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University of Southern California


Marshall School of Business

Leventhal School of Accounting

SYLLABUS -ACCT 581Financial Statement Analysis

Fall 2016 (Tuesday Evening class meeting at 6:30 p.m.)

Room JFF 204

Sections 14269R

6


Marshall School of Business Leventhal School of Accounting

ACCT 581Financial Statement Analysis - Sections 14278R & 14279R

Spring 2018 (Wednesday 6:30pm-9:30pm.) Room JKP 104

Financial Statement Analysis ACCT 581 - Sections 14278R& 14279R

Spring 2018 (Wednesday 6:30-9:30) Room JKP 104

Faculty:

James (Jim) Leonetti, CPA (inactive)

Office location:234A

Office Hours:

Wednesday 2:00PM – 5:00PM

Email:

[email protected] or [email protected]

Course Description

This course is focused on increasing the student’s understanding over how to utilize and effectively analyze the information from financial statements and financial reporting for the purpose of conducting professional financial analysis. An important objective of this course is to provide the student with practical tools and understanding to successful perform financial statement analysis as a professional analyst.

Course Objectives

We will explore how to use financial statement information to evaluate the firm’s past , economics and how to use additional information, such as footnote disclosures, earnings releases, analyst calls, annual report to shareholders and the reporting to the SEC to better understand and analyze financial statement information.

Upon completion of the course, students should have learned the following skills:

1. The skills that will enable you to present financial analysis in a succinct and effective manner

2. The ability to understand and compute the most commonly used ratios and use them in analysis.

3. Locate where critical data may be found in publicly distributed materials of a Company.

4. Understand Non-GAAP measures and ratios and why these are sometimes preferred over GAAP measures.

5. Have the ability to dissect the Statement of Cash Flows and understand cash metrics

6. Understand the elements of core earnings and be capable to detect one-time items and special items.

7. Demonstrate leadership and team skills.

Course Materials

Textbook Financial Statement Analysis by K.R. Subramanyam and J. Wild, (11th edition, 2014)

The textbook can be purchased online or in the bookstore. Make sure that you purchase the 11th edition.

Please note, if you purchase a different edition of the Textbook, that some of the homework problems will be different. Each student is responsible for completing the correct homework assignment.

Additional course materials will be posted onto Blackboard, including:

· Articles of various authors posted on BlackBoard

· Video Material Posted on Blackboard

· Instructor provided materials, including slides, Key Vocabulary Terms, etc.

Any material posted on Blackboard is eligible to be included on any examination, even if not discussed in class.

If you have any questions or need assistance with the Blackboard Course Pages, please contact the Marshall HelpDesk at 213-740-3000 or [email protected].

Access to a computer that will enable you to access BlackBoard is important.

Having a financial calculator that does not have wifi or internet capabilities will be useful on exams

Grading Standards

I intend to adhere to the USC Leventhal School of Accounting and Marshall School of Business grading standards for graduate programs. In general, final course grades at the graduate level in a core course average approximately B+ (3.3), but may vary based on class performance. For elective courses, the class average is usually higher--approximating 3.5, which is between a B+ and an A-. You must receive a C or better to pass a required class, and you must have an overall B average (3.0 minimum) in order to graduate from USC. The graded elements of this course are listed in this syllabus along with information about how they will be evaluated.

While, it is my general expectation that the grades for this class will be earned based upon achieving the approximate percentages of the total scaled points listed below, final grades may also reflect a grading curve which results in the overall class averaging between 3.3 – 3.5 :

· Grade of an A to an A- earned for achieving between 100%-92% of the scaled points awarded.

· Grade of a B+ to a B- earned for achieving between 91%-79% of the scaled points awarded

· Grade of a C+ to a C- earned for achieving between 78%- 67% of the scaled points awarded

· Grade of a D+ to a D- earned for achieving between 66%-54% of the scaled points awarded

· Grade of an F for achieving less than 53% of the scaled points awarded.

Grading elements

The breakdown of the graded elements for this course is listed below:

Possible Percent

Points of Total Points

Class participation and professionalism

50

5%

Individual homework assignments

100 10%

Cash Flow Exam 150 15%

Midterm exam

200 20%

Team Projects and Assignments 200

20%

Final exam

300 30%

Total

1,000 100%

Additional work credit, make up work and extra credit points are generally not available.

The grade of “W” is allowed only if a student withdraws after the official add period and before the end of the drop period during the semester. The grade of incomplete (IN) can be assigned only if there is work not completed because of a documented illness or unforeseen emergency occurring after the drop period of the semester that prevents the student from completing the semester. An “emergency” is defined as a serious documented illness, or an unforeseen situation that is beyond the student’s control, that prevents a student from completing the semester. Prior to the end of the drop period, the student still has the option of dropping the class so incompletes will not be considered. Arrangements for completing an IN must be initiated by the student and agreed to by the instructor prior to the final examination. All work required to replace the IN with a final grade must be completed within one calendar year from the date the IN was assigned. If the student does not complete the work within the year, the IN will automatically be converted to a grade of F.

