Oregon State University

Oregon State University Home Page

BA 215 Honors Section – Fundamentals of Accounting
Winter 2006

Madeleine B. Romero

[215 Home] [Course Schedule][Homework Problems][Homework Solutions][Krispy Kreme]

Syllabus

HONORS COURSE DESCRIPTION

The course covers essential topics in accounting and finance, exclusively designed for non-business honors students. BA215H ties together the basic concepts and practicum of accounting with corporate and personal finance.  Topics include: understanding, interpreting, and forecasting financial statements; cost analyses and budgeting; time value of money valuation techniques to determine present and future values of cash flow streams, evaluate investments, calculate loan payments, determine rates of return, etc.; and types and sources of short-term and long-term financing.  Emphasis is placed on the application of accounting and finance principles to real-world companies from an investor, lender, and managerial perspective.  Cases will be used to facilitate the integration of accounting and finance concepts with current applications.

 

 COURSE LEARNING OBJECTIVES

 

·        Understand cash flow versus accrual accounting concepts.

·        Understand and interpret income statement, balance sheet, and cash flow statements.

·        Calculate and interpret basic financial ratios.

·        Construct projected financial statements, budgets, and variance analyses.

·        Use Excel computer spreadsheets to forecast financial statements & solve financial problems.

·        Understand the nature of fixed versus variable costs and apply to sensitivity analyses.

·        Understand time value of money calculations and applications in both corporate and personal finance, utilizing a financial calculator and Excel spreadsheet functions.

·        Understand the capital markets and sources of short-term and long-term financing.

 

 Course Learning Objectives Unique to Honors Section:

·        Apply accounting and finance principles to an extensive financial and operational analysis of ten publicly-held companies in disparate industries.

·        Develop effective business communication and oral presentation skills.

·        Foster a multi-disciplinary, team approach to problem solving.

·        Encourage critical thinking and student involvement in the application of course material to evaluate complex, current real-world corporate situations and problems.

·        Investigate the Internet resources available to research and analyze financial data.

·        Develop Excel spreadsheets to compile and examine data for effective decision-making.

 

More specific daily learning objectives are detailed in the Course Outline and Schedule.

 

REQUIRED TEXT & MATERIALS

 

1) How to Read A Financial Report, for Managers, Entrepreneurs, Lenders, Lawyers, and Investors (sixth edition); by John A. Tracy, Ph.D.,CPA

2) Harvard Business School Case: Drivers of Industry Financial Structure (HBS #201-039), available to download at http://www.hbsp.harvard.edu or 1-800-545-7685 for $6.00.

3) Romero Lecture Notes, Cases, & Problem Sets– available on my website.

4) Financial Calculator-HP12C,HP10B,or TI BA2+ recommended.  Tutorials on my website    

5) EXCEL Tutorial - available on reserve at OSU library. Other suggested website for interactive tutorial: www.extension.iastate.edu/Pages/Excel/homepage.html

 

 

GRADING  PROCEDURE 

 

  MIDTERM                                                                                          30%

  COMPREHENSIVE FINAL                                                                30%

  GROUP TERM PROJECT, PRESENTATION, & DISCUSSION                 20%                

  HOMEWORK PROBLEM SETS                                                      10%

  EXCEL CASE STUDY                                                                      10%

 

You are guaranteed at least the following grade if your weighted average course score falls within the following percentiles: 

 

A   93-100

B+   87-90

C+   77-80

D+    67-70

A-   90-93

B    83-87

C    73-77

D     60-67

 

B-   80-83

C-   70-73

F     below 60

 

Additionally, a curve may be applied to these scores. Class participation is encouraged, and may be used in the final grade evaluation if the student is border-line between two grades. 

 

NO MAKE‑UP EXAMS WILL BE GIVEN.  NO EXCUSES ACCEPTED.  The course outline lists TENTATIVE dates for the exams.  You are responsible to take the exam whenever it is given, even if the tentative date changes. 

 

 

ASSIGNMENTS

 

(1) Homework Problem Sets (individual)

Homework assignments are detailed in the attached Course Outline, and consist of Problem Sets which are available on Romero’s website.  Most of the assignments will be graded on a completion basis; some will be graded on accuracy/depth of analysis.  It is fully expected that the student will do all the homework in order to be prepared for class discussion, understand the material, and perform well on the exams.

 

(2) Excel Case Study  (individual)

You are required to develop an Excel spreadsheet model to forecast a company’s income statements and balance sheets (for 3 years) and from that determine external financing requirements.  The model will be programmed to enable sensitivity analyses to evaluate the effect of changes in input variables on key output data: sales, net income, financing requirements.  Specific requirements are documented in BA215H Excel Forecasting Case file on my web site.

 

(3) Group Term Project & Presentation (2 person group)

This Harvard Business School case study will enable you to apply your fundamental knowledge of financial statements and financial analysis techniques to real-world company information.  Students will be required to assess and interpret actual financial ratios, common-sized income statements and balance sheets, and operational data from ten companies in disparate industries.  Students will work in groups of two to facilitate a comprehensive, multi-disciplinary approach to data interpretation.  Groups are required to identify the companies (by defined industries).  Teams will create and deliver a 20 minute PowerPoint presentation, and submit documentation of rationale, supporting internet research, and conclusions.  The subsequent class session will be an open forum for class discussion, with teams either supporting or changing their positions based on their own research and/or insight gained from class discussion. The class collectively will then come up with a final solution to the case.  Specific requirements are documented in BA 215H Term Project & Presentation file on my website.

 

 

GENERAL ASSIGNMENT INFORMATION

With a few exceptions, the due date will be the week immediately after relevant chapter material is covered in class. Specific instructions will be announced in class.  Once homework is turned in, subsequent additions or corrections will not be accepted. Late assignments will be penalized, and will ONLY be accepted at the beginning of the next class session. Only printed hard-copies of assignments (not electronic e-mailed versions) will be accepted.  SHOW ALL YOUR WORK.

 

For designated group assignments, all members must work together on them; do not simply allocate work.  Only one paper should be turned in per group, with all group members’ names on the front page. 

 

It is assumed that in this honors class, the student will independently gain very basic proficiency in Excel prior to relevant class assignments, utilizing material that the instructor has put on library reserve and/or using suggested website (above) for interactive Excel tutorial.  For Excel assignments, students’ names must be printed within the Excel spreadsheet (at top), or no credit will be given.  Excel assignments must consist of two parts: (1) spreadsheet print-out including verbiage where appropriate, and (2) a diagnostic sheet print-out.  A diagnostic sheet is a printing of the cell formulas rather than the results of those formulas, and can be created as follows:

  • Save your spreadsheet as a separate file.
  • Use the Tools menu and choose Options.
  • Choose the View tab and select Formulas to create the diagnostic sheet.
  • Widen the columns to show the entire formula in each cell.
  • Include Row and Column headings on your sheets by going to File on the main menu bar and then Page Setup.
  • Choose the Sheet tab and click in the box Row and Column Headings and Gridlines.