OVERVIEW 1: Analysis Framework and Review Accounting model

Overview 

In the first week, we will discuss the framework for the financial statement analysis and will review the accounting model and key accounting relationships. Most weeks we will cover two chapters in the text. I am not covering everything, so I have provided detailed guidelines to focus your weekly study. Check out the "Weekly roadmap" below.

In addition to reading and watching the suggested videos and guided examples, please attempt the myBusinessCourse homework for Modules 1 and 2 before class on Wednesday. If you have questions about the homework, we can examine this during Wednesday's Live Session.

Download the Download myBusinessCourse Student Handout

for instructions on how to access myBusinessCourse.

 

Module Objectives

In this module, the activities, content, and assignments will guide your learning so you can:

  • Source the annual report and financial statements for your chosen company and one of its competitors
  • Assess your chosen company's business environment using either Porter's five forces or a SWOT analysis
  • Calculate the ROE and ROA to determine which company appears to be stronger
  • Analyze your chosen company's balance sheet, income statement and cash flow

 

Module To-Do List

Here's everything you need to do and remember for the week:

Reading & Homework

  1. Read text Module 1. Much of this is a review so you may skim pages 1-1 to 1-18. Be sure to read Appendix 1A.
  2. Watch Module 1 eLectures: 4-6 in MBC. Note that eLectures correspond to specific pages in the text. eLectures 1-3 are optional. You will note that in some cases the eLectures ask you to keep a page open in the text while you are listening to the eLecture. If you are using an eBook you may want to print selected figures so you can reference them while listening to the eLecture, or keep a copy of the book open on a second screen or device to assist you as you listen to the eLecture.
  3. Work through Module 1 Guided Examples: 1-3, 1-4, 1-5. See review templates. Review 1-3, 1-4, and 1-5 so you can work along with the examples.
  4. Work Module 1 Homework in MyBusinessCourse (MBC). 
  5. Read text Module 2: This is also a review material. Skim pp. 2-2 to 2-18. You do not need to read Appendix 2A.
  6. Watch eLectures 5, 6, 7, 8, and 10 (Part 1) in Module 2. eLectures 1-4 and 9 are optional.
  7. Work through Module 2 Guided Examples 5, 6, 7, 8, and 10. See review templates. Review 2-5, 2-6, 2-7, and 2-8 so you can follow along with the examples.
  8. Complete Module 2 MBC homework (first pass). 

Participation: Live Session

  1. Submit a question that you would like to see me cover in class. In some cases, if questions are similar, I will combine questions to cover an issue.
  2. Read CAP Stage 1, and see if your team can select a company you would like to analyze this term prior to the first class. Send me a message with your desired selection. I will confirm that it has not been selected and meets the desired characteristics. I would like each team to select a unique company. Note the desired characteristics for your company on the CAP Stage 1 assignment. Please let me know if you don’t think you can work on this as a team as soon as possible. In this case, you may choose a company and do the analysis on your own.