accounting profession; Accounting 490 / Finance 313
helps the student gain knowledge in that area.
2. Serves as an excellent pre-law major - The logical skills learned in Accounting 490 / Finance 313 will be
applicable to the study of law.
3. Provides a background for the CFA, CIA, CMA, and CPA examinations - The course addresses the
financial theory area in general. Since Accounting 490 / Finance 313 is the study of business financial
analysis, the course specifically addresses the issues covered on the CFA, CPA and CMA exams.
4. Prepares students for graduate study in accounting and business administration - The course addresses this
goal through the development of study habits and logical skills which will be valuable in graduate school.
1. Students are responsible for reading each chapter and preparing assignments from the text. Each chapter should
be read before it is covered in class. All assignments are due at the start of class on the date they appear on the
assignment sheet and will not be accepted late.
2. There will be three scheduled exams. If for any reason a student cannot attend a regularly scheduled exam, it is
the student's responsibility to contact the instructor prior to the time of the exam. It will be determined by the
instructor if the student qualifies to take a make-up examination. Exams one and two may be not made up.
Instead, if you miss one of these exam periods, your grade on the third exam will be substituted for the missed
exam. If you miss two exams, you will receive a zero on the second exam. To make things fair for those who
take all exams, your third exam performance will be compared with your first and second exam scores. If the
third exam score is higher, that either score, it will be substituted for one (only) score on the first or second
exams when your course grade is computed.
3. The grade distribution for the course is:
A = 90% or above
B = 80% to 89%
C = 70% to 79%
D = 60% to 69%
F = 59% or lower
Attendance Policy: All students are expected to attend class and to participate in classroom discussion. Excessive
absences will result in the lowering of one's grade by one letter grade. Two or more excused or unexcused
absences is excessive.
Homework/ /Financial Report Policy: All homework is to be done of the computer using Excel and/or Word. The
homework is to be turned in on computer paper with you name on the outside of each problem at the
beginning of class on the date the assignment appears on the assignment sheet unless otherwise instructed by
the instructor. If you are not going to be in class work should be turned in ahead of time or faxed or e-mailed as
an attachment before the start of that class. No homework will be accepted late.
In Class Assignment: All in class assignments will be turned in during the class given and may not be made up if you
Financial Report Policy: The Financial Report must be turned in on the dates shown and shall be computer generated.
Test Policy: Electronic dictionaries, cell phones, and/or hand held computers will not be permitted. Each
student’s grade will be determined not only by the students accounting knowledge, but also by their ability to
use Excel in working some of the problems.
Quiz Policy: Quizzes will be given throughout the semester unannounced and may not be made up. The quizzes count
12% of your grade. At least two will be dropped. Those students arriving late to class will not be allowed to
take the quiz if it has already been handed out. If one leaves after taking the quiz before the end of the class
period the quiz will not be counted.
Grades: Final grades will be determined as follows:
First Exam 20%
Second Exam 20%
Final Exam 20%
Financial Report 13%
Homework & in Class Assignments 15%
A grade of at least a "C" must be earned in each accounting course taken after summer 1995 which will be
counted towards graduation requirements as an accounting major.
Retake of Final Examination: University policy provides "that a senior who fails one subject during the semester of
his/her intended graduation shall have the privilege of standing examination at the opening of or during the next
semester. If he/she is successful, he/she will receive his/her degree at the next commencement."
Academic Honesty: Academic honesty is expected in this class. Failure to adhere to this standard will result in an “F”
in the course. The student caught cheating may be subject to additional disciplinary actions.
Tentative Class Schedule
Date Chapter Topic Assignment BSBA Goals Addressed
June 2M 1 Introduction to Analysis of Financial
3T 1 Volume of Information
4W 1 Complexities 1.12 BSBA 2, 3 & 4
5R 1 Quality of Financial Reporting
6F 2 Assets Case 1.2 BSBA 3 & 4
9M 2 Liabilities 2.7 BSBA 3, 4 & 6
10 T 2 Stockholders' Equity 2.14 BSBA 3, 4 & 6
11W 2 Other Balance Sheet Items
12 R 3 The Income Statement 2.18 BSBA 3, 4 & 6
13 F Exam Chapters (1 through 2)
16 M 3 The Income Statement 3.10 BSBA 3, 4 & 6
17 T 3 Statement of Stockholders' Equity
18 W 4 Statement of Cash Flow C3.2 BSBA 3, 4 & 6
19 R 4 Types of Activities 4.1 & 4.2 BSBA 4 & 6
20 F No Class – Company Report Time
23 M 4 Direct vs. Indirect Method Company Balance Sheets
Dollar & Common Size
24 T 5 A Guide to Earnings
25 W Exam Chapters (1 through 4)
26 R 5 Financial Reporting Quality 5.8
27 F 5 No Class – Company Report Time
30 M 6 Objectives’ & Sources Company Income Statements
Dollar & Common Size
July 1T 6 Tools & Techniques 6.6 BSBA 3, 4 & 6
2W 6 Analyzing the Data Report Due BSBA 2, 3, 4 & 6
3R FINAL EXAM Chapters (1 through 6)