Fort Hays State University
College of Business and Entrepreneurship
Course Syllabus
Spring/2014
Tue. Thu. 9:00 – 10:15 AM – DH204
Instructor Name: Glenn Growe, Ph.D.
Office Room Number: 209A McCartney Hall
Phone Number: (785) 628-5682
E-mail: gagrowe@fhsu.edu
Office Hours: M - F -- 1:30 PM to 3:30 PM
ACCT 203 and ACCT 204
This course provides a comprehensive study of the use of financial statements in assessing a firm's health and financial standing.
Easton, P., McAnally, M.L., Sommers, G.A. and Zhang, X-J. (2013) Financial
Statement Analysis & Valuation. Third Edition. Cambridge Business Publishers.
Engel, E., Hirst, D., and McAnally, M.L. (2012) Cases in Financial Reporting.
Cambridge Business Publishers.
Additional materials will be handed out in class and posted on Blackboard.
Objective
Demonstrate understanding of the functional areas of business: accounting, finance, management and marketing.
Demonstrate the ability to communicate effectively in written form.
How Objective will be Evaluated
Assignments, a course project, and a final exam will assess students’ knowledge of the discipline of Accounting. An understanding of certain aspects of finance and management will also be assessed.
Students will create a written report for their course project.

Objective
Demonstrate the ability to communicate effectively in oral form.
Demonstrate the use of appropriate analytical tools in decision making and problem solving.
Demonstrate an understanding of teamwork, team contributions and team development within organizations.
Demonstrate an understanding of the nature of leadership, key leadership traits and behaviors, and different approaches to successful leadership within organizations.
Demonstrate an understanding of global business issues.
How Objective will be Evaluated
Students will present their final project to the rest of the class as part of small group teams.
Assignments, the course project, the final exam, and class discussions will assess students’ ability to analyze and make an appropriate decision regarding an investment decision.
Students will function within a team for the final project and will submit a performance evaluation for each member of their team on the last day of class.
Not Covered
Assignments, the final exam, and the course project will assess students’ awareness of global business issues related to accounting and successful business strategies.
Not Covered Demonstrate an understanding of current information technology.
Demonstrate an understanding of the legal environment and of social responsibility and ethical issues facing businesses today.
Discussion will assess students’ ability to analyze ethical issues and alternative courses of action.
The course project will assess students’ understanding of ethical and socially responsible corporate governance practices.
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This course will examine the role of financial statement analysis in the evaluation of the firm and the prediction of its future condition. In particular, it will cover the various steps of doing a valuation, including strategy analysis, financial ratio analysis, quality of earnings analysis, preparation of pro forma financial statements, and various valuation models. These fundamental analysis topics will be related to applications for the credit and equity markets. The course will attempt to provide:
 Exposure to public sources of financial information used by capital market participants and thus, how to obtain the relevant information for valuing equities
Skills to critically analyze financial statements
Skills to predict the future economic condition of the firm

 Practice applying financial statement analysis in specific decision contexts such as corporate valuation, financial distress evaluation, and predicting accounting misstatements.
 An understanding of how to compare and adjust for the accounting methods used
The course is applied in nature and stresses the use of actual financial statements.
This course is offered on-campus in a traditional face-to-face environment. Additional materials are offered on Blackboard. Teaching methods used in the delivery of course content may include lecture, demonstration, class discussion, case analysis, and a project.
Students are expected to participate in class, complete assignments, and, as part of a group, present the results of a group project.
The course grade will be based on the following four components: a. Two exams during the semester: (200 points total): These will include multiple choice questions and problems involving calculations. Questions and problems may come from either the assigned texts or posted lecture notes (Powerpoints). b. A final exam (120 points): This will cover indicated chapters, cases, lecture notes and a financial ratio analysis of two companies whose financial statements we will be examining throughout the semester. One of these companies will be a banking institution. c. Homework (40 points): Homework assignments will be various end-ofchapter problems. d. Cases (40 points): Cases from Engel, Hirst, and McAnally’s “Cases in
Financial Reporting
” will be assigned on a group basis. A brief writeup of the assigned case questions and their presentation in class is expected.
Scale:
90% - 100% A
80% - 89% B
(superior)
(good)
70% - 79% C
60% - 69% D
59% or less U
(average)
(minimum passing)
(unsatisfactory)

