Knauss School of Business

University of San Diego

GSBA 507, Section 1: Financial Accounting and Statement Analysis

Dr. Barbara Lougee Office Hours (on campus, in 213 Olin, & virtual, via Zoom)
Email: blougee@sandiego.edu - Monday & Wednesday: 1:30-3:00 pm
Phone: 619.260.7892 - Tuesday & Thursday: 2:30-3:30 pm
Office: 213 Olin Hall Zoom Link: https://sandiego.zoom.us/my/blougee

Course Description:

This course provides an introduction to the financial reporting system that business entities use to convey information to
external parties. The primary emphasis is on understanding financial statements, what they impart about a business entity,
and how to use this information to make decisions. Students learn the basic accounting principles, conventions and concepts
underlying financial reporting with the objective of developing the ability to analyze and interpret financial statements. The
course provides an understanding of the financial reporting process, including what motivates a manager to select a particular
accounting treatment and how this choice affects the financial statements.

Learning Objectives:

Students who successfully complete this course will be able to:

● Locate information about the activities and financial results of publicly traded business entities
● Create basic financial statements
● Interpret financial statements
● Identify sources of profitability and disaggregate return on equity
● Analyze liquidity and solvency

Course Materials, Required:

1. McGraw Hill Connect: Homework Platform and Online Text: Connect is an online learning platform and homework
manager. It provides access to (1) the online text, (2) your homework assignments for each chapter of the text, and (3)
video content for the text.

• Online Text: Financial Accounting for Managers, 1st edition, by Thomas, Drake, Thornock, and Spiceland (McGraw
Hill, 2023). Access the online text using the links to Connect in Blackboard.
• Connect Homework Platform: The only way to access your homework assignments in Connect is by logging in to
the GSBA 507 Blackboard course, navigating to Assignments, and clicking the link to the relevant homework
assignment.
You must have Connect access to complete the homework assignments. Instructions for purchasing access to Connect
are in the GSBA 507 Blackboard course (in the “Learning Modules” folder). If you have trouble using Connect, visit
http://mpss.mhhe.com for links to chat or e-mail support, or call 1-800-331-5094.

2. Lecture Notes and Other Course Materials: Download these materials from the GSBA 507 course on Blackboard, which
is organized by topic. Download the lecture notes before class and use them to take notes during class. The lecture notes
will help you identify important concepts.
To access materials on Blackboard, go to “https://ole.sandiego.edu” and log in using your USD username and password.
If you have not done so already, set up mail forwarding so that mail sent from Blackboard is forwarded to your email
account.
Course Requirements and Student Evaluation:

To succeed in this course, each student must complete all of the items listed below. Your course grade will be based on your
overall score, calculated with each component weighted as follows:

Item Weight Due Date

Class Engagement 7.5% Throughout the course

Sept. 5, 9, 14, 23, 28, 30
Connect Assignments (homework) 30% Oct. 5, 7, 14

Exam 1 (in class) 27.5% September 18

Exam 2 (in class) 35% October 18

Letter grades: The letter grade will be based on the overall score, expressed as a percentage of the total points possible
(with each component weighted as indicated above).

93.0% or higher A
90.0% and below 93.0% A-
87.0% and below 90.0% B+
83.0% and below 87.0% B
80.0% and below 83.0% B-
77.0% and below 80.0% C+
73.0% and below 77.0% C
70.0% and below 73.0% C-
60.0% and below 70.0% D
Below 60.0% F

Exams: There will be two closed-book exams administered in class. Each exam will emphasize the material presented
during the corresponding portion of the course. The exams are cumulative only in the sense that basic techniques covered
in Part I (Financial Reporting Basics) of the course provide a foundation for the material presented later in the course.
Exams will emphasize concepts covered in class and interpretation of financial information. During exams you may use a
(standalone, basic) calculator, but you may not use any other electronic devices (for example, smart phones, smart watches
and tablets). You may also bring one flat (two dimensional) 8.5” x 11.0” page of notes to each exam.
Note: Makeup exams will only be given under extremely unusual circumstances (for example, a death in your immediate
family or a serious illness accompanied by a note from a physician at USD’s Wellness Center (or other local medical
provider). You must receive approval from the professor prior to the exam date in order to take a makeup exam.