A more detailed description of the various graded elements of this class is listed below.

Class Participation and Professionalism total points to be earned 50 or 5% of total.

Class participation and professionalism are important in this course. Class participation will be graded based on active, constructive, and positive participation. The instructor may randomly call upon any student in order to observe the preparation of the student and/or to spur discussion and broad participation amongst all members of the class. Students who demonstrate active, positive and constructive participation and/or the ability to respond to random questions may earn the maximum points for participation.

Professionalism will be graded based upon students’ demeanor during class. It is expected that students will be respectful and courteous to others. Any student who does not exhibit courtesy or respect may lose points for that class. Furthermore, disruptive and/or negative behaviors will result in point reductions. Attendance will be taken each class; students cannot earn points for professionalism if not in attendance. If a student cannot attend a class and they must notify me ( via email) AT LEAST 30 MINUTES prior to the start of class, to be eligible to earn points for his/her professionalism. (Taking the time to notify of an absence in advance of class).

Students who enroll after the course has started and did not participate in classes prior to enrollment may be given make up work and/or have the opportunity to earn points that they did not earn by not attending those classes prior to their enrollment. However, the students affected must approach me within one week after enrolling in the course to be eligible for make- up points. Requests for make-up work after the initial one week period will not be considered.

Individual homework assignments 100 points or 10% of the total.

There will be a number of individual homework assignments throughout the semester. These assignments will consist of questions, problem solving, and cases. These individual homework assignments are to be completed by each student without collaboration with others.

The purpose of these assignments is to help the students to focus on key concepts and to demonstrate their individual learning of these concepts. The individual homework assignments will be graded on neatness, completeness, professionalism thoughtfulness and accuracy. While homework, does not need to be printed, homework that the instructor believes is difficult to read or understand, or is sloppy and/unprofessional, then may not be awarded points.

The homework assignments must be turned in on a hard copy, at the beginning of the class session when it is due. If you know that you will miss a class and want homework credit for the assignments due for that class, please email the homework to me prior to the start of that class. Late homework materials will generally not be accepted. It is the instructor’s intention to grade and return homework assignments within one week of the due date. The graded homework assignments will be made available to students for pickup at the beginning of class. If a student believes that homework was incorrectly graded, the student must notify me on or before the next class session after the homework answers are available for to the student . All exams will be final after such time.

The homework assignments are listed in the course calendar, which is part of this syllabus. The homework will be found by reference to questions, exercises and problems at the end of each chapter in the text book, Or, in some cases, it will be Professor provided problems on Blackboard (BB).

Students who enroll after the course has started may be eligible to turn in alternative homework for any assignments that were due prior to them joining the class. The students must see me within 1 week after enrollment to be eligible for the alternative homework. Requests for alternative homework, after being enrolled in the course for more than one week will not be considered.

Cash Flow Examination 150 points or 15% of the total.

The Cash Flow Examination is an examination focused on the preparation and analysis on the Statement of Cash Flows, cash flow from operations, free cash flows and cash metrics. The exam may include multiple choice, problem solving, and logic questions. This exam will be held on March 7, 2018 in our regular classroom. This exam is to be completed individually. There are no scheduled make-up exams or alternative dates of locations to take this exam. Collaboration with anyone else on the Cash Flow Examination is strictly prohibited.

Students may bring their textbook as well as paper versions of notes, lecture and other class materials during the exam. Students are advised to print any materials they wish to refer to during the exam. Laptop computers are not permitted to be turned on during the exam. Additionally, any electronic device with internet, WIFI or Blue tooth capability (E- Devices”)is not permitted to be used during any examination. All E-Devices must be unavailable to students and must be turned to the OFF mode. Calculators that do not have with internet, WIFI or Blue tooth capability may permitted, if specifically stated by the professor on the date of the exam.

The exam may include the preparation of a statement of cash flow, the calculation of free cash flow, cash flow ratios and other cash analysis problems. There are no scheduled make-up exams for this exam. If you have a known schedule conflict for this exam, please discuss it with me immediately. Additionally, if an illness or unforeseen emergency arises, you must contact me as soon as possible so that we can discuss.

The scoring on the cash flow exam may be curved so that the average points earned by the entire class are not less than 3.3 grading point equivalent on any one exam.

The Cash Flow examination will be returned to students on March 28, 2018 and the test answers will be made available to students who took the exam. If a student believes that a question was incorrectly graded, the student must notify me before April 4, 2018. All exams will be final after such time.

Midterm Examination 200 points or 20% of the total.

The Midterm exam will be held on February 14, 2018 in our regular classroom. This exam is to be completed individually. Collaboration with anyone else is strictly prohibited.

Students may bring their textbook as well as paper versions of notes, lecture and other class materials during the exam. Students are advised to print any materials they wish to refer to during the exam. Laptop computers are not permitted to be turned on during the exam. Additionally, any electronic device with internet, WIFI or Blue tooth capability (E- Devices”) is not permitted to be used during any examination. All E-Devices must be unavailable to students and must be turned to the OFF mode. Calculators that do not have with internet, WIFI or Blue tooth capability may permitted, if specifically stated by the professor on the date of the exam.

