Trident Bus500 full class( case+slp+ discussion) october 2019

BUS500 Financial Intelligence

Module 1 - Background

FINANCIAL INTELLIGENCE

Modular Learning Objectives

Keep the following objectives in mind as you work through the material in this module:

• Define and recognize the role of economics.
• Define and recognize the role of accounting.
• Define and recognize the role of finance.
• Understand the relationship among the above disciplines.
• Recognize and apply financial information in a business setting.
• Recognize and apply financial information from a personal perspective.

Required Material

Let us start with a few basic videos introducing economics, accounting, and finance. The videos are commercial in nature, but more succinct than academic explanations, so this is an easy introduction to our topic.

Plain Prep. (2013, February 23). What is Economics? [Video file]. Retrieved from https://www.youtube.com/watch?v=nWPrMmv1Tis

 

Rivers, N. (2011, September 23). What is Accounting? [Video file]. Retrieved from https://www.youtube.com/watch?v=-VQ8nh60xPA

 

Menteonlearning. (2012, May 10). What is Finance? [Video file]. Retrieved from https://www.youtube.com/watch?v=mfQFIAUzI1Q

 

Financial intelligence has multiple meanings, but the brief videos below relates to topics in this course.

Learnaccountingfast. (2012, January 9). Financial Intelligence is critical “Robert Kiyosaki” [Video file] Retrieved from https://www.youtube.com/watch?v=JQMToeKIITk

 

NotePirate. (2013, Dec.8). What is Financial Accounting? (Financial Accounting Tutorial #1). [Video] Retrieved from https://www.youtube.com/watch?v=QiQDWHpLw0k&list=PL_PmoCeUoNMIX3zP2yYSAq8gi6irBVh-1

 

Accounting is the language of business and the financial statements categorize financial data for users, so we can learn to read, interpret, and analyze the information. Which are the main financial statements? Look for the section about the four core financial statements and watch the associated video at the link below.

Walther, L. (2017). Principles of accounting. The four core financial statements. Retrieved from http://www.principlesofaccounting.com/chapter-1/financial-statements/

Walther, L. (2010, March 6). The four core financial statements [Video file]. Retrieved from https://youtu.be/7BAcIA5qpEM

Optional Reading

Accounting Coach. (n.d.). Dictionary of Accounting Terms. Retrieved from http://www.accountingcoach.com/terms

Walther, L. M. (2017). Principles of accounting: A complete online text. Retrieved from http://www.principlesofaccounting.com/ . Note that there are also many useful videos associated with Dr. Walther's textbook.

 

 

 

Discussion: Financial Information

 Previous Next 

All public entities must disclose annual (and quarterly) financial results to the public.

• What type of information can financial data convey?
• What type of information can financial data not convey?

Comment on both questions above. Do research on the Internet and show references for the information. Comments should be in your own words. Do not forget to interact with other participants by following up with additional ideas or examples.

 

 

 

 

 

Module 1 - Case

FINANCIAL INTELLIGENCE

Case Assignment

The main question of this case is: Why does financial intelligence matter and what does it mean?

Use the background material and do additional research as needed. Write an essay to address the following questions.

• What are the benefits from some rudimentary knowledge in these areas?
• How can the understanding of the type of information be helpful if you are not working in finance, accounting, or economics? 
• List ten potential uses of this knowledge in your professional career and a planned career/endeavor.
• What does financial intelligence mean to you?
• What is financial statement analysis?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

 

 

 

 

Module 1 - SLP

FINANCIAL INTELLIGENCE

In an effort to create your own definition of financial intelligence, review background information and perform research as needed to complete the tasks listed below.

Prepare a table showing

• Definitions for finance, financial accounting, managerial accounting, and managerial economics.
• Describe how the disciplines are connected.

All information, including explanations, should be presented in the table.

SLP Assignment Expectations

Use Excel to create an easy-to-read table with headings and colors or shading where appropriate. The content is most important, but a professional-looking format matters too. Assume that this table will be part of a formal presentation.

If you do not have a lot of experience with Excel, the site below offers brief and free tutorials. 

http://www.auditexcel.co.za/video-tutorials/

Module 2 - Background

BALANCE SHEET

Modular Learning Objectives

Keep the following objectives in mind as you work through the material in this module:

• Describe the content and purposes of the balance sheet.
• Define assets, liabilities, and equity.
• Differentiate between short-term and long-term assets.
• Differentiate between short-term and long-term liabilities.
• Explain retained earnings.
• Interpret information presented in a balance sheet.

