HOUSTON COMMUNITY COLLEGE SYSTEM
BNKG 1356
FINANCIAL MANAGEMENT
ANALYZING FINANCIAL STATEMENTS
Instructor: Kurllenne Martin
Cell Phone 281-630-0413
Email kkdmartin@yahoo.com
COURSE DESCRIPTION
A STUDY OF THE PROCESS OF EVALUATING FINANCIAL STATEMENTS, CASH FLOW, AND
RATION ANALYSIS OF INDIVIDUALS AND BUSINESSES WITH AN EMPHASIS ON THE
RELATIONSHIP OF COMPARATIVE ANALYSIS AND INDUSTRY STANDARDS. 3 credits (3
lecture).
TEXTS AND/OR REFERENCES
Analyzing Financial Statements (7th edition) by Thomas Carlin, American Bankers Association
COURSE LEARNING OUTCOMES
1.
Through in class participation, preparation and presentment of a term project, and written tests the
student will demonstrate knowledge of how to effectively assess a borrower’s ability to repay
loans.
2.
The student will be able to communicate how a company’s type of business, legal structure, size,
and management strategies affect the way a lender conducts financial analysis through written
exercises and/or tests.
3.
The student will demonstrate the ability to analyze income statements, balance sheets, and pro
forma statements through written exercises and/or tests.
4.
The student will calculate key financial ratios and use them to compare a company’s
performance with that of the company’s industry through participating in class discussions and/or
activities, a research project and through written tests.
5.
The student will use advanced analytical techniques: sensitivity analysis, s
sustainable growth, working investment analysis, breakeven analysis and operating leverage
through participation in class, group, and/or homework assignments, a research project and
written tests.
6.
The student will determine when a funds flow statement is required through class assignments
and written tests.
7.
The student will construct and analyze long-run, multiple-year forecasts of income statements and
balance sheets through classwork, homework, a research project and written tests.
8.
The student will construct and interpret a cash budget through classwork, homework and written
tests.
SCANS (Secretary’s Commission Addressing Necessary Skills) OBJECTIVES
1.
Working with Information:
Acquire/evaluate data
Organize/maintain information
Interpret/ communicate data
Through participation in the classwork, group exercises and term project, the student will learn to
acquire data and evaluate the application of data. By completing the term project, the student will
demonstrate the ability to organize and maintain information through out the semester. Through
analyzing financial data, calculating key financial ratios and using them to make comparisons and
draw conclusions and through constructing financial statements and budgets the student will
demonstrate the ability to interpret and communicate data.
2.
Demonstrating Basic Skills:
Reading
Listening
Writing
Speaking
Arithmetic/Mathematics
By completing weekly reading assignments in the text and by reading other information for the
term project, the student will demonstrate reading ability. The student will demonstrate writing
ability by completing the research project and by completing written assignments and/or
answering written test questions. By correctly calculating key financial ratios and solving
problems in assignments and/or on written tests, the student will exhibit skills in arithmetic and
mathematics. The student will listen to weekly lectures and class discussions then apply the
information they listened to answer written assignment and/or test questions. The student will
exhibit speaking skills through group work and in-class participation.
3.
Demonstrate Thinking Skills: Creative Thinking
Decision Making
Problem Solving Thinking Logically
Through completing the research project, the student will practice creative thinking, use decision
making skills and think logically. By correctly analyzing financial statements, calculating key
financial ratios and applying them to business situations and answering questions in assignments
and/or on written tests, the student will exhibit the ability to assimilate information, think
logically and solve problems.
4.
Exhibiting Personal Qualities: Individual responsibility Sociability
Self-management
Integrity
Each student will be individually responsible for completing assignments and the research
project. Each student will manage his/her time and resources to assure timely completion of
assignments and the term project. Each student will participate in group assignments with other
class members. Each student will practice integrity by exhibiting honesty in completing
assignments, tests and the term project.
5.
Managing Resources: Manage Time
Each student will manage time to complete assignments, the research project and written tests
within prescribed time limits.
6.
Exhibit Interpersonal Skills: Work on teams
Lead work teams
Work with different cultures
Each student will work on teams of varying cultural diversity to complete group assignments.
Each student will have the opportunity to lead work teams.
ATTENDANCE, SCHOLASTIC DISHONESTY AND OTHER POLICIES
Incomplete: The grade of “I” (incomplete) is conditional. A student receiving an “I” must
arrange with the instructor to complete the course work by the end of the following term
(excluding summer). After the deadline, the “I” becomes an “F”. All “I’s” must be
changed to grades prior to graduation.
