Accounting 310
Accounting Information for Decision Makers
Winter 2012
Professor: Daniel Ryan
Phone: 323-343-2830
Office ST 504
E-Mail Address: dryan@calstatela.edu Web Page: http://instructional1.calstatela.edu/dryan
Office Hours: Tu 4:40PM – 6:00PM
Final Exam: Tuesday, March 20, 2012 7:30pm – 10:00pm;
Required: Yavari, Hansen, and Otto, Accounting Information for Decision Making, 2011, Great
River Technologies, # 9781615492633
Prerequisites: Acct 210 and Acct 211 or equivalent introductory financial and managerial
accounting classes.
Course Description: Use of financial and managerial accounting information to plan, analyze,
evaluate, and improve the activities and financial results of a firm.
Course Objectives: At the end of the course, students should be able to use accounting information to
assess the efficiency and effectiveness of operations and cash flow of an entity and use that information
to make better managerial decisions. Students also should be able to use trend data and financial
statement information to project future operations and financial statements. Finally, students should be
able to assess the internal control and corporate governance of a firm.
Grading:
Homework
Two Case Studies
Annual Report Project
Presentation
Internal Control Report
Midterm
Final exam
20%
10%
15%*
10%
05%
20%
20%
* The professor reserves the right to adjust the score on an individual student’s annual report project
grade based on the results of the peer evaluation score. This means that if your group members gave
you low scores on the peer evaluation, the professor may deduct points on the annual report project
grade.
Key Dates: January 17 Last day to drop the class without penalty. Withdrawals after this date are permitted only for
Serious and Compelling reasons and require the instructor’s and department chair’s signatures and documentation as to
why you are dropping the class. January 23 Last day to add the class.
Holiday – None
If you think you are eligible under the ADA for accommodation, please contract the office for students with disability at 323343-3140, located in the student affairs building, Room 115
Week
1
2
3
4
5
6
7
8
9
10
Reading and assignments
Review of accounting cycle – Christy’s Lemonade Stand
Journal entries, adjusting entries, posting, trial balance, income statement, statement of
retained earnings, balance sheet
Review of the Income Statement and Balance Sheet
Readings: Chapters 1 and 2
Statement of Cash Flows; DuPont Formulas – ROSE
Homework: Review Problem due
Review the accounting cycle, Review the categories of ratios, comparability
Profit Margin Analysis: Common sizing and trend analysis – where costs are “out of line”
Ways to improve revenue, revenue variations
Revenue recognition rules, how to increase revenue and analysis
Readings: Chapters 3 and 4
Homework: Horizontal and Vertical analysis of Balance Sheet and Income Statement
for Target
Homework: Profitability ratios for Target
Cost structure, cost behaviors, and cost analysis
Costs/expenses – direct costs and indirect costs, variable and fixed costs
Standard costing method/ABC costing method
Review income statement – revenues, sales, COGS, expenses, profit
Gross margin, contribution margin
Operating leverage – capital intensive, labor intensive
Readings: Chapters 5 and 6
In Class Case: ABC Case
Homework: ABC Costing Problem
Homework: Operating Leverage Problem
Homework: Effectiveness ratios, Internal Control
Time Value of Money, Capital Budgeting
Readings: Chapters 15, 7, 8, 9
Homework: Capital Budgeting Problem
Homework: Effectiveness Ratios
Types of financing available, Financial Data research
Solvency ratios, Financing choices and use of financial leverage
Readings: Chapters 10 and 11
Homework: Solvency Ratios for Target
Financial leverage and solvency
Cash flows and liquidity Midterm 2/14
Readings: Chapters 12
Homework: Liquidity Ratios due Target
Financial statement projection
Income statement and balance sheet
Comprehensive financial analysis
Readings: Chapters 13 and 14
Internal Control Report Due
Projecting cash flows
Earnings management and fraud
Homework: Forecasting Case Due
Readings: Chapter 16
Corporate Governance and Sarbanes Oxley Act
Readings: Chapter 17
Annual Report Project Presentations
Annual Report Project Presentations
Peer Evaluations due
Annual Report Paper due