Required Reading

The emphasis is on the balance sheet, but we need to understand how the four financial statements are connected. Let us start with two brief videos describing financial statements.

AccountingWITT. (2011, Oct. 1). Financial Statements – An Introduction. [Video file].  Retrieved from https://www.youtube.com/watch?v=dqOCRIcapoI&list=PLBvbcPpX_6wSF3UQwLxdRNJeK4cSGWkx8&index=21

 

AccountingWITT. (2011, Oct. 20). Financial Statements – Interconnectivity. [Video file].  Retrieved from https://www.youtube.com/watch?v=9OX3Cnd35LE&index=26&list=PLBvbcPpX_6wSF3UQwLxdRNJeK4cSGWkx8

 

Next, view the video below and read a succinct explanation for an introduction to the balance sheet.

The Motley Fool. (n.d.). Balance Sheet. Retrieved from http://wiki.fool.com/Balance_sheet

Cliqvid. (2013, February 13). What is a balance sheet? [Video File]. Retrieved from https://www.youtube.com/watch?v=ixCPM5HznRU

 

It is now time for a somewhat more comprehensive overview of a balance sheet. At this time it is sufficient to review the section on the balance sheet.

Baruch College’s Guide to Financial Statements. [Interactive Presentation]. (2008). Retrieved from http://www.baruch.cuny.edu/tutorials/statements/view_tutorial.html

The Securities and Exchange Commission (SEC) also offers an excellent Beginner's Guide to Fianancial Statements that provides a good introduction.

Optional Reading

Accounting Coach. (n.d.). Dictionary of accounting terms. Retrieved from http://www.accountingcoach.com/terms

Walther, L. M. (2017). Principles of accounting: A complete online text. Retrieved from http://www.principlesofaccounting.com/. Note that there are also many useful videos associated with Dr. Walther's textbook.

 

 

 

 

 

 

Discussion: Accounting is a Global Business Language

 

Previous Next 

Accounting is becoming a global business language. Provide some evidence of this assertion. What are some of the implications of this trend?   

Do research on the Internet and show references for the information. Comments should be in your own words. Do not forget to interact with other participants by following up with additional ideas or examples.

 

 

 

 

 

 

 

 

 

Module 2 - Case

BALANCE SHEET

Assignment Overview

The main purpose of this module is to review the balance sheet in more detail. Go to http://www.starbucks.com and click on the investor relations link. Locate the annual reports for the past two years. Review Starbucks’ financial report, review background material, and do additional research as needed to write an essay where you incorporate answers to the questions below.

 

IBISWorld is a proprietary database providing industry research. It is accessible via the Trident Online Library. The database is found under additional library resources and offers a lot of interesting industry information including financial information.

Case Assignment

Questions

• Go to the IBIS database and find information for coffee store franchises in the iExpert Industry Summary. Add three facts about the industry and comment on the information relative to Starbucks.
• Distinguish between an expense (expired cost) and an asset.
• Distinguish between short-term and long-term assets.
• Distinguish between short-term and long-term liabilities.
• Review Starbucks’ balance sheet and provide two examples of each of the above categories (short-term assets, long-term assets, short-term liabilities, and long-term liabilities).
• How much debt does Starbucks have? Is the amount of debt high? How do we know if it is considered high? (Hint: Find financial information in IBIS World.)
• Discuss retained earnings and how income or loss and dividends affect this account. Review Starbucks’ retained earnings account and explain how it changed during the past two years. Show details.
• What is the difference between an annual report and a 10-k? Do companies have to publish both reports? Does Starbucks publish both?
• Who were the auditors for the financial statements?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

 

 

 

 

 

Module 2 - SLP

BALANCE SHEET

Below find a balance sheet for VWV Company.

VWV Company

Balance Sheet

December 31, 20XX

Assets

Liabilities

Current assets

Current liabilities

Cash

$72,000

Accounts payable

$12,000

Accounts receivable

18,000

Interest payable

12,000

Interest receivable

1,000

Inventory

60,000

Total current assets

$151,000

Total current liabilities

$24,000

Long-term assets

Long-term liabilities

Equipment (net of depreciation)

$128,000

Note payable

100,000

Total long-term assets

$128,000

Total long-term liabilities

$100,000

Equity

Common stock

10,000

Paid-in capital

50,000

Retained earnings

95,000

Total equity

$155,000

Total assets

279,000

Total liabilities and equity

$279,000

Required:

• Recreate the balance sheet in an Excel spreadsheet. Use cell formulae to add and subtract numbers. Add a column next to the balance sheet for answers to the questions listed below.

