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  • 1. Vietnam Program NORTHCENTRAL UNIVERSITY INTERNATIONAL DEPARTMENT VIETNAM PROGRAM March 2009 FIN6020 Corporate Financial Statement Analysis Paul T. McGurr, Ph.D., CPA phone: (970) 247-7543 email: COURSE OUTLINE 1. COURSE NUMBER & TITLE: FIN6020 Financial Statement Analysis 2. COURSE DESCRIPTION: This course shows how accounting information is used for analysis and decision making by comparing ratios, long and short term debt paying ability, and profitability. 3. COURSE LEARNING OUTCOMES: Learners will be expected to . . . 3.1. Learn the basics of business analysis and financial statement analysis 3.2. Understand the purpose of each financial statement 3.3. Become familiar with fundamentals of analysis of financing activities. 3.4. Become familiar with fundamentals of analysis of investing activities. 3.5. Become familiar with fundamentals of analysis of operating activities. 3.6. Understand the relevance of cash flows in analyzing business activities. 3.7. Learn how to disaggregate return on net operating assets and return on shareholders’ equity. 3.8. Learn the basics of credit analysis. 4. COURSE CONCEPTS: Learners will understand the major concepts of . . . 4.1. Business and financial statement analysis. 4.2. Accrual accounting versus cash reporting. 4.3. Characteristics of liabilities and equity. 4.4. Characteristics of current and long-term assets. 4.5. Income measurement 4.6. Revenue and expense recognition. 4.7. Cash flow analysis 4.8. Profitability analysis
  • 2. Vietnam Program 4.9. Credit analysis 5. COURSE/LEARNING ASSESSMENT: The grade will be based upon a 1,000 point scale. The final score will be made up of grades on the projects for each chapter, the homework for each chapter and the final examination in the following proportions: Individual homework - Assessed via review of pre-assigned homework 200 points On-site attendance and participation 180 points On-site readings and homework - Assessed via examination 200 points Projects/Cases 7 @ 60 points each 420 points 1,000 points 6. PRIMARY TEXT: Financial Statement Analysis –10th edition Subramanyam and Wild, 2009, McGraw-Hill, ISBN 0-07-337943-2. 7. REFERENCES: References and readings may be found in the primary textbook. 8. SKILLS AND COMPETENCIES: Learners will complete this course having developed the following: Specialized Knowledge - This course will cover various aspects of financial statement analysis including horizontal and vertical analysis; ratio analysis; review of financing, investing, and operating activities; and credit analysis. Students will be assessed to ensure their knowledge through homework, projects and an examination. Communication Skills – The individually prepared homework assignments all short answer questions. The students will be assessed as to the appropriateness of their answers and in respect to form, grammar and content. Additionally, all students will be expected to participate in class discussions and bring forward examples from their own work experiences. Problem Solving – Financial statement analysis requires the ability to take corporate financial information and to think and reason logically and apply analytical tools to solve
  • 3. Vietnam Program problems and make decisions. This skill will be assessed through homework problems, the projects, and the examination. Leadership - This competency be addressed through the assignment of group projects and case studies. Part of the grade on the group projects and case studies will be determined by members of the group based upon student participation. Additionally, leadership competency will be assessed through the student’s active participation in class discussions and sharing of experiences. SYLLABUS 9) Course Schedules and Assignments: The course will consist of four components: 1) A pre- class distance learning component, 2) An on-site component, 3) A series of group projects, and 4) individually completed homework assignments, and 5) an examination.. 10) Pre-class distance learning: The students are expected to obtain the textbook and read the chapters before the instructor arrives in Vietnam. The more the student understands before the faculty member arrives, the more the student can learn from the faculty member’s lectures. 