Assignments:
• Connect Assignments (graded): These homework assignments will be graded and must be completed using the
Connect homework platform. Each Connect assignment is based on one chapter of the text and includes different
types of questions: Brief Exercises (BE), Exercises (E), Problems (P), Real World Perspectives (RWP), Tableau
Dashboard Activity (TDA), and Data Visualization (DV). These assignments reinforce important concepts and provide
practice applying what you learned. Student submissions are automatically graded and recorded in Blackboard. The
individual exercises in each assignment vary in level of difficulty, and many are algorithmically generated (which
means the values differ from student to student). You may work on these assignments in groups, but each of you
must submit your own work.

2
 • Connect Assignments – continued: In each assignment, the points for individual exercises and problems vary from
1 to 10, depending on the length and difficulty. Most assignments are due 3 days after we finish covering the chapter
in class; for due dates, see Schedule (on last 2 pages of this syllabus) or Blackboard. To receive full credit,
assignments must be submitted via Connect (by 11:59 pm on the due date). After 11:59 pm on the due date,
submissions will be marked late automatically and will receive a maximum of 70% credit. Submissions received more
than 2 weeks after the due date will not receive any credit.
• Other Assignments (not graded): These exercises and case studies provide experience applying the techniques
introduced throughout the course to analyze the financial statements of real companies. Although these
assignments will not be graded, they will enhance your learning via real world application.
• Important facts about this course:
o Although it is beneficial to work these assignments in groups, the only way to learn accounting is to work
problems yourself. Watching others work problems will not prepare you adequately for exams.
o Keeping up with the work is critical for success in this course. You must master the material presented at the
beginning of the course in order to understand the material presented later--the material builds on itself and
becomes increasingly complex. Throughout the course, be patient and keep in mind that learning the
mechanics of the accounting is necessary in order to develop the ability to interpret financial statements.

Class Engagement: Your class engagement score will be based on your level of engagement and professionalism
throughout this course. To receive a satisfactory grade, you must demonstrate that you have prepared for class and behave
in a professional manner. Asking insightful questions, volunteering answers in class, and emailing me current, relevant
articles from the business press will increase your class engagement grade.

Student Disability Statement

The University of San Diego complies with the American with Disabilities Act and Section 504 of the Rehabilitation Act. Any
student who may require an accommodation under such provisions should contact me (Dr. Lougee) as soon as possible or as
soon as they become aware. No retroactive accommodations will be provided. A student with disabilities must formally
register with and provide documentation of their disability to the Disability and Learning Difference Resource Center, Serra
Hall Room 300 (phone, 619.260.4655 or email, disabilityservices@sandiego.edu).

Academic Integrity Statement:

The University of San Diego policy on the Integrity of Scholarship contained in the Graduate Bulletin is a part of this course.
Please read this policy. Violations of academic integrity include the following: (1) unauthorized assistance on an exam; (2)
falsification or invention of data; (3) unauthorized collaboration on a case study (for example, using solutions or data obtained
from students who completed this course in the past); (4) plagiarism; (5) misappropriation of research materials; and (6)
unauthorized access of an instructor’s files or computer account. Violations of the University’s academic honesty policy could
result in a failing grade in this course and failure to graduate from the program.

Knauss School of Business Mission Statement:

We develop socially responsible business leaders with a global mindset through academically rigorous, relevant, and values-
based education and research.

3
 GSBA 507-01: SCHEDULE FTMBA, FALL 2023

Session Topic(s) Reading1 Connect Assignments2 Other Assignments:

Date (Complete before class) (Complete each homework assignment in Exercises and Case
Connect, after material is covered in class; Studies3
use link in Assignments folder in Blackboard (See instructions for each
to access each assignment) item below)

Sessions I. Financial Reporting Basics

1&2
28-Aug A. Introduction: Text: Chapter 1, Parts A-C; Learning Chapter 2 Homework (due Sept. 5): BE2-1, BE2- Exercise: Cisco (download
30-Aug 1. A Framework for Financial Objectives (“LOs” herein) 1-8 10, BE2-11, BE2-15, E2-1, E2-4, E2-11, E2-15, P2- from Session 1 folder on
Accounting (Chapter 1) Chapter 2, Parts A-D; LOs 1-8 1, P2-4, TDA 2-1, TDA 2-2 (30 points) Blackboard before class on
2. The Financial Statements (Ch. 2) August 28)

Sessions B. The Accounting Cycle: Text: Chapter 3, Parts A-B (skip Part C); Chapter 3 Homework (due Sept. 9): BE3-1, BE3- Exercise: Revenue and
3&4 1. During the Period (Ch. 3) LOs 1-3 2, BE3-3, E3-3, E3-5, E3-7, E3-9, P3-4 (18 points) Expense Recognition
06-Sept 2. End of the Period (Ch. 4) Chapter 4, Parts A-C; LOs 1-7 Chapter 4 Homework (due Sept. 14): BE4-1, BE4- (download from Blackboard)
11-Sept 2, BE4-3, BE4-4, BE4-15, E4-1, E4-2, E4-6, E4-15,
P4-6, RWP4-1 (30 points)

Session 5
13-Sept Catch up and Review for Exam

Session 6 Exam 1 (in class)

18-Sept

Sessions II. Measuring, Reporting & Analyzing
7&8 Financial Statement Items
20-Sept
25-Sept A. Measuring, Reporting & Analyzing
Assets
1. Short-term Operating Assets:
• Revenue & Receivables (Ch. 5)
• Inventory & Cost of Goods Sold
(Ch. 6)
2. Long-term operating assets (Ch. 7)
Text: Chapter 5, Parts A-C; LOs 1-9
Chapter 6, Parts A-C; LOs 1-6
Chapter 7, Parts A-C; LOs 1-7
Chapter 5 Homework (due Sept. 23): BE5-2,
BE5-3, BE5-6, BE5-7, BE5-8, E5-1, E5-2, E5-8, E5-
10, E5-11, RWP5-1, TDA 5-1 (27 points)
Chapter 6 Homework (due Sept. 28): BE6-3, Case: Analyzing Assets—
BE6-5, BE6-6, BE 6-7, E6-2, E6-4, E6-9, RWP6-3, Emerson Electric I
RWP6-6 (19 points) (download from Blackboard)
Chapter 7 Homework (due Sept. 30): BE7-2,
BE7-6, BE7-10, BE7-14, E7-7, E7-11, E7-16, E7-
18, DV 7-2, RWP7-4 (21 points)
Session 9 B. Measuring, Reporting & Analyzing Text Chapter 9, Parts A-C; LOs 1-4, 7, 8 Chapter 9 Homework (due Oct. 5): BE9-2, BE9-4, Case: Analyzing Liabilities—
27-Sept Liabilities (skip LOs 5 & 6) BE9-5, BE9-13, E9-1, E9-3, E9-13, E9-16 (Parts Emerson Electric II
1&2), RWP9-7, TDA9-4 (25 points) (download from Blackboard)

Session 10 C. Measuring, Reporting & Analyzing Text: Chapter 10, Parts A-D; LOs 1, 2, 4, Chapter 10 Homework (due Oct. 7): BE10-3, Case: Analyzing Equity—
02-Oct Stockholders’ Equity 5, 7, 8 (skip LOs 3 & 6) BE10-7, BE10-8, BE10-10, BE10-16, E10-2, E10-11, Emerson Electric III
E10-14, E10-16, RWP10-4 (25 points) (download from Blackboard)

Sessions III. Financial Statement Analysis

11 & 12 Text: Chapter 12, Parts A-B & Appendix Chapter 12 Homework (due Oct. 14): BE12-5, Case: to be announced
04-Oct A. Analyzing Liquidity and Solvency (Dupont Framework); LOs 1-7 & E12-5, E12-6, E12-16, RWP12-1, RWP12-3, (download from Blackboard)
09-Oct B. Analyzing Profitability: ROE 10 (skip LOs 8 & 9) RWP12-4, RWP12-7 (35 points)
Disaggregation Chapter 9, review Part C; LO 8

Session 13 Catch up and Review for Exam

11-Oct

Session 14
16-Oct Prepare for Exam

Session 15
18-Oct Exam 2 (in class)

1 Reading assignments include chapters and/or video content from the online text, Financial Accounting for Managers, 1st edition, by Thomas, Drake, Thornock, and Spiceland (referred
to as “Text” on the syllabus). To access this content and supplemental materials for the text, log on to Blackboard and select any of the links to Connect (in Assignments or Learning
Modules). The assigned “Parts” and “Learning Objectives” (LO’s) in each chapter are listed in the “Reading” column above.

2 Connect assignments: Complete each homework assignment in Connect, after the material is covered in class. Each assignment will be graded by Connect. Your scores will appear in
Blackboard. To access an assignment, login to Blackboard, navigate to “Assignments” and select an assignment.

3 Other assignments: Unless stated otherwise, instructions and questions for other assignments will be on Blackboard. Be prepared to discuss them in class. Solutions will be uploaded to
Blackboard after class.