Questions:

• Is accounts payable larger or smaller than accounts receivable? What is the difference? What do the numbers indicate? Explain.
• What does "equipment net of depreciation" mean?
• Are payables short-term or long-term?
• Determine total liabilities.
• Determine net short-term assets or liabilities.
• Determine the total amount owed by VWV at the end of the year.
• How do we know that the above is a corporate (not a sole proprietor) balance sheet?

SLP Assignment Expectations

Submit the Excel spreadsheet. All information should be part of the spreadsheet. Written comments should be brief and refer to the balance sheet. Both content and presentation matter.

Module 3 - Background

INCOME STATEMENT

Modular Learning Objectives

Keep the following objectives in mind as you work through the material in this module:

• Describe the content and purpose of the income statement.
• Define revenues.
• Define cost of goods sold.
• Define operating expenses.
• Recognize items subject to depreciation.
• Interpret information presented in an income statement.

Required Reading

Let us first view a short video about a simple income statement.

Wall Street Survivor. (2012, November 30). Introduction to income [Video File]. Retrieved from https://www.youtube.com/watch?v=2RupCSFcY7w

 

Next, view the video below and read a succinct explanation for an introduction to the income statement.

The Motley Fool. (n.d.). Income Statement. Retrieved from http://wiki.fool.com/Income_statement

It is now time for a somewhat more comprehensive overview of an income statement. At this time it is sufficient to review the section about the income statement.

Baruch College’s Guide to Financial Statements. [Interactive Presentation]. (2008). Retrieved from http://www.baruch.cuny.edu/tutorials/statements/view_tutorial.html

The Securities and Exchange Commission (SEC) also offers an excellent Beginner's Guide to Fianancial Statements that provides a good introduction.

Optional Reading

Accounting Coach. (n.d.). Dictionary of Accounting Terms. Retrieved from http://www.accountingcoach.com/terms

Walther, L. M. (2017). Principles of accounting: A complete online text. Retrieved from http://www.principlesofaccounting.com/ . Note that there are also many useful videos associated with Dr. Walther's textbook.

 

 

Discussion: Financial Statements – Interested Parties

 

Previous Next 

Who may be interested in an entity’s financial statements? Mention two potentially interested readers (individuals, groups, or organizations) of financial statements and explain how the information may be useful to them.

Do research on the Internet and show references for the information. Comments should be in your own words. Do not forget to interact with other participants by following up with additional ideas or examples.

 

Previous Next 

Who may be interested in an entity’s financial statements? Mention two potentially interested readers (individuals, groups, or organizations) of financial statements and explain how the information may be useful to them.

Do research on the Internet and show references for the information. Comments should be in your own words. Do not forget to interact with other participants by following up with additional ideas or examples.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Module 3 - Case

INCOME STATEMENT

Assignment Overview

Use the same annual statements for Starbucks as for the prior module. The Starbucks income statements should be used for the first two questions. Do additional research as necessary for the last question.

IBISWorld is a proprietary database providing industry research. It is accessible via the Trident library. The database is found under additional library resources and offers a lot of interesting industry information including financial information.

Case Assignment

• Locate the income statement for the past two years. Prepare a table in good format comparing at least ten revenue and expense items for the two years. Did the numbers increase or decrease? What can we learn from this information?
• Comment on the changes from one year to another. Is the company doing better or worse? Did revenues and expenses increase or decrease? Are revenues and expenses moving in the same direction?
• How is Starbucks doing vis-à-vis the industry? Use IBISWorld to answer this question.
• Investors emphasize earnings per share. Why is this number so important and what are some of the shortcomings of this number?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. Incorporate the required table into the Word document. Do not submit a separate spreadsheet. The suggested length is five to seven pages, including the table.

 

 

 

 

Module 3 - SLP

INCOME STATEMENT

We reviewed the balance sheet for VWV in the prior module. This time we are examining the income statement for the same entity.

VWV Company
Income Statement
For the Period Ending December 31, 20XX
Revenues		$540,000
Cost of goods sold		200,000
Gross profit		$340,000
Operating expenses
	Salaries	$100,000
	Lease for office	30,000
	Advertising and promotion	24,000
	Utilities	9,700
	Property taxes	18,000
	Payroll taxes	11,500
	Insurance	8,000
	Depreciation	19,922
	Miscellaneous expenses	9,000
Total operating expenses		$230,122
Operating income		$109,878
Interest income		$250
Interest expense		12,000
Net interest expense		$11,750
Net income		$98,128

Use the above income statement to answer the questions below.