11) On-site lectures: The time the faculty member will be in Vietnam is limited. The primary goal during the on-site lectures will be to introduce the basics of financial statement analysis to the students and to provide instructions on how the group projects should be approached. 12) Group Case Study Projects: All case projects will be based on the Vinamilk December 31, 2007 financial statements (English language version Download_E/Annualreport2007.pdf (Vietnamese language version %20thuong%20nien%202007%20-%20tieng%20viet.pdf ). Vinamilk specific instructions will be prepared and distributed to the class. The assignments listed below from the textbook will be modified to fit the use of Vinamilk financial statements. The projects will be completed by groups. One project will be due each week for the eight weeks after the faculty member is in Vietnam. All projects will be submitted in an excel file attached to an e-mail sent to The words “FIN5015 Assignment” must be in the subject box. GROUP PROJECTS
  • 4. Vietnam Program Base Case Study (to be Module / Chapter modified for Vinamilk) Due Date Chapter 1 – Basic Financial Case 1-5 Monday March 23, 2009 Statement Analysis Exhibit 1.10 Exhibit 1.12 Exhibit 1.13 Chapter 2- Financial Reporting Case 2-1 Monday March 30, 2009 Chapter 3 – Analyzing Exercise 3-1 Monday April 6, 2009 Financing Activities Exercise 3-8 Case 3-3 Chapter 4 – Analyzing Exercise 4-10 Monday April 13, 2009 Investing Activities Problem 4-4 Case 4-4 Chapter 6 –Analyzing Problem 6-4 Monday April 20, 2009 Operating Activities Case 6-2 Chapter 7 – Cash Flow Exercise 7-1 Monday April 27, 2009 Analysis Exercise 7-2 Chapter 8 – Return on Capital Disaggregate RNOA (p. 454) Monday May 4, 2009 Disaggregate ROCE (p. 462) Chapter 10 – Credit Analysis Problem 10-1 Monday May 11, 2009 Problem 10-7 13) Individual Homework Assignments: The homework assignments will be short answer questions taken from the end-of-chapter questions. All homework is expected to be done individually by each student. This ensures me that each student was actively involved in learning and did not rely completely on other members of the group. While all homework assignments are to be turned in together with a due date of May 11, 2009 students are
  • 5. Vietnam Program advised to complete the questions as they read the chapters and work on the group projects related to each chapter All homework will be submitted in an excel file attached to an e- mail sent to The words “FIN5015 Homework” must be in the subject box. INDIVIDUAL HOMEWORK ASSIGNMENTS Chapter End-of-chapter Questions Due Date Chapter 1 – Basic Financial Questions 1-3, 1-4, 1-12, 1-14, Monday May 11, 2009 Statement Analysis 1-20 Chapter 2- Financial Reporting Questions 2-2, 2-24, 2-53 Monday May 11, 2009 Chapter 3 – Analyzing Questions 3-1, 3-7, 3-9, 3-36, Monday May 11, 2009 Financing Activities 3-42 Chapter 4 – Analyzing Questions 4-2, 4-3, 4-11, 4-14, Monday May 11, 2009 Investing Activities 4-19 Chapter 6 –Analyzing Questions 6-1, 6-8, 6-10, 6-35, Monday May 11, 2009 Operating Activities 6-38 Chapter 7 – Cash Flow Questions 7-1, 7-2, 7-3, 7-4, Monday May 11, 2009 Analysis 7-8 Chapter 8 – Return on Capital Questions 8-1, 8-3, 8-6, 8-9, Monday May 11, 2009 8-11 Chapter 10 – Credit Analysis Questions 10-1, 10-5, 10-10, Monday May 11, 2009 1-13, 1-18, 10-20, 10-23, 10-30, 10-41
  • 6. Vietnam Program 14) Examination: Upon completion of the projects and the homework on a date after May 11, 2009 to be determined all individual students will be required to take an examination whose purpose will be to ensure that the students have a proper understanding of the concepts of the course. 15) Cheating: Cheating will not be tolerated. Each group is expected to complete the projects without help. Collaboration with other students to ensure understanding of the concepts covered in the project is not considered cheating. However, each group should separately determine their own judgments and conclusions reached from their analysis. As a result, each project should be a group’s unique private work. Collaboration on homework is not considered cheating. In fact, it is recommended. Some of your peers may better understand certain aspects of this course and you may better understand others. However, each student must answer the homework questions in his or her own words. GOOD LUCK IN THE CLASS!!