The exam may include multiple choice, problem solving, and logic questions. The exam may include materials covered in class lectures, assigned in required readings, and also from discussions presented during the weekly team case assignments. There are no scheduled make-up exams for the midterm. If you have a known schedule conflict for this exam, please discuss it with me immediately. Additionally, if an illness or unforeseen emergency arises, you must contact me as soon as possible so that we can discuss.

The scoring on the Midterm exam may be curved so that the average points earned by the entire class are not less than 3.3 grading point equivalent on any one exam.

The Midterm examination will be returned to students on February 28, 2018 and the test answers will be made available to students who took the exam on its scheduled date. If a student believes that a question was incorrectly graded, the student must notify me before March 7, 2018. All exams will be final after such time.

Team Projects and Assignments 200 points or 20% of the total

On the first day of class, teams will be formed and each team will select a publicly traded company from a list that will be provided to them. This company will be that team’s Selected Company for the entire semester. Teams will generally consist of 4-5 members.

Each team will perform various Team Projects and Assignments through-out the semester using information on their Selected Company. The due date for each of the Team Projects and Assignments is listed in the course calendar and the instruction for each Team Project and Assignment is detailed on Exhibit B . The team assignments may consist of written presentations, oral presentations, audience participation, question and answer period of other teams and classroom exercises. It is important to put the names of each Team Member and the number of the Team on each Team Project, Assignment and Exercise.

An important learning objective is for students to work successfully in a team environment. In the event that interpersonal challenges among team members arise, it is the hope that the individuals involved within their respective teams will be able to resolve their differences amongst themselves. In the unfortunate situation where, a student desires to separate from their team or if a team desires to remove a team member, they will need to follow the procedure for doing so outlined in Exhibit A.

The team assignments are to be performed collectively by members of the team, as each team determines in their discretion. It is expected that each team member will fully participate in the team activities and assignments. Part of the Team Projects and assignments is the completion of a Team evaluation, which includes a self-evaluation by each student and an evaluation of each member of their team. Please see a copy of the evaluation form in Exhibit C. Additionally, the evaluation form will also be posted on Blackboard. The evaluation form must be completed and emailed to me by April 25, 2018. Failure to complete the Team Evaluation Form will result in a loss of points.

Team written presentations will be graded on professionalism, neatness, thoughtfulness, consistency and completeness with instructions, and effectiveness of underlying rationale. The Team Written Presentations are due prior to the beginning of class and a hard copy should be turned in to me. Team Written Presentations are to be prepared in advance, outside of class time

Each team will regularly be asked to either make a brief oral presentation to the class and/or to actively participate in the questioning/ evaluation/ presentation of another team’s presentation. Anytime that a team written presentation is due, each team should come to class with the expectation that they may be asked to present their work to the class and/or participate in a question and answer session of another team’s presentation. Oral presentations must never exceed the time allotted. Points will be deducted for exceeding the time allotted or the presentation may be cut short by the professor. Oral presentations should include visual materials to assist the audience in following the oral presentation. If a team is assigned to question/evaluate the presentation of another team, the grading for that week will be based, in part, upon the quality and professionalism of the inquiries. Additionally, not every team will make an oral presentation on their own work during each class session; therefore, it is critical that the quality of the weekly written presentations be such that another team could make an effective oral presentation from the written materials without assistance.

There may also be classroom exercises for each team in which each teams will use class time to explore a topic or a case relevant to the materials being discussed.

Final Examination 300 points or 30% of the total

The Final Examination is comprehensive and cumulative. The exam may include multiple choice, problem solving, and logic questions. This exam will be held on May 2, 2018 beginning at 7:00 pm, and the location will be in TBD. The date of the Final Examination is established by the university and the instructor may not change the date or time of the final exam

This exam is to be completed individually. Collaboration with anyone else is strictly prohibited.

There are no scheduled make-up exams for this exam. If you have a known schedule conflict for this exam, please discuss it with me immediately. Additionally, if an illness or unforeseen emergency arises, you must contact me as soon as possible so that we can discuss.

Students may bring their textbook as well as paper versions of notes, lecture and other class materials during the exam. Students are advised to print any materials they wish to refer to during the exam. Laptop computers are not permitted to be turned on during the exam. Additionally, any electronic device with internet, WIFI or Blue tooth capability (E- Devices”) is not permitted to be used during any examination. All E-Devices must be unavailable to students and must be turned to the OFF mode. Calculators that do not have with internet, WIFI or Blue tooth capability may permitted, if specifically allowed by the professor on the date of the exam.

The scoring on the Final exam may be curved so that the average points earned by the entire class are not less than 3.3 grading point equivalent on any one exam.

The Final examination will graded shortly following the date of the exam. All exam results are final after the score is posted.