Communication: Communication for this course will take place in the classroom itself, through Announcements in Blackboard, and via e-mail. All e-mail for this course will be sent to the student’s FHSU email account unless the student changes the e-mail address in Blackboard. Students MUST know how to use their FHSU e-mail accounts. If a student wishes to have their mail forwarded to another account it is the student’s responsibility to obtain the proper procedures from the CTC HelpDesk in Tomanek Hall.
Also, it is the student’s responsibility to learn how to send/receive email using the FHSU email account by contacting the CTC HelpDesk.
Class Preparation: Students are expected to read the assignments and to prepare for class. If you do not adequately prepare for class, you will have trouble following the discussion, especially later in the semester.
Laptop Computers and iPads: Unless we need computers for in-class discussions of the assignments (e.g. when discussing the final project), I ask you to refrain from using laptop computers or iPads during class.
Surfing the web and checking Facebook or email during class are a distraction to you, me and fellow students.
Syllabus is Subject to Change: Please note that this syllabus is preliminary and that the timing of topics and the reading assignments are subject to change. Changes are made at my discretion but intended to optimize the quality and flow of the content.
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Academic Honesty : http://web.fhsu.edu/universitycatalog/gen/academichonesty.asp
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Attendance : http://web.fhsu.edu/universitycatalog/gen/classattendance.asp
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Withdrawal : http://web.fhsu.edu/universitycatalog/gen/withdrawalpolicystatement.asp
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Notice of Accessibility and Services for Students with Disabilities :
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If you have a disability that may have an impact on your ability to carry out assigned course work and if you wish to seek any accommodations for this course, you must contact Services for Students with Disabilities (SSD). SSD is located in the Kelly
Center, Picken Hall, Room 111, 785-628-4401. SSD will review your documentation and determine, with you, what academic accommodations are necessary and appropriate for you that can be accommodated in this course. All information and documentation of your disability is confidential and will not be released by SSD without your written permission.
 http://www.fhsu.edu/disability/get-access/
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Career Services : http://www.fhsu.edu/career/
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Kelly Center : http://www.fhsu.edu/kellycenter/asp/Academic-Help/
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Writing Center : http://www.fhsu.edu/english/Writing-Center/

8
9
10
11
12
13
14
15
16
Week
1
2
5
6
4
3
7
Date
21-Jan
23-Jan
In Class
Course Syllabus & Introduction
Chapter 1 – Framework for Analysis and Valuation
28-Jan
30-Jan
4-Feb
6-Feb
Chapter 2 – Overview of Business Activities and Financial Statements
Chapter 2 – Overview of Business Activities and Financial Statements
Chapter 3
Chapter 3
– Profitability Analysis and Interpretation
– Profitability Analysis and Interpretation
11-Feb Chapter 4 – Credit Risk Analysis and Interpretation
13-Feb Chapter 4 – Credit Risk Analysis and Interpretation
18-Feb Chapter 5 – Revenue Recognition and Operating Income
20-Feb Chapter 5 -- Revenue Recognition and Operating Income
25-Feb ***Exam #1 (Chapters 1- 5)***
27-Feb Chapter 6 -- Asset Recognition and Operating Assets
Homework and
Cases Due
General Mills,
Rocky Mtn.
CH1
Weis Markets
(p.19), Apple
CH 2
Molson Coors,
Weis Markets (p.68)
CH 3
Pearson plc,
Callaway Golf
CH 4
4-Mar
6-Mar
Chapter 6 -- Asset Recognition and Operating Assets
Chapter 7 – Liability Recognition and Nonowner Financing
11-Mar Chapter 7 – Liability Recognition and Nonowner Financing
13-Mar Chapter 8 – Equity Recognition and Owner Financing
18-Mar Spring
20-Mar Break
25-Mar
27-Mar
1-Apr
3-Apr
8-Apr
10-Apr
15-Apr
17-Apr
22-Apr
24-Apr
29-Apr
1-May
6-May
8-May
Chapter 8
Chapter 9
– Equity Recognition and Owner Financing
– Intercorporate Entities
Chapter 9 – Intercorporate Entities
Chapter 10 – Off-Balance Sheet Financing
Chapter 10 – Off-Balance Sheet Financing
***Exam # 2 (Chapters 6 - 10)***
Chapter 11 – Forecasting Financial Statements
Chapter 12 – Cost of Capital and Valuation Basics
Chapter 13 – Cash-Flow-Based Valuation
Chapter 13 – Cash-Flow-Based Valuation
Chapter 14 – Operating Income-Based Valuation
Chapter 14 – Operating Income-Based Valuation
Chapter 15 – Market–Based Valuation
Chapter 15 – Market–Based Valuation
CH 5
Caterpillar,
Palfinger AG
CH 6
Borland Software,
Abbott Labs
CH 7
Volvo,
WorldCom
CH 8
State St.,
BP p.l.c.
CH 9
J and J,
Intl. Speedway
Rite Aid,
Build-A-Bear
CH 10
Merck,
Kohl’s
CH 12
Nordstrom (p.266),
Nordstrom (p. 274)
CH 13
CH 14

Finals
5/15/2014
(9:00-
10:40)
Final Exam (Chapters 11-15 and company ratio analyses)