UNIVERSITY OF SOUTHERN CALIFORNIA
MARSHALL SCHOOL OF BUSINESS
SYLLABUS
FBE442-Intermediate Financial Accounting for Non-Accounting Majors
Semester:
Time:
Instructor:
Office:
Office Hours:
Phone:
Fax:
E-mail:
Fall 2000
Wed. 6:00-10:00Pm
Susanna P. Y. Jue
Hoffman Hall 601L
By appointment only- Th 6:00-8:00pm
213-740- 6520(USC office)
310-566-4381(work)
310-453-1187(work)
sjue@sjaccounting.com
Office Hours:
If you need to have an office meeting with me, please make an appointment with me at least three days in
advance. You can reach me at (310) 310-566-4381
Course Objectives:
This course prepares you to understand and analyze financial statements as a user (e.g. financial
analyst) instead of as a preparer. In order to analyze financial statements effectively, you must
know accounting concepts and understand how financial statements are prepared. The financial
data that we study from the textbook will help you to develop a better understanding of financial
accounting concepts, rules and relationship. The first few chapters of the textbook (chapter 1-4)
serve as an introduction to the essential elements of financial statement analysis. Most of
information from these chapters may have been covered in your earlier accounting and finance
classes. A review of these accounting concepts and financial ratios in these earlier chapters is
essential in preparing you to analyze financial statements data. From chapter 6 on, each chapter
will relate to certain specific balance sheet items that most financial users ought to pay attention
to. Examples in textbook and cases study with actual company data will help you understand
how financial statement information is used as input for economic decision-making. In order to
understand financial statement information that applies in practice, we will also cover Generally
Accepted Accounting Principles (GAAP) that relate to each chapter.
Required Preparation and Materials:
1. Text: White, Sondhi, and Fried, The Analysis and Use of Financial Statements, Second Edition,
Wiley, 1998.
2. Selected cases from Harvard Business School and articles from Wall Street Journal (will be included
in course package).
3. The Wall Street Journal.
4. Software: You must be familiar with EXCEL or LOTUS 1-2-3 and word processing software. If you
do not yet know how to use EXCEL or LOTUS and word processing software, learn quickly. Keck
Center holds free Excel workshops regularly.
Optional Materials:
Barrons, Business Week, Fortune, or Forbes.
Calculator: Since we will compare financial data throughout the semester, you should bring calculator
with you to class.
Recommended out of class reading for class discussion:
Wall Street Journal
Expectations:
You must know accounting and fulfill all prerequisites before you are taking this class. You should read
the assigned chapter prior to class, and completed assigned cases by the due days. All assigned cases
must be typed and be legible. Class participation pertains to assigned chapter is encouraged. Keep
yourself informed of the current events regarding financial matters often appear in the financial press
such as the Wall Street Journal. I encourage you to bring in articles from Wall Street Journal or business
magazine that relate to subjects that you will be studying during the semester.
The class outline will serve as a guide of what is in the chapters. You should take notes during class.
Midterms and final will not be limited only to class outline.
You are responsible for any absence from class. If you miss a class session, get notes and materials from
your fellow group members. Form a “buddy system.” Arrange for pickup of extra handouts. I will not
take responsibility for your absences, nor will I keep extra handouts in my office.
Evaluations:
Grading will be based on:
Class participation
Cases study, project & quizzes
Midterm Exam (2)
Final Exam
TOTAL
10%
20%
40%
30%
100%
1. Tests:
All tests will consist of problem, essay and /or objective questions (such as true/false and multiple
choice questions).
The final will be comprehensive. All tests will be closed book. You may use a financial calculator in
the test; however, you may not put any course-related material on your calculator.
You are required to take all tests administered in this course. ALL TESTS MAY NOT BE MADE
UP. If you are unable to take a test, you must obtain my written permission for missing the exam
prior to the exam (Detailed requirements are included in Section of Missed Exam Policy under
Course Policies). Missed exams are recorded as a zero.
2. Project:
More information regarding the project will be discussed and handed out in class.
3. Homework:
Homework consists of assigned cases. These assigned cases may or not be graded but must be
handed in on time. I will let you know which one will be graded.
You should practice the problems follow each chapter. Homework on these chapter problems will
not be collected or graded. I will provide you the answers for these problems and you should
compare the answers to the problems on your own. We may select some of these chapter problems
or cases to cover in class.
4. Class Participation:
Class participation is strongly encouraged. Demonstration of knowledge of course material through
positive verbal participation in class discussions and attendance to classes can be a significant factor
in assigning final grades to students in borderline cases.
5. Extra-Credit Assignments:
In fairness to all other students, there will be no extra-credit assignments. Requests for extra-credit
assignments to make up for a poor performance on a test will not be granted.
6. Grading Policy:
The historical average grade point is 3.0. The current course grade average will be approximated
between 2.9 to 3.0.
Course Policies:
Requests for incomplete grades, action for academic dishonesty, and other administrative actions will be
handled according to the policies established by the University and the Marshall School of Business
(MSB).
1. Incomplete Policy:
Do not ask for a grade of incomplete for the course simply because you are doing poorly in the class.
The University and the MSB have established clear-cut and highly restrictive limitations on when the
grade of incomplete can be granted, and what the contractual obligations of the parties may entail.
Note that an incomplete can only be granted after 12th week.
2. Academic Dishonesty:
“The use of unauthorized material, communication with fellow students during an examination,
attempting to benefit from the work of another student, and similar behavior that defeats the intent of
an examination, or other class work is unacceptable to the University. It is often difficult to
distinguish between a culpable act and inadvertent behavior resulting from the nervous tensions
accompanying examinations. Where a clear violation has occurred, however, the instructor may
disqualify the student’s work as unacceptable and assign a failing mark on the paper.” (SCampus)
3. Exam Policy:

All exams are closed book and closed notes.

You are required to follow all instructions given on the cover sheet of each test. Failure to do so
may result in not receiving credit for correct answers.

It is your responsibility to check your test to ensure that no pages are omitted. The cover sheet to
each test will explain how many pages there are to the test, how many questions are included in
the test, and how many points are assigned to each question.

You are responsible to check the number and sequence of the pages of each test. If your test is
missing a page, ask the instructor or TAs for a new test. Requests for re-grades because pages
are claimed to have been missing from a test will not be honored. Your name should appear on
each pages of the test. Exam paper without name may not receive any grade.

If you have any questions during a test, raise your hand and ask the instructor your question. No
discussion with other class members will be allowed during a test.

You may be asked to change seats during a test. This does not necessarily mean that you are
suspected of cheating.

You may be asked to show proper identification before, during, or after a test. You are required
to bring your university student picture identification to each test.

No hats or sunglasses may be worn during a test.

No partial credit will be awarded for objective questions.

The tests will be handed back within two class periods following the test. Any questions
regarding grading of a test must be brought to the attention of the instructor no later than the
following scheduled class after the test is handed back. There will be no exceptions. Requests
for a reread of a question must be made in writing, and returned with the test.

If you allege you have taken an exam (or quiz) but have not received a grade, it is your
responsibility to inform the instructor of this problem in writing within two class periods after
the grades are distributed and posted. Any student not following this procedure will receive a
zero for the test.

Requests for grade changes for such reason, as “I am only 1 point from a B” will not be
considered.

If you change your answer on the scantron sheet, it is your responsibility to properly erase any
other answers you had previously selected. Scantron sheets that are misgraded because of poor
erasure marks will not be re-graded.