Statement of Academic Conduct

USC seeks to maintain an optimal learning environment. Students are expected to submit original work. They have an obligation both to protect their own work from misuse and to avoid using another’s work as their own. All students are expected to understand and abide by the principles of academic honesty outlined in the University Student Conduct Code (see University Governance, Section 11.00) of SCampus (www.usc.edu/scampus or http://scampus.usc.edu). The recommended sanctions for academic integrity violations can be found in Appendix A of the Student Conduct Code

Students enrolled in any class offered by the Leventhal School of Accounting are expected to uphold and adhere to the standards of academic integrity established by the Leventhal School of Accounting Student Honor Code. Students are responsible for obtaining, reading, and understanding the Honor Code System handbook. Students who are found to have violated the Code will be subject to disciplinary action as described in the handbook. For more specific information, please refer to the Student Honor Code System handbook, available in class or from the receptionist in ACC 101

Classroom Etiquette

It is expected that everyone will practice courtesy, professionalism and respect to one another while in the classroom.

The use of any personal communication device such as, CELL PHONES, TEXTING DEVICES, I-pods, etc. is considered to be unprofessional. Those devices are not permitted to be used at any time during class, and those devices must be in the off position, with the screen face down at all times when a student is in class. Violation of this requirement may result in a loss of professionalism points.

Advance Preparation Expectations

Students are expected to complete the individual advance required reading, individual homework assignments before the start time of each scheduled class meeting. Some of the reading assignments are not in the text book and the advance reading materials will be available in Blackboard. A schedule of the advance reading and homework assignments is included in course calendar.

Team Presentations are expected to be completed prior to the start of class.

Technology Policy

Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise stated by the respective professor and/or staff. Use of other personal communication devices, such as cell phones, is considered unprofessional and is not permitted during academic or professional sessions. ANY e-devices (cell phones, iPads, other texting devices, laptops, I-pods) must be completely turned off during class time. Upon request, you must comply and put your device on the table in off mode and FACE DOWN. You might also be asked to deposit your devices in a designated area in the classroom.

Video recording of faculty lectures is not permitted due to copyright infringement regulations. Audio recording is only permitted if approved in writing in advance by the professor for each specific class session to be recorded. Use of any recorded or distributed material is reserved exclusively for the USC students registered in this class.

Use of Electronic Devices during Class

During class lectures, students may be permitted to use electronic devices such as laptop computers, tablets and other internet connected devices for the purpose of note taking, for research, reviewing materials that are on Blackboard, and to gain access to materials that are relevant to the lecture. Students may also use electronic devices while they are making presentations to the class and during Team activities that occur during class time.

Any electronic device that is being used must be operating in the silent mode. If the use of an electronic device is disturbing to any other student, then the use of any and or all electronic devices may be prohibited temporarily or for the duration of the class at the sole discretion of the professor.

Furthermore, during certain class sessions, all electronic devices are required to be turned to the OFF Position. These class sessions include:

· During any class session that a guest speaker is in attendance.

· During any class session where other members of the class are making a presentation (The presenters may use electronic devices during their presentations, but those in the audience may not.)

· During any examination or test taking time.

The use of any personal communication device such as, CELL PHONES, TEXTING DEVICES, I-pods, etc. are not permitted to be used at any time during class, such devices must be in the off position, with the screen face down.

Recordings

No student may record any lecture, class discussion or meeting with the professor without the professor’s prior express written permission. The word “record” or the act of recording includes, but is not limited to, any and all means by which sound or visual images can be stored, duplicated or retransmitted whether by an electro-mechanical, analog, digital, wire, electronic or other device or any other means of signal encoding. The professor reserves all rights, including copyright, to lectures, course syllabi and related materials, including summaries, PowerPoints, prior exams, answer keys, and all supplementary course materials available to the students enrolled in this class whether posted on Blackboard or otherwise. They may not be reproduced, distributed, copied, or disseminated in any media or in any form, including but not limited to all course note-sharing websites. Exceptions are made for students who have made prior arrangements with DSP and the professor.

STUDENTS SHOULD BE AWARE THAT THE PROFESSOR RESERVES THE RIGHT TO RECORD ANY AND ALL CLASS SESSIONS.

The professor reserves the right to post any class recordings on to BlackBoard. The use of any recorded or distributed material is reserved exclusively for the USC students registered in this class

Students with Disabilities

USC is committed to making reasonable accommodations to assist individuals with disabilities in reaching their academic potential. If you have a disability which may impact your performance, attendance, or grades in this course and require accommodations, you must first register with the Office of Disability Services and Programs (www.usc.edu/disability). DSP provides certification for students with disabilities and helps arrange the relevant accommodations. Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me as early in the semester as possible. I would appreciate it if you would kindly provide me with your letter of verification at least 7 days prior to its first use. DSP is located in GFS (Grace Ford Salvatori Hall) 120 and is open 8:30 a.m.–5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776. Email: [email protected].