Attendance: A student may be dropped from a course for excessive absences after the student
has accumulated absences in excess of 12.5% of the hours of instruction. In a traditional
16-week term, 12.5% of the hours of instruction equates to six hours of instruction or two
absences.
DROPPING: The State of Texas has begun to impose penalties on students who drop courses
excessively. For example, if you repeat the same course more than twice, you have to pay extra
tuition. In 2007, the Texas Legislature passed a law limiting students to no more than six total
course withdrawals throughout their academic career in obtaining a baccalaureate degree.
To help students avoid having to drop/withdraw from any class, HCC has instituted an Early
Alert process by which your instructor will "alert" you and HCCS Student Services of the
chance you might fail a class
because of excessive absences and/or poor academic
performance. You should visit an HCC counselor or HCC Online Student Services to learn about
what, if any, HCC interventions might be offered to assist you - tutoring, child care, financial aid,
job performance, etc, - to stay in class and improve your academic performance.
You MUST visit a counselor or online student services prior to withdrawing (dropping) the class
and this must be done prior to April 12, 2011, 4:30PM to receive a "W" on your transcript. After
that deadline, you will receive the grade you are making in the class which will more than likely
be an "F".
Weeks One - Three
Instructors initiate "Early Alert" process –to let students know they may be in
danger of failing the course and informing them of actions they need to take.
Weeks Four - Five
students.
Week Six
Week Eight
Students Services should send Instructors a report on actions taken or not by
Drop Deadline - for Mini-Spring 2011,April 12, 2011.
Grade Assignment
EVALUATION
QUIZ 1.............................................10% QUIZ 2.............................................10 %
QUIZ 3…………………………….10% QUIZ 4……………………………..10%
MIDTERM.......................................20% FINANCIAL ANALYSIS PROJECT……………20%
FINAL……………………………..20%
NUMERICAL GRADES RELATED TO LETTER GRADES
A
B
C
D
F
90 TO 100
80 TO 89
70 TO 79
60 TO 69
Below 60
Excellent
Good
Fair
Passing
Failing
Statement of Workplace and Foundation Competencies (SCANS Skills)
HCSS is determined to prepare you with the knowledge and skill you need to succeed in today’s
dynamic work environment. Towards this end, specific workplace competencies and foundation skills
have been designed into this course and into the curriculum for each program of study. Please see the
Scans Competencies And Foundation Matrix of this syllabus for information regarding the specific
common workplace competencies designed into this course and into the BNKG curriculum.
Students who require reasonable accommodations for disabilities are encouraged to report
to Room 102 SJAC, or call (713) 719-6164 to make
necessary arrangements. Faculty are only authorized to provide accommodations
requested by the Disability Support Services Office.
COURSE OUTLINE, BNKG 1356, ANALYZING FINANCIAL STATEMENTS
3-24
3-31
4-7
Topic
Assignment for next class
Course Introduction and Chapter 1
Read chapters 1 and 2, Answer
questions at end of chapter 1
Lecture / Discussion Chapters 1 and 2
Read chapter 3 and Answer Chapter
2 questions
Lecture / Discussion Chapter 3
QUIZ 1 (Chapters 1-2)
Review Chapter 3 and Answer
Chapter 3 questions
Lecture / Discussion Chapter 3
Read Chapter 4, practice common
sizing the Balance sheet and Income
statement
Lecture / Discussion Chapter 4
Read Chapter 5 and Answer Chapter
4 Questions
Lecture / Discussion Chapter 5
QUIZ 2 (Chapters 3-4)
Review Chapter 5 practice
calculating liquidity and leverage
ratios
Lecture / Discussion Chapter 5
Answer Chapter 5 Questions,
Review chapters 1-5 and end of
chapter questions for midterm.
4-14
MIDTERM EXAM. Chapters 1 through 5
4-21
Inc. Statement, Balance Sheet, and Ratios Read Chapter 6
Lecture / Discussion Chapter 6
4-28
5-7
Lecture / Discussion Chapter 7
Read Chapters 8 and Answer Chapter 7
QUIZ 3
Questions
(Chapter 6 and Inc. Statement, Balance Sheet, and Ratios)
Lecture / Discussion Cash
Flow/ Lecture / Discussion Chapter 8
Read Chapter 9 and Answer Chapter
8 Questions
Lecture / Discussion Chapter 9
QUIZ 4 (Chapters 7-8)
Answer Chapter 9 Questions
Review chapter 1-9 and end of
chapter questions
Review for Final Exam.
5-14
Read Chapter 7 and Answer Chapter
6 Questions
FINAL EXAM / Project Due