FNCR2240

This course provides students with a framework for analyzing a firm's past performance, estimating its future performance, and valuing its equity. The course integrates key concepts from accounting, finance, economics, and business strategy, applies them to financial decision-making, and teaches students how to interpret numbers in financial statements.

The main goal of this course is to give students the ability to generate reasonably accurate forecasts of a firm's future financial performance, including revenues, earnings, asset balances, and free cash flows. As this course is case-oriented, a course project will analyze and compare two corporations in similar businesses. Students planning a career in accounting, the financial industry, consulting, and/or general management will find the knowledge acquired in this course relevant. Student Learning Outcomes

• Define basic accounting terminology and the accounting cycle.
  
• Identify the organization and disclosure of information reported in 10-K filings and notes financial statements.
  
• Classify accounts reported on all financial statements.
  
• Classify assets and liabilities that are NOT reported under accounting rules and determine the importance of these off-balance sheet items for understanding the value of a business.
  
• Interpret financial statements, including profit and loss, sales data, inventory turnover, and monthly and year-end reports.
  
• Calculate and interpret financial ratios and understand how to use ratios to compare a firm to its competitors and evaluate ratio changes over time.
  
• Analyze financial statements to determine return on investment, profitability, and decisions for maximum returns.
  
• Examine how accounting errors, whether intentional or unintentional, impact reported income and the book value of equity.
  
• Describe the financial variations of legal business forms including sole proprietorship, partnership, and corporation.
  
• Analyze business scenarios and case studies using financial problem-solving and critical thinking skills.
  
• Utilize technology tools to create and analyze financial statements.