All grade-inquiry requests must be made in writing within 1 class period after the grades are
posted. Your typed-written memo should contain the following information. Be sure to include
your 442 ID. (To expedite filing and recording, everyone will be assigned a 442 ID number in
the 3rd class meeting. Please have this 442ID number on every assignment and test.)
To:
Date:
Section:
From:
Re:
Professor Jue
Nov. 25, 2000
Wed. 6:00-10:00
Jordan, Michael (100) [Last, First Name (442ID)]
Midterm 1’s grade
Your message (such as your expected outcome of this request).
4. Missed Exam Policy:
There will be no make-up exams for all the tests. Students who miss any test will receive the grade
of “zero” for that particular test.
A missed midterm exam will receive a grade of zero unless the student does the following: (1) a
student gives notice to the professor prior to the exam that he or she will be missing an exam, and
(2) a legitimate and verified excuse (such as non-elective surgery with written documentation from a
certified physician; USC-University Park Health Center will no longer be providing routine medical
excuses) is presented to the professor within one week after the exam was administered.
If a student does not have a written, acceptable (a common cold is not acceptable), verified excuse
for missing either of the midterm exams, or does not give prior notice even with a valid excuse, the
student will receive a grade of zero for the missed exam.
If a student has a written, acceptable, verified excuse for missing any one of the midterm exams and
has given proper prior notice of the excuse, his or her final exam work will count for (40%) of the
course grade.
Students who miss both midterm exams will automatically receive the grade of “F” for the course if
they have not withdrawn from the course.
How can you do well in this course?
This course requires your strong knowledge in accounting and finance. If you have difficulties in
understanding certain topics discuss in the textbook, you are strongly recommended to refer to your
previous accounting books or obtain extra reading materials from library. The followings suggestions
should also help you to improve in this course:
1. Attend all classes and read before you come to the class meetings.
2. Focus your attention on the lecture and participate as much as you can in the class discussions
positively. (I suggest that you do not sit next to your best friends since they can greatly distract
you. I also strongly recommend that you do not chat with your neighbor classmates during class
meetings. No food or drink will be allowed in class. Beepers and cell phones must be turned off
during class meetings.)
3. Ask as many questions as you would like in class; this will help your classmates too.
4. Understand the materials. This includes understanding the lecture, the case study, chapter
problems and its solution, and the text.
5. Work on the homework problems regularly and practice the chapter problems regularly.
6. Keep abreast of the current events by reading (at least the cover pages of) the Wall Street
Journal.
7. Whenever possible, apply what you have learned to your daily financial life.
Finally, I cannot stress enough that it is very critical for you to keep up with the readings, attend classes
and solve problems on a regular basis.
TENTATIVE COURSE OUTLINE AND ASSIGNED READINGS AND HOMEWORK
Date
8-30
Ch
1
Topic
Framework for Financial Statement Analysis
Cases
9-6
2
Accounting Income and Assets: The Accrual
Concept
9-13
3
Analysis of Cash Flow
Accounting for
Frequent Fliers
Circuit City Stores,
Inc.(A)
Thousand Trails, Inc
(case 3-1)
9-20
4
Foundations of Ratio and Financial Analysis
9-27
General Mills, Inc.:
Analyzing an
Annual Report
Midterm exam 1
9-27
10-4
6
6
Analysis of Inventories
Analysis of Inventories
10-11
7
10-18
8
Analysis of Long-lived Assets, Part 1: The
capitalization Decision
Analysis of Long-lived Assets, PartII: Analysis of
Depreciation and Impairment
10-25
11-1
11-8
9
10
Analysis of Income taxes
Analysis of Financing Liabilities
Midterm exam II
11-8 /1115
11
Leases and Off-Balance-Sheet debt
Texaco and Caltex
(case11-1)
11-15/1122
13
Analysis of Intercorporate Investments
Coco Cola(case 131)
11-29
14
Business Combination
12-6
12-13
17
Analysis of Financial statements: A Synthesis
Final exam 7:00-9:00pm
Homework assignments are due on the next class
meeting
Nucor (case6-1)
Digital
equipment(case7-1)
Swedish Forest
Products
Industries(case8-1)
Intangible Assests
(case9-1)
Georgia PacificCNN ( case 14-1)
Reading Articles
Chapter
Articles from Wall Street Journal
1
WSJ, 5-27-98, “Ernst & Young Quits as Outside Auditor…”
2
WSJ, 1-28-98 “Citicorp Net: Special Items…”
WSJ, 5-1-97, “Sipping the Fizz in Coca-Cola’s profit”
WSJ, 9-30-97, “FASB Rule will Offer Walk…”
WSJ, 7-18-97, “Microsoft’s Earnings Hot…”
WSJ, 9-16-97, “ Growth Companies Feel…”
7
WSJ, 1-30-96, “Odd Number: Are Companies…”
WSJ,12-30-96, “Write-Offs May Become ‘Write on’”
11
WSJ, 2-12-98, “Compaq Deal May…”
12
WSJ, 1-14-97, “As Options Proliferate…”
WSJ, 5-22-97, “More Firms Use Options to Gamble on Their Own Stock”
WSJ, 6-26-97, “Coming Clean on Company Stock Options”
WSJ, 12-4-97, “Microsoft and Its Two Constituencies…”
WSJ, 2-1-96, “How Pension Funds Lost in Market Boom”
13
WSJ, 5-13-96, “ADM Originally Set…”
14
WSJ, 12-2-96, “More Firms Write Off Acquisition Costs”
WSJ, 10-8-97, “WorldCom Wants Pooling for MCI Deal”
WSJ, 4-27-98, “FASB May Change M&A Accounting…”
Disclosures
WSJ, 3-31-98, “Sudden Departure of …”
WSJ, 6-21-96, “Shut Out…”
WSJ, 3-6-97, “Trading Picks Up During…”
Earnings
Management
WSJ, 4-3-97, “ How to be a Winner in the Profits Game”
WSJ, 11-4-96, “Sears’s Credit-Card Reserves…”
WSJ, 4-21-98, “IBM Posts 13% Drop in First-quarter Net”