1. Is VWV a manufacturer/reseller or a service company?
2. Explain the term cost of goods sold in your own words. Why is this item significant?
3. Does the company have employees?
4. Does the company own some type of property? Can we tell from looking at the income statement alone or do we need to look at the balance sheet too?
5. Are earnings per share important information for VWV Company?
6. How do the dividends affect the income statement?
7. How do we know that VWV Company is using the accrual basis of accounting? Hint: Do not forget to look at the balance sheet from the prior module.
8. Why is the company using the accrual basis of accounting rather the cash basis?
9. Comment on operating income versus net income.

SLP Assignment Expectations

Use Word and respond in a question and answer format. There is no need to use Excel for this particular SLP.

Module 4 - Background

ACCOUNTING STANDARDS AND FINANCIAL STATEMENT ANALYSIS

Modular Learning Objectives

Keep the following objectives in mind as you work through the material in this module:

• Identify organizations and government agencies relevant for setting accounting standards.
• Define US GAAP and IFRS.
• Understand SEC’s role and required corporate filings.
• Understand the external auditor’s role.
• Compute financial ratios.
• Interpret financial ratios.

Required Reading

Begin this module by familiarizing yourself with the following sections pertaining to financial reporting and ratio analysis while keeping the above six objectives in mind. Click on the following buttons to explore each topic:

 

 

Optional Reading

Accounting Coach. (n.d.). Dictionary of accounting terms. Retrieved from http://www.accountingcoach.com/terms

Walther, L. M. (2017). Principles of accounting: A complete online text. Retrieved from http://www.principlesofaccounting.com/. Note that there are also many useful videos associated with Dr. Walther's textbook.

 

 

 

 

 

 

 

Discussion: Cash Flow

 

Previous Next 

We have emphasized the balance sheet and the income statement. A third financial statement, the statement of cash flow, is also important. How is the cash flow statement different and what is its purpose?

Do research on the Internet and show references for the information. Comments should be in your own words. Do not forget to interact with other participants by following up with additional ideas or examples.

 

 

 

 

 

 

 

Module 4 Reflective Discussion

 

Previous Next 

Given the readings and assignments in this course discuss three concepts that you believe are likely to be the most important for your own career. Explain how these concepts may be applicable and how you expect the knowledge you have gained to be helpful.

After responding to the Reflective Discussion above, please complete an anonymous Course Evaluation Survey. Instructors are not able to view course evaluation reports until after the grade submission period is over. Thank you for your feedback.

 

 

 

 

 

 

Module 4 - Case

ACCOUNTING STANDARDS AND FINANCIAL STATEMENT ANALYSIS

Assignment Overview

Use the latest financial statements from Starbucks to compute ratios for the categories listed below. Use the formulae shown in the segment on “tools for financial statement analysis."

IBISWorld is a proprietary database providing industry research. It is accessible via the Trident library. The database is found under additional library resources and offers a lot of interesting industry information including financial information.

Case Assignment

Part I

Compute two ratios for each of the following categories.

• Liquidity ratios
• Debt service ratios
• Profitability ratios

Compare the ratios computed with industry ratios. Use IBISWorld.

Show the computations and summarize the information in an easy to read table.

Part II

Write a three-paragraph memo to comment on the ratios computed and how the company is doing relative to its industry.

• Paragraph 1: What is the purpose of computing the ratios?
• Paragraph 2: What did you learn?
• Paragraph 3: Conclusion/summary of the information.

Address the memo to your instructor. Follow APA format. See sample at the following link: https://owl.english.purdue.edu/owl/resource/590/04/

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

 

 

 

 

 

 

Module 4 - SLP

ACCOUNTING STANDARDS AND FINANCIAL STATEMENT ANALYSIS

It is not always easy to read and understand financial statements. Format and standards are important for comparisons across companies and over time. To conclude the series of assignments for this course we will look at the agencies creating and enforcing the standards and some related concepts.

Search the course background information, the Internet and/or the Trident Online Library in addition to the Starbucks annual reports. Discuss the terms listed below. Explain why the following concepts/governing agencies are important to financial statements in general and to Starbucks.

• Financial Accounting Standards Board (FASB)
• Generally Accepted Accounting Principles (US GAAP)
• American Institute of Certified Public Accountants (AICPA)
• International Accounting Standards Board (IASB)
• International Financial Reporting Standards (IFRS)
• Securities and Exchange Commission (SEC)
• Public Company Accounting Oversight Board (PCAOB)
• Annual report; and
• 10-K, 10-Q, and 8-K

SLP Assignment Expectations

Use Word and respond in a question and answer format. There is no need to use Excel for this particular SLP.