UNIVERSIDAD
PUERTO RICO EN BAYAMON
#170 Carr. 174, Parque Industrial Minillas
Bayamón, Puerto Rico 00959
Asuntos Académicos
Administración
de Empresas
1.
GENERAL
INFORMATION
COURSE TITLE :
FINANCIAL STATEMENT ANALYSIS
COURSE CODIFICATION : BASE
2007
TEXTBOOK :
FINANCIAL STATEMENT ANALYSIS
Charles Gibson
South Western
Eight
Edition (2001)
CREDIT HOURS : Three (3) credit hours
MEETING HOURS : Three hours a week
PREREQUISITES : None
2. COURSE DESCRIPTION : The course was designed to
develop the
analytical abilities in finance
so that there exist a
major
comprehension in the analysis of the
financial information that banks and credit
institutions
need to evaluate. This include return
on
assets, return on investment, cash flow analysis,
cost
and benefits analysis, increase in current
assets,
investment, changes in financial position,
basic
analysis procedures of financial position,
basic
analysis procedures of financial statement,
horizontal and vertical analysis and ratios.
3. COURSE OBJECTIVES
FINAL OBJECTIVES : Develop the students abilities
in the reading
techniques, interpretations and in the
analysis of
financial statement. Upon finishing this
course the
students should be prepared to make and
analysis
of the financial statement and recommendations
of
the three fundamental aspects of the business
;
profitability, short term and long term solvency.
SPECIFIC OBJECTIVES :
I. Fundamental Concepts : At the end of this unit the students should:
recognize the basic accounting
principles on
which the financial statement are
based.
II . Financial Statements : At the end of this unit the student should be
able
to describe
the different types of business, the
sequence of the accounting procedures,
understand the accounting cycle
and analyze
financial statement; Balance Sheet,
Income Statement, Statement of Retained
Earnings, and Statement of Cash Flow.
III. Basic Analysis : They will be able to analyze the financial
statement using ratio analysis and common
size
analysis. This analysis of ratio includes
short term
and long term liquidity, profitability and
investment analysis.
4. CONTENT OUTLINE AND TIME DISTRIBUTION
TOPICS CHAPTER HOURS
1) Introduction to Financial Reporting 1 3
A) Fundamental
Concepts
II) Financial Statements
A) Form of Business
Entities
2 3
B) Balance Sheet 3 3
C) Income Statement 4 3
D) Statement of
Retained Earnings
III) Basic Analysis 5 6
A) Ratio Analysis
B) Common Size Analysis ( vertical and horizontal)
C) Year to Year Change Analysis
IV) Business Analysis
A) Liquidity of Short
Term Assets 6 3
B) Long term Debt-
Paying Ability
7 3
C) Profitability
8 3
D) Investor Analysis 9 3
V) Statement of Cash
Flow
10 6
A) Operating Cash Flow
B) Financial Ratios
C) Statement of Cash Flow
VI) Analysis of Nike Inc. 10 6
A) Common Size Analysis
B) Three Year Ratio Comparison
C) Ratio Comparison with Industry
VII) Exams
3
TOTAL HOURS 45
5. Evaluation Methods: The evaluation of the students will be realized
by way of:
A) Partials Exams: Three (3) partials exams will
be offered with a value of hundred points, each representative of one fourth
part of the final grade.
B) Final Exam: It will have a value of a hundred
points and will represent one forth part of the final grade.
6) Grade Scale as follows:
100-90 A
89-80 B
79-70 C
69-60 D
59-0 F
7) Bibliography
Financial Reporting
& Analysis
Daniel W. Collins
W. Bruce Johnson
First Edition (1999)
Prentice Hall
Financial Reporting
William H. Beaver
Third Edition (1998)
Prentice Hall
Electronic Bibliography:
http://www.Dialog.com/into/corporate/investons/
http://courses.Washington.edu/acctg515/
http://www.mhhe.com/business/accounting/wild/
http://www.lib.uTexas.edu/subject/business/
financialstatementaanalysis.html
Revised by Prof. Carmen L. Torres
October.2005