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BA 215 – Fundamentals of Accounting
Fall 2005

[Syllabus]

Schedule  (tentative)

Date

Chapter

Learning Outcomes

Assignment

 

9/27

Chapter 1

Counting the Beans:

Good Financial Information

q       Understand the goals/role of accounting and financial management in the firm.

q       Introduce GAAP: the rules of financial reporting.

q       Discuss different forms of business ownership.

q       Understand the organizational structure of the firm.

q       Define course layout & coverage.

 

Self-Test Personal Balance Sheet

 

9/29

 

Chapter 2

The Structure &

Interrelationships of

Financial Statements

 

q       Introduce financial accounting fundamentals.

q       Introduce Income Stmt, Balance Sheet,  & Cash Flow Statement.

q       Analyze basic business transactions to determine effect on accounts and financial statements.

q       Understand interrelationships between all financial statements.

 

Self-Test Question Set

 

Excel Tutorial

 

10/4

10/6

 

Chapter 3

Balance Sheet

Chapter 4

Income Statement

Case: LJR Part 1

q       Thoroughly understand & analyze classified Income Statement, Balance Sheet, & Statement of Changes in Retained Earnings.

q       Interpret levels and trends in income statement & balance sheet accounts.

q       Understand depreciation accounting & tax/cash flow implications.

Problem Set #1              due

Homework Case#1      10/11

 

 

10/11

10/13

lab*

 
Chapter 5

Profit vs. Cash Flow

Chapter 6

Cash Flow Statement

Case: LJR Part 1

q       Conceptualize cash flow cycle.

q       Understand  cash  vs. accrual basis accounting methods.

q       Understand net profit vs. net cash flow.

q       Construct and understand Cash Flow Statement and inter-

      relationships with Balance Sheet & Income Stmt via lecture case.

Excel Tutorial

 

*BEXL 324 Lab 10/13

 9-10am or 10-11am

 

10/18

10/20

Chapter 7

Critical Performance Factors:  Financial Statement/Ratio Analysis

Case: LJR Part 2

q       Calculate & interpret  financial ratios, including liquidity, asset management & operating efficiency, financial leverage, and market value ratios, utilizing lecture case.

q       Tie financial statements and ratios together to assess strengths and weaknesses of companies, utilizing lecture case.

q       Assess performance using time-series & cross sectional analyses.

 

Problem Set #2     due 10/20

 

LJR Excel (self-test)     

Problem Set #3 (self-test)

 

 

10/25

Krispy Kreme Doughnut

2005 Annual Report

Case Study

q       Apply income stmt, balance sheet & cash flow stmt analysis to KK 2005 financial results, integrating Management Discussion & Analysis of Financial Conditions & Operations.

q       Review Letter to Shareholders.

q       Understand interrelationships between business/operating strategies and financial performance.

q       Review Report of Independent Auditors.

q       Discuss SEC investigation for accounting irregularities/disclosures.

Order or Download Krispy Kreme Doughnut Inc.  2005 Annual Report

 

1-800-457-4779     or

www.krispykreme.com

Investor Relations

 

10/27

MIDTERM #1

CHAPTERS 1 – 7

 

 

 

Date

Chapter

Learning Outcomes

Assignment

 

11/1

 

11/3

 

Chapter 10

The Annual Budget

q       Use various forecasting methods to estimate sales revenue.

q       Utilize the percent of sales method to forecast income statements and balance sheets.

q       Understand the nature of fixed versus variable costs in budgeting.

q       Determine external financing required to support sales growth.

q       Apply  EXCEL spreadsheet models for financial planning, forecasting, and sensitivity analyses.

 

Homework #4

Due 11/10

 

11/8

lab*

 

11/10

 

Romero Lecture Notes

Mathematics of

Compound Interest (Time Value of Money)

 

* Bring financial calculator to class

q       Understand the compounding/discounting process.

q       Using formulas & financial calculators, calculate PV &  FV of lump sums and annuities.

q       Given any 4 of n, i, PV, PMT, and FV, use a financial calculator to find the 5th.

q       Calculate PV, FV, or PMT using semiannual or other compounding periods.

 

Problem Set #5

Due 11/17

 

*BEXL 324 Lab 11/8

 9-10am or 10-11am

 

11/15

lab*

Romero Lecture Notes

Time Value Applications

q       Using financial calculator, apply time value concepts to determine monthly payments on car loans or mortgages, saving for retirement, value of future payment streams, and effective interest rates on loans.

q       Use EXCEL spreadsheet functions to calculate TVM problems.

 

Problem Set #6

Due 11/17

*BEXL 324 Lab 11/15

 9-10am or 11-12pm

 

11/17

Romero Lecture Notes

Investments & Equity Markets

 

Guest Lecturer

q       Understand the interrelationships between personal and corporate financial management.

q       Understand the workings of stock markets & major indices.

q       Understand investment securities (such as mutual funds, bonds, stocks), and learn how to research performance.

 

 

 

11/22

MIDTERM #2

 

CHAPTER 10, Time Value of Money, Investments

 

 

11/24

 

Thanksgiving Holiday

 

    

 

 

11/29

 

Chapter 11

Financing the Business:

Debt vs. Equity Options

q       Discuss types of short term borrowing for working capital needs: revolving credit line, accts receivable loans, factoring receivables, short term bank loans, flooring, & inventory financing.

q       Understand long term debt financing: term loans, bonds, debentures, and common stock & preferred stock.

q       Detail the accounting effects of financing on the balance sheet.

 

 

12/1

Chapters 12

Attract  Outside Investors:

The Entrepreneur’s Path

q       Discuss seed money & sources for start-up companies.

q       Discuss attracting professional investors and venture capitalists.

q       Understand Initial Public Offerings-benefits & pitfalls.

 

 

12/6

12/8

FINAL EXAM 10am class

FINAL EXAM  8am class

    2:00 – 3:50pm

  12:00 – 1:50pm

ALL COURSE

MATERIAL