Course Outline: Module 12
Financial Statement Analysis
ACC 201 Financial Accounting
The primary goal of this module is: help students use the information learned throughout the course to
analyze a company’s financial statements.
Module 12 – Financial Statement Analysis
Introduction
This module shows students how to use the information contained in the financial statements to analyze a
firm from the perspective of suppliers, employees, investors, creditors, and customers.
<insert clip art “financial statement analysis”>
Learning Objectives
After completing this module, students will be able to:
1. Explain how creditors, investors, and others use financial statements in their decisions.
2. Become familiar with the most important SEC filings.
3. Understand the difference between cross sectional and time series analysis.
4. Analyze financial statements using horizontal and vertical analysis.
5. Calculate and use financial statement ratios to evaluate a company.
Due This Week
Assignment
Format
Grading
Interactive Lecture and Quiz
PowerPoint presentation
5 points
Lesson 1 Homework
CengageNow
5 points
Interactive Lecture and Quiz
PowerPoint presentation
5 points
Lesson 2 Homework
CengageNow
5 points
PowerPoint presentation
5 points
Lesson 1 – Using Financial Statements in
Decision Making
Lesson 2 – Cross Sectional, Time Series,
Horizontal and Vertical Analysis
Lesson 3 – Ratio Analysis
Interactive Lecture and Quiz
©2012 Gateway Community College
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Lesson 3 Homework
CengageNow
5 points
Exam 4
BlackBoard
100 points
*Use this table to fill out the course calendar. Be sure to add dates in the course calendar.
Learning Activities
The learning activities section is a way for you to sequence your students learning. Consider this as
your way of guiding them to understanding and scaffolding their learning. Be creative, use the right
tool for the right objectives and whenever possible integrate knowledge checks with feedback and/or
reflection. Be sure to provide an overview of each activity in the sequence and how it will help the
learner achieve the learning objectives. Add learning activities as necessary.
Lesson 1 – Using Financial Statements in Decision Making
This lesson tells who uses financial statements in decision making and how to do so.
Reading
Read pages 586 - 590 in your textbook, Cornerstones of Financial Accounting.
This reading will discusses the stakeholders in a business who use financial statements in decision
making and what information is required by the Securities and Exchange Commission to facilitate such
decision making.
Interactive Lecture
Using Financial Statements in Decision Making
In this narrated PowerPoint lecture you will learn who uses financial statements to make decisions and
what information the SEC requires publicly traded companies to provide for these stakeholders to
facilitate their decision making.
Activity
Assignment Name
CengageNow Homework
Graded Assignment
YES
<insert CengageNow link here>
Points Possible
5 pts
www.cengagebrain.com
Lesson 1 Homework Problems from CengageNow
After completing the reading and the interactive lecture, proceed to CengageNow to complete Module 12,
Lesson 1, “Using Financial Statements in Decision Making”.
Grading and Feedback
You can expect this assignment to be graded in CengageNow immediately after your submission.
Lesson 2 – Cross Sectional, Time Series, Horizontal and Vertical Analysis
©2012 Gateway Community College
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This lesson shows four different ways to analyze financial statements – cross sectional analysis, time
series analysis, horizontal analysis, and vertical analysis.
Reading
Read pages 590 - 597 in your textbook, Cornerstones of Financial Accounting.
This reading will show you the financial statements for Aeropostale and show you how to use these
statements to analyze the company.
Interactive Lecture
Cross Sectional, Time Series, Horizontal and Vertical Analysis
In this narrated PowerPoint lecture you will learn to define four types of financial statement analysis and
then use actual financial statements to use these methods.
Activity
Assignment Name
CengageNow Homework
Graded Assignment
YES
<insert CengageNow link here>
Points Possible
5 pts
www.cengagebrain.com
Lesson 2 Homework Problems from CengageNow
After completing the reading and interactive lecture, proceed to CengageNow to complete Module 12,
Lesson 2, “Cross Sectional, Time Series, Horizontal and Vertical Analysis”.
Grading and Feedback
You can expect this assignment to be graded immediately in CengageNow after your submission.
Lesson 3 – Ratio Analysis
This lesson shows twenty four different ratios that can be used to analyze financial statements. They are
divided into six categories – short-term liquidity ratios, debt management ratios, asset efficiency ratios,
profitability ratios, stockholder ratios and Dupont analysis.
Reading
Read pages 597 - 619 in your textbook, Cornerstones of Financial Accounting.
This reading will show you how to calculate each of the ratios using dat
Interactive Lecture
Cross Sectional, Time Series, Horizontal and Vertical Analysis
In this narrated PowerPoint lecture you will learn to define four types of financial statement analysis and
then use actual financial statements to use these methods.
©2012 Gateway Community College
4
Activity
Assignment Name
CengageNow Homework
Graded Assignment
YES
<insert CengageNow link here>
Points Possible
5 pts
www.cengagebrain.com
Lesson 2 Homework Problems from CengageNow
After completing the reading and interactive lecture, proceed to CengageNow to complete Module 12,
Lesson 2, “Cross Sectional, Time Series, Horizontal and Vertical Analysis”.
Grading and Feedback
You can expect this assignment to be graded immediately in CengageNow after your submission.
©2012 Gateway Community College
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