Discrimination, sexual assault, and harassment

Discrimination, sexual assault, and harassment are not tolerated by the university. You are encouraged to report any incidents to the Office of Equity and Diversity http://equity.usc.edu/ or to the Department of Public Safety, http://capsnet.usc.edu/department/department-public-safety/online-forms/contact-us.

This is important for the safety of the whole USC community. Another member of the university community – such as a friend, classmate, advisor, or faculty member – can help initiate the report or can initiate the report on behalf of another person. The Center for Women and Men http://www.usc.edu/student-affairs/cwm/ provides 24/7 confidential support, and the sexual assault resource center webpage https://sarc.usc.edu/reporting-options/ describes reporting options and other resources.

Support Systems

Student Counseling Services (SCS) - (213) 740-7711 – 24/7 on call

Free and confidential mental health treatment for students, including short-term psychotherapy, group counseling, stress fitness workshops, and crisis intervention. https://engemannshc.usc.edu/counseling/

National Suicide Prevention Lifeline - 1-800-273-8255

Provides free and confidential emotional support to people in suicidal crisis or emotional distress 24 hours a day, 7 days a week. http://www.suicidepreventionlifeline.org

Relationship & Sexual Violence Prevention Services (RSVP) - (213) 740-4900 - 24/7 on call

Free and confidential therapy services, workshops, and training for situations related to gender-based harm. https://engemannshc.usc.edu/rsvp/

Sexual Assault Resource Center

For more information about how to get help or help a survivor, rights, reporting options, and additional resources, visit the website: http://sarc.usc.edu/

Office of Equity and Diversity (OED)/Title IX compliance – (213) 740-5086

Works with faculty, staff, visitors, applicants, and students around issues of protected class. https://equity.usc.edu/

Bias Assessment Response and Support

Incidents of bias, hate crimes and microaggressions need to be reported allowing for appropriate investigation and response. https://studentaffairs.usc.edu/bias-assessment-response-support/

Student Support & Advocacy – (213) 821-4710

Assists students and families in resolving complex issues adversely affecting their success as a student EX: personal, financial, and academic. https://studentaffairs.usc.edu/ssa/

Diversity at USC – https://diversity.usc.edu/

Tabs for Events, Programs and Training, Task Force (including representatives for each school), Chronology, Participate, Resources for Students

Emergency Preparation

In case of an emergency if travel to campus is not feasible, the USC Emergency Information web site (http://emergency.usc.edu/) will provide relevant information, such as the electronic means the instructors might use to conduct their lectures through a combination of USC’s Blackboard learning management system (blackboard.usc.edu), teleconferencing, and other technologies.

Emergency Phone Numbers

Emergency Info Line

213-740-9233

USC Emergencies 213-740-4321

USC Public Safety—Non Emergencies: 213-740-6000

Information

Tune to KUSC Radio at 91.5 (FM)

USC Info Line

213-740-2311

Police/Fire Emergencies 911

Appendix I. MARSHALL GRADUATE PROGRAMS LEARNING GOALS

How ACCT 581 Contributes to Marshall Graduate Program Learning Goals

Marshall Graduate Program Learning Goals

ACCT 581 Objectives that support this goal

Assessment Method

Learning Goal #1: Develop Personal Strengths.

Our graduates will develop a global and entrepreneurial mindset, lead with integrity, purpose and ethical perspective, and draw value from diversity and inclusion.

1.1 Possess personal integrity and a commitment to an organization’s purpose and core values.

1.2 Expand awareness with a global and entrepreneurial mindset, drawing value from diversity and inclusion.

1.3 Exhibit awareness of ethical dimensions and professional standards in decision making.

Learning Goal #2: Gain Knowledge and Skills.

Our graduates will develop a deep understanding of the key functions of business enterprises and will be able to identify and take advantage of opportunities in a complex, uncertain and dynamic business environment using critical and analytical thinking skills.

2,3,4,5,6

Team Assignments,

Homework,

Exams

2.1 Gain knowledge of the key functions of business enterprises.

2.2 Acquire advanced skills to understand and analyze significant business opportunities, which can be complex, uncertain and dynamic.

2,3,4,5,6

Team Assignments,

Homework,

Exams

2.3 Use critical and analytical thinking to identify viable options that can create short-term and long-term value for organizations and their stakeholders.

2,3,4,5,6

Homework

Exams

Learning Goal #3: Motivate and Build High Performing Teams.

Our graduates will achieve results by fostering collaboration, communication and adaptability on individual, team, and organization levels.

1,7

Team Assignments

Class Participation &

Professionalism

3.1 Motivate and work with colleagues, partners, and other stakeholders to achieve organizational purposes.

7

Team Assignments


Professionalism

3.2 Help build and sustain high-performing teams by infusing teams with a variety of perspectives, talents, and skills and aligning individual success with team success and with overall organizational success.

7

Team Assignments


Professionalism

3.3 Foster collaboration, communication and adaptability in helping organizations excel in a changing business landscape.

1,7

Team Assignments


Professionalism

Appendix II. USC LEVENTHAL STUDENT LEARNING OUTCOMES FOR

MASTER OF ACCOUNTING

AND MASTER OF BUSINESS TAXATION PROGRAMS

How ACCT 581 Contributes to Leventhal Graduate Program Learning Goals

Marshall Graduate Program Learning Goals

ACCT 581 Objectives that support this goal

Assessment Method*

Learning Goal #1: Technical, Conceptual, Problem-Solving

Students will be competent in and be able to apply discipline-specific knowledge and skills in the fields of accounting or taxation. This learning outcome includes the development of critical thinking and problem-solving skills, as well as an understanding of the strategic role of accounting and taxation in business organizations and society.

2,4,5,6

Exams

Homework

Team Assignments

Learning Goal #2: Professional Development

Students will be able to communicate clearly and strategically, after considering the relevant audience, situation, and purpose of the communication. Students will demonstrate the ability to work productively with others to accomplish established goals.

1, 7

Team Assignments

Homework

Learning Goal #3: Research/Life-Long Learning

Students will be able to use relevant research databases and academic/professional literature to gain new knowledge and analyze business situations.

3

Exams

Team Assignments

Learning Goal #4: Ethical Principles and Professional Standards

Students will be able to apply ethical principles and professional standards in analyzing situations and making informed decisions.

Learning Goal #5: Ethical Principles and Professional Standards

Students will be able to demonstrate an international perspective and appreciation for diversity and cultural differences, along with their significance in global business.

Course Calendar

Homework Team

Date Class # Topics to be Covered Advance Reading Due Assignments

01/10

1

Introduce Instructor, review syllabus

Form Class into Teams and

Two Class exercises

Review of the Form 10-K

BakerCorp 10-K

Syllabus

Team Assignment #1 materials Blackboard (BB)

Pages 26-27 Textbook


NONE

Optional Advance Prep for Team Assignment #1

See Blackboard

01/17

2

Introduction to FSA

Team Assignment #2

Common Size & Index Analysis

Trend Analysis and % change analysis

Pages 3-47 Textbook

Key Terms (BB) Return on Investment Metrics

Question 2-2

Question 2-3

Exercise 2-5

Team Assignment #2

See Exhibit B

01/24

3

Review Profitability Metrics and Ratios

Net Operating Income and Other Non-GAAP Key Profitability Metrics


Key Terms (BB)

Profitability Ratios, Metrics and Terms

See (BB) for a homework Problem.

Also-Exercise 1-9

Team Assignment #3

See Exhibit B.

01/31

4

Team Assignment #4

Liquidity Analysis

Pages 226- 242 Textbook


See (BB) for homework problem

TEAM Assignment #4

See Exhibit B

02/07

5

Solvency Analysis

Class exercise- Team Assignment # 5 will be completed in class See Exhibit B



Problem 4-2 Question 10-14

Question 10-16

Team Assignment # 5 complete in class

02/14

6

MID-TERM EXAMINATION

NONE

NONE

NONE

02/21

7

Review Mid-term

Introduction to Cash Flow Statement


NONE

NONE

02/28

8

Review Cash Flow

Team Assignment # 6


Problem 7-3(a)

Team Assignment # 6

See Exhibit B

03/07

9

Cash Flow Mid-term

NONE

NONE

NONE

03/14

10

Spring Break

NONE

NONE

NONE

03/21

11

Review Cash flow Midterm

Understanding Long Lived Assets Accounting for Inventory and depreciation


Pages 275-299

NONE

NONE

03/28

12

Earnings Management

Classroom Team exercises



See (BB) for a homework problem

NONE

04/04

13

Stock Options Analysis

Earnings Per Share

Team Assignment #7


Question 2-49

Question 2-50

Question 6-7

Question 6-9

Team Assignment #7 See Exhibit B

04/11

14

Pension Plans and contingent Liabilities

Team Assignment #8



Team Assignment #8

See Exhibit B

04/18

15

Hedging and derivatives

Team Class Assignment # 9.

Materials will be provided in class

Pages 299-322 Text book


Team Assignment # 9 See Exhibit B

04/25

16

Market Measures

Team Assignment #10

Pages 617-637

Question 5-10

Question 5-11

Question 5-12

Question 5-13

Team Assignment #10 Assignment #11

See Exhibit B

05/02

17

FINAL EXAMINATION

Study for Final

NONE

NONE

EXHIBIT A- Process for Team Separation

An important learning objective of this course is for students to develop leadership and team skills. While many, if not all, organizations have some level of dysfunction, in most cases, working through the dysfunction to a successful conclusion is the best course of action. It is a very serious matter if there is dysfunction in a team to point when separation is contemplated. However, in the uncommon situation when separation is unavoidable, the processes below shall govern.

A member of a team wishes to separate from the team. If a member of a team wishes to separate from his/her team, then the person desiring to separate must first meet with me and discuss the issues and their rationale for desiring separation. Depending on the circumstances, I may attempt to arrange a mediation conference to resolve the issues. If I concur that reconciliation cannot be made, the separation shall occur ; however, depending on the circumstances, I may penalize any and all parties grading points. The individual who is separating may request to be assigned to another team( team to be determined by me) or shall have the right to form a single member team and in such case, shall be responsible for all of the team course work the same as any other team.

A team wishes to remove a member from team. If a team wishes to separate itself from a particular member, then those members should meet with me collectively as a group and discuss the issues and rationale for separation. Depending upon the circumstances, I may attempt to arrange a mediation conference to resolve the issues. If I concur that reconciliation cannot be made, then the separation shall occur; however, depending on the circumstances, I may penalize any and all parties grading points. The individual who is being asked to leave the team shall have the right to be assigned to another team or to work as a single member team. If the individual chooses to work as a single member team, then they are responsible for all of the team course work the same as any other team.

EXHIBIT B- TEAM ASSIGNMENTS (1 of 3)

TEAMPOINTS

ASSIGNMENT PER

#ASSIGNMENT DESCRIPTIONASSIGNMENT

Classroom exercise. Students should review the materials

1on Blackboard regarding Team Assignment # 1.5

2

EachteamshouldprepareapresentationintroducingtheTeam'sselectivecompanyto

theclass.Thepresentationshouldbeawrittenpresentationthatintroducesthe

Company,itsprimarylinesofbusiness,itsprimaryproductsandservices,the

countriesorregionsinwhichitoperates,thenumberofemployees,thelocationof

itscorporateheadquarters,thenamesoftheChairoftheBoard,theChiefExecutive

OfficerandtheChiefFinancialOfficer.Thepresentationshouldprovidesome

historicalcontexttothesizeoftheCompaniesbusiness(e.g.revenue,net

income,totalassets,etc.).Thepresentationshouldincludethenameoftheauditing

firm,thefeespaidfortheannualaudit,thebaseandincentivecompensationofthe

CEO,andCFO.Thenameoftheauditcommitteechair.Theoralpresentationtothe

classmustbenomorethan5minutes.Teamsthatexceedthetimelimitwillbe

penalized points20

3

EachteamwillprepareawrittenpresentationwhichincludesaCommonSizeand

IndexIncomeStatementsfortheirrespectiveCompanyforthepast5years.

Additionally,theTeamshouldcomputethecompoundedannualgrowthrateof

revenue,netincome,andtotalassets.ThePresentationshouldalsoincludeathree

yearcomparisonoftheeffectiveincometaxrateforthecompany.Thetotaltime

allottedfortheoralpresentationis7minutes.Itispossiblethatnotallteamswillnot

present, but all teams should be prepared to do so.

20

4

Eachteamwillprepareawrittenpresentationontheirselectedcompany.The

presentationwillcomparetheprimaryprofitabilitymetrics(WhetheritbeEBITDA,

AdjustedEBITDA,AdjustedNetIncome,oranyothermetric)thattheCompany

discusses in it most recent press release. The presentation should attempt to identify

theitemsthattheCompanyiscallingoutasnon-recurring,orone-timeitems.The

TeamshouldcomputeitsdeterminationofCoreEarningsforthelasttwoyearsand

comparetotheCompany'searningmetricsthatitusesinitsrelease.Highlightthe

differencesbetweentheTeam'sassessmentofCoreEarningsandtheCompany

earningsmetrics.Thetimeallottedfortheoralpresentationis7minutes.Itis

possible that not all teams will not present, but all teams should be prepared to do so

20


TEAMPOINTS

ASSIGNMENT PER


5

EachTeamwillprepareapresentationwhichanalyzestheLiquidityandSolvencyof

theirselectedCompany.Thispresentationwillbepreparedinclassattheconclusion

ofthelecture.Teamsmaychoosetodosomeadvancepreparaation,buttherewillbe

sufficienttimeinclassforthisexercisetobeperformed.(onlyteammembers

attendingtheclasswillreceivepoints)TheanalysisshouldincludebothCoverage

RatioAnalysis,LeverageRatioAnalysis,WorkingCapitalandLiquidityAnalysisratios.

TheTeamshouldprovidetheiropinionsandevaluationoftheLiquidityandSolvency

oftheirCompanyaspartofthepresentation.Thetotaltimeallottedfortheoral

presentationis7minutes.Itispossiblethatnotallteamswillnotpresent,butall

teams should be prepared to do so.

20

6

EachTeamwillprepareawrittenpresentationoftheirSelectedCompany.The

presentationshouldcontainanalysisontheStatementsofCashFlow,FreeCashFlow

(FCF),FreeCashFlow(Leveraged)(FCFE),andFreeCashFlowtoCommonEquity.

Additionally,eachTeamshouldprovidecashflowanalysisonthefollowing:

evaluatingiftheirfirmisspendingsufficientcapitaltomaintaintheirfleetoffixed

assetsatastabilelevel,evaluatingthetrendofcapitalspending.Determiningthe

dividendpay-outratio,determineifcashflowisbeingimpactedbychangesto

workingcapitalmanagement.Thetotaltimeallottedfortheoralpresentationis7

minutes.Itispossiblethatnotallteamswillnotpresent,butallteamsshouldbe

prepared to do so.

20

7


presentationshouldcontainanalysisonarecentearningsreleaseandorconference

call.Theobjectiveoftheanalysisistoattempttoidentifyallitemswherethe

Companywaspracticingsomeformofearningsofexpectationsmanagement.

ImportantthingstoindicatewillbeiftheCompanyhaschangedadefinitionofanon-

GAAPnumberorchangedanearningstarget,ordoesnotspeaktoasignificantloss,

expenseitemorcashflowdeficiency.Feelfreetofocusonthewordsusedbythe

speakersontheearningscalls,orthepressreleasewheretheCompanyistryingto

managetheexpectationsand/oropinionsoftheaudience.Thetotaltimeallottedfor

the oral presentation is 8 minutes. It is possible that not all teams will not present, but

all teams should be prepared to do so.

20


TEAMPOINTS

ASSIGNMENT PER


8


presentationshouldcontainapresentationontotalstockoptionsoutstanding,

computetheoptionsoverhang,andthenumberofstockoptionsissuedtothefive

mosthighlycompensatedemployee.Ifpossible,thepresentationshouldattemptto

computetheOptionOverhangdirectlyrelatedtothefivemosthighlycompensated

employees(hintlookattheProxydocument).Thetotaltimeallottedfortheoral

presentationis7minutes.Itispossiblethatnotallteamswillnotpresent,butall

teams should be prepared to do so.

20

9

Thereisnoadvancematerialsforthisclassroomexercise.Eachteamwillbegivena

publiccompany10Katthestartofclass.(Eachcompanyassignedtoeachteamwill

alsobepostedinBlackboard,alongwiththe10Kpriortothestartofclass..soitwillbe

helpfultoeachteamtohaveinternetaccessandaninternetconnecteddevice).Each

teamwillthenbeaskedtodeterminethefollowing:(a)theAnnualPensionandProfit

Sharingexpenseforthepasttwoyearsandhowmuchofthatexpenserelatestoa

DefinedContributionPlanvsaDefinedBenefitPlan,(b)theamountofthenet

pensionassetorliabilityonthebalancesheet,andtheamountoftheunfunded

pensionliabilitythatisnotrecordedonthebalancesheet.Theteamsshouldalso

determineiftheCompanyhasanactive,terminatedorsuspendedDefinedBenefit

PlanandanActiveDefinedContributionPlan.IftheCompanyhasadefined

ContributionPlan.TheTeamswillhave30minutesofclasstimetoworkonthe

exerciseandthenwillhaveafewminutestodiscusstheirresultswiththeclass.(only

team members who attend class will receive points for this exercise)

20

10


presentationshouldcontainapresentationofallofthepotentialoffbalancesheet

liabilitiesoftheirselectedCompany.ItemstoconsiderareitemssuchasChangeIn

Controlitems,DefinedPensionLiabilities,Guaranteesofdebtorliabilitiesofothers,

lettersofcredit,etc.Thetotaltimeallottedfortheoralpresentationis7minutes.Itis

possible that not all teams will not present, but all teams should be prepared to do so.

15

11

Each member of each team will complete a team evaluation form ( see Exhibit C to the

syllabus).Ifastudentfailstoturnafullycompletedformintome(either

electronicallybyemailorbyhardcopy)onorbeforeApril25,thenthestudentmay

loseupto10points.Thepurposeofthisevaluationistoprovideadditionalassistance

tomeforthepurposeofunderstandingandevaluatingtheperformanceofeach

student's participation as a member of the team.

20

EXHIBIT C- TEAM EVALUATION FORM

YOUR NAME

YOUR TEAM #

Name of the Team Member

being evaluated

( include your own name in

the self evaluation position)

ASSESSMENT OF THE

TEAM MEMBER PERFORMANCE

( USE A SCALE OF 100 TO 75).

100 BEING PERFECT AND 75 BEING

BELOW AVERAGE)

Self Evaluation

TEAM member #1

TEAM member #2

TEAM member #3

TEAM member #4

****Name of the Most Valuable Member of the Team.

( You may vote for yourself)

Name of the Most Valuable Team Member above

Use the space above to provide specific reasons for the rating of each team member, including yourself.

***

The evaluation should be based upon the following factors: ( Leadership, Teamwork, Quality of Materials Prepared, Reliability)

Please cite examples of each team members performance to support your evaluation. Please use the reverse side if more space is needed.

****

Please support your rationale for naming a team member as the MVP.

EVALUATION OF THE PERFORMANCE OF TEAM MEMBERS

RATE PERFORMANCE OF EACH TEAM MEMBER ON A SCALE OF 100-75.

SCORE OF 100 = PERFECT, SCORE OF 75 = BELOW AVERAGE ***

ACCT 581 Spring 2018

TEAM EVALUATIONS

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