Internet Explorer 7, 8, and 9 are no longer supported. Please use a newer browser.
Concourse works best with JavaScript enabled.
University of West Georgia logo

Main Campus · Richards College of Business · Accounting/Finance

Financial Statement Analysis

  • Spring 2021
  • Section 01
  • 3 Credits
  • 01/09/2021 to 05/11/2021
  • Modified 01/06/2021


A study of the use of financial statements and managerial reports by managers and investors in decision making for day to day operations and long range planning.


ACCT 2102 Minimum Grade: D and Richards Col Upper Division RCUD

Contact Information


Dr. Michael Yu

Office Location:

Adamson Hall 215

Office Hours:

Monday and Wednesday from 11:00 to 12:30 pm or by appointment.

Contact Information:

Phone: 678-839-6517

Email: [email protected]  

Meeting Times

Education Center 0200, Monday and Wednesday from 9:30 to 10:45 am


Textbook 1

Krishna G. Palepu and Paul M. Healy, Business Analysis and Valuation: Using Financial Statements, Text and Cases, 4th Edition, South-Western Publishing, 2008, ISBN 032430286X.

Textbook 2

Michael Rees, Financial Modeling in Practice: A Concise Guide for Intermediate and Advanced Level, John Wiley & Sons, 2008, ISBN 978-0470997444.

Course Materials

Excel templates, additional readings, and other recommended materials are available in the course database on Courseden.


Learning Goals

We will build on the following learning goals throughout the term:

First Goal

Understand the impact of alternative accounting principles and other data issues on financial statements (LG4).

Second Goal

Understand and apply financial ratios to draw inferences about business risk and profitability (LG2 and LG4).

Third Goal

Understand and develop forecasted financial statements, and apply valuation models and techniques to assess firm value (LG2 and LG4).


Because you are senior students in a selective program, the expectation is that you will earn either an A or a B in this course, assuming that all assignments and homework are completed in a timely and competent manner. Specifically, evaluation and grades are based on performance on the following activities:

Case Summaries               20 percent

Individual Project              40 percent

Team Project                      40 percent

Total                                      100

Case Summaries (5 points each)

Case summaries must be typed and double spaced in a professional format. Each case is due at the end of the class on the day the case is discussed. Hard copy only. Please see the Course Calendar section for additional instructions.

Projects (40 points each)

We will have two projects during the semester. You will complete the individual project with me in class, and I will provide step-by-step instructions. As long as you do not miss any classes during that period, you should receive 100 percent on this individual project.

The team project is a replication of the individual project. Teams of five or six students will be formed, and each team will choose a real-world company from a list to be provided for their project. After finishing the analysis, each team will make a 15-minute PowerPoint presentation to the class, and the class will have 10 minutes for questions and discussions at the end of the presentation. The project will be completed primarily outside of class, and the presentation dates will be assigned in class after the teams have been formed. To facilitate my grading and enhance your learning experience, you are required to evaluate the contribution of yourself and your teammates to the project. This evaluation form should be turned in separately by individual team members in a sealed envelope before the presentation.

A Word document of the summary of your analysis, an Excel file of your analysis, and a PPT file of your presentation should be emailed to the instructor after your presentation. The summary of your analysis should probably be eight pages in length in double-spaced 12-point font Times New Roman.  For the final presentation, business attire is required and all team members are expected to participate.

As part of our continuing commitment to help our majors gain relevant experience with the increasing use of data analytics in accounting and accounting-related fields, each student in this class is required to sign up for Capital IQ.  We will use data from this database to complete the team project. Further instructions will be provided in class later in the semester.

From a UWG computer or the UWG network – and using your UWG email address – please go to, click on “New User”, and follow the instructions.





Course Calendar

Below are the tentative schedule and assignments. During the course of the semester, it may become necessary to modify portions of the syllabus.  All such changes will be announced in class and all students are responsible for keeping up with any changes.

Session 1, January 11, 13, 20, 25, and 27

  • Topic: Financial Modeling with Excel
  • Required readings: Rees book, Chapters 1 – 8
  • Other materials: Excel examples and lecture notes available in the course database
  • In-class exercises: Basic Excel skills
  • Homework: If you are not familiar with Excel, please read the textbook and go over my lecture notes at least twice after class.

Session 2, February 1 and 3

  • Topic: Introduction to Financial Analysis
  • Required readings: Palepu and Healy book, Chapter 1
  • In-class Case: The role of capital market intermediaries in the dot-com crash of 2000
  • Homework: Please read the case at least three times, and prepare a one-page summary briefly describing the causes of the dot-com crash. Who should we blame? Can we prevent this type of crisis from happening again?

Session 3, February 8, 10, 15, 17, and 22

  • Topic: Accounting Analysis
  • Required readings: Palepu and Healy book, Chapters 3 and 4
  • In-class Cases: 1) Harnischfeger Corporation, 2) Revenue recognition problems in the communication equipment industry
  • Homework: For the first case, please identify five changes in accounting policies or accounting estimates. Are these changes legitimate? Why did the company make these changes? For the second case, please identify the specific problems at Lucent. How would you make adjustments to correct these problems? The maximum length of each summary is 2 pages.

Session 4, February 24, and March 1 and 3

  • Topic: Individual Project
  • Required readings: None

Session 5, March 8 and 10

  • Topic: Financial Analysis
  • Required readings: Palepu and Healy book, Chapter 5
  • In-class Case: United Parcel Service’s IPO
  • Homework: How would you rate UPS’s performance? Does it make sense for UPS to carry out an IPO? How would compare UPS's performance with FedEx's performance? Maximum length is 2 pages plus any attached spreadsheets.

Session 6, March 22 and 24

  • Topic: Strategy Analysis
  • Required readings: Palepu and Healy book, Chapter 2
  • In-class Case: Inventec Corporation
  • Homework: Please prepare a one-page summary. Briefly describe the challenges the company was facing at the time of the case. Does the company have a valid strategy to compete with its competitors? How would you predict the company's future?

Individual project due at 5:00 pm on March 26

Session 7, March 29 and 31

  • Topic: Forecasting
  • Required readings: Palepu and Healy book, Chapter 6
  • In-class Case: Krispy Kreme Doughnuts (KKD)
  • Homework: Please prepare forecasted financial statements for KKD. What factors have you examined when you make your forecast? Does KKD have a valid strategy for growth? Please limit your summary to 2 pages.

Session 8, April 5, 7, 12, and 14

  • Topic: Valuation
  • Required readings: Palepu and Healy book, Chapter 7 and 8
  • In-class cases: 1) Valuation ratios in the restaurant industry, 2) Home Depot in the new millennium
  • Homework: For the first case, explain the characteristics that are driving each firm's valuation multiples. How do you read the exhibits provided by the case?

For the second case, evaluate Home Depot's financial performance and explain whether the company has a valid growth strategy. Please use the three methods, DCF, abnormal earnings, and abnormal ROE, that we have discussed in class to value Home Depot. You may want to copy and modify the template posted in the course database for this exercise. Maximum length is one page plus any attached spreadsheets.

Session 9, April 19 and 21

  • Topic: Credit Analysis and Distress Prediction
  • Required readings: Palepu and Healy book, Chapter 10
  • Additional readings: Wanda Wallace, 2004. Risk Assessment by Internal Auditors Using Past Research on Bankruptcy. The Institute of Internal Auditors Research Foundation, Florida.
  • In-class case: Amazon
  • Homework: List the credit analyst’s key criticisms. Do you agree with these criticisms? What other concerns would you have about Amazon’s performance? What is your assessment of the company’s future? Maximum length is 2 pages.

Final Project presentation on April 26 and 28

College/School Policies

Wolf Pact

Having read the Honor Code for the University of West Georgia, I understand and accept my responsibility to uphold the values described therein and to conduct myself in a manner that will reflect the values of UWG and the Richards College of Business so as to respect the rights of all UWG community members. As a UWG student, I will represent myself truthfully and complete all academic assignments honestly and within the parameters set by my instructor.

I understand and accept that if I am found guilty of violations (through processes due me as a UWG student and outlined in the UWG Student Handbook), penalties will be imposed.

I also recognize that my responsibility includes a willingness to confront members of the UWG community if I feel there has been a violation of the Honor Code.  

Ultimately, I will conduct myself in a manner that promotes UWG as the best place to work, learn, and succeed for my generation, and those to come!

About the Richards College of Business

To become a globally recognized college of business preparing forward-thinking, responsible leaders.

We are in the business of transforming lives through education, engagement, and experiences.

Strategic Goals and Values

Student Success
Admit quality students and provide them with an education that is rich in experiences and engagement opportunities to prepare them to be effective and ethical professionals.

Academic Success
Recruit, retain and develop faculty and staff by providing sufficient resources to support dynamic and up-to-date bachelor and master-level curricula, to conduct research and other professional activities, and to support engagement with all stakeholders.

Operational Success
Recruit, retain and develop administrative management and staff personnel to manage, develop and support infrastructure and those activities that build internal and external partnerships while working in an ever-changing environment.

Ethical Values
The Richards College of Business community (administrators, faculty, staff, students, and business partners) share a commitment to the principles of honesty and integrity in interactions and undertakings, accountability for personal behavior, and respect for the rights, differences, and dignity of others. In addition, we strive to continuously improve our abilities to recognize unethical behavior and to make ethical and moral decisions.

Institutional Policies

Academic Support

Accessibility Services: Students with a documented disability may work with UWG Accessibility Services to receive essential services specific to their disability. All entitlements to accommodations are based on documentation and USG Board of Regents standards. If a student needs course adaptations or accommodations because of a disability or chronic illness, or if he/she needs to make special arrangements in case the building must be evacuated, the student should notify his/her instructor in writing and provide a copy of his/her Student Accommodations Report (SAR), which is available only from Accessibility Services. Faculty cannot offer accommodations without timely receipt of the SAR; further, no retroactive accommodations will be given. For more information, please contact Accessibility Services.

Center for Academic Success: The Center for Academic Success provides services, programs, and opportunities to help all undergraduate students succeed academically. For more information, contact them: 678-839-6280 or [email protected]

University Writing Center: The University Writing Center assists students with all areas of the writing process. For more information, contact them: 678-839-6513 or [email protected]

Online Courses

UWG takes students’ privacy concerns seriously: technology-enhanced and partially and fully online courses use sites and entities beyond UWG and students have the right to know the privacy policies of these entities. For more information on privacy and accessibility for the most commonly used sites, as well as technology requirements visit the UWG Online site.

Students enrolled in online courses can find answers to many of their questions in the Online/Off-Campus Student Guide.

If a student is experiencing distress and needs help, please see the resources available at the UWG Cares site. Online counseling is also available for online students.

Honor Code

At the University of West Georgia, we believe that academic and personal integrity are based upon honesty, trust, fairness, respect, and responsibility. Students at West Georgia assume responsibility for upholding the honor code. West Georgia students pledge to refrain from engaging in acts that do not maintain academic and personal integrity. These include, but are not limited to, plagiarism, cheating, fabrication, aid of academic dishonesty, lying, bribery or threats, and stealing. 

The University of West Georgia maintains and monitors a confidential Academic Dishonesty Tracking System. This database collects and reports patterns of repeated student violations across all the Colleges, the Ingram Library, and the School of Nursing. Each incidence of academic dishonesty is subject to review and consideration by the instructor, and is subject to a range of academic penalties including, but not limited to, failing the assignment and/or failing the course. Student conduct sanctions range from verbal