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THE UNIVERSITY OF TEXAS AT DALLAS

AIM 6201 Financial Accounting

Class Financial Accounting (Section 56a)

Hours: Monday/Wednesday 7:00 pm to 9:30 pm
Professor: Michael Tydlaska, MS, MBA, MA, CPA, CFE, FCPA
Email: tydlaska@utdallas.edu
Web page: webct.utdallas.edu
Location / Phone: (214) 860-8590
Office Hours: 6:30 pm to 7:00 pm Monday/Wednesday (In classroom)
Prerequisites: None

Course
Objectives: My objectives in this course are to help you understand financial reports and learn to use financial
statement information. Financial statements are the windows through which investors and external
parties view the performance and evaluate the financial health of a company. As managers, you
need to know how the results of your business decisions and activities are reflected in the financial
statements. You also need to know how financial statement information is interpreted by investors,
creditors and other external parties.

This is a basic course in financial accounting with two distinguishing features. First, we move at an
accelerated pace and second, we emphasize your role as managers using financial information.
Accounting is an action word and it is learned by doing.

Required Text
FINANCIAL ACCOUNTING, A BUSINESS PROCESS APPROACH, by Reimers

Grades
There will be two regular exams. Exams are timed at 2 hours. No make-up exams will be given. Medical
emergencies and family emergencies are the only valid reasons that will be accepted for missing an exam. You
must provide supporting documentation (e.g., signed note from a physician) if you do miss an exam. If you do not
have a valid reason for missing an exam, you will receive a zero on the exam, which usually implies failing the
course.

Exam 1 35% Chapters 1, 2, 3, 4 and 5

Exam 2 35% Chapters 6, 7, 8, 9 and 10
Team Project 15% Financial Statement Analysis (Chapter 11)
Homework 15%

l Homework problems will be assigned from the textbook. All homework must be submitted in class.
Homework must be submitted in a computerized format.
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TEAM PROJECT – ANALYSIS OF A PUBLICLY-TRADED COMPANY

DUE DATE IS JUNE 14, 2006

Review the most recent annual report of a publicly-traded company including the “Management
Discussion and Analysis”. Then, study the section containing the company’s consolidated
financial statements and the footnotes to the statements.

Notes:
1. Use “Analysis of Financial Information”, pp. 423-436 as a guide.
2. Annual reports (10Ks) may be obtained at
http://edgarscan.pwcglobal.com/servlets/edgarscan

You may use the Excel versions of the financial statements if they are available.

Questions:

1. For the most recent three years, compute ROA and ROE and other ratios described in exhibit
11-8, p. 426. You will have to use more than one annual report to get all of the numbers.

2. Also prepare common-sized income statements and balance sheets (vertical analysis) for the
most recent three years.

3. For the last five years, prepare longitudinal measures of change (horizontal analysis) for key
financial and non-financial items (at least 2 of each), i.e., items that you consider critical to
evaluating the performance of the company. These can be items such as sales, number of
stores, etc. Consider preparing graphs.

4. Comment on the information found in the cash flow statement, e.g., what are the primary
sources and uses of cash? How stable are the major sources of cash? What activities
consume the preponderance of the cash?

5. What is the company’s policy regarding revenue recognition? What inventory cost-flow
assumption is it using?

6. Comment on the business (economic), financial, operating and technological risk facing the
Company.

7. Based on your analysis, what comments can you provide regarding the Company’s past
performance and its future? What is the company’s strategic direction as reflected in its
operations, finances, sources of revenue, product mix, etc.?

8. Would you invest your personal or corporate assets in the company? Why or why not?
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Scholastic Dishonesty

The University has policies and discipline procedures regarding scholastic dishonesty. Detailed information is
available on the Scholastic Dishonesty web page. All students are expected to maintain a high level of responsibility
with respect to academic honesty. Students who violate University rules on scholastic dishonesty are subject to
disciplinary penalties, including the possibility of failure in the course and/or dismissal from the University. Since such
dishonesty harms the individual, all students and the integrity of the University, policies on scholastic dishonesty will
be strictly enforced.

Outline:

Week 1 – May 15 Chapters 1, 2 and part of 3

Week 2 – May 22 Chapters (complete 3), 4 and 5
Week 3 – May 29 Exam 1
Week 4 – June 5 Chapters 6 and 7
Week 5 – June 12 Chapters 8 and 9
Week 6 – June 19 Chapter 10 (Monday) and Exam 2 (Wednesday)

Homework:
Chapter 1 – Problem 1-3A, 1-6A, 1-7A
Chapter 2 – Problem 2-2A, 2-3A, 2-4A
Chapter 3 – Problem 3-1A, 3-4A, 3-7A and 3-8A
Chapter 4 – Problem 4-1A, 4-2A, 4-5A
Chapter 5 – Internet Exercise: Best Buy (Problems will be worked in the classroom)
Chapter 6 – Problem 6-2A, 6-4A, 6-7A and 6-11A
Chapter 7 – Problem 7-1A, 7-2A, 7-5A, 7-7A
Chapter 8 – Problem 8-2A, 8-6A, 8-7A and 8-8A
Chapter 9 – Problem 9-1A, 9-3A, 9-4A
Chapter 10 – Internet Exercise: Carnival Corporation (Problems will be worked in the classroom)
Chapter 11 – Problems will be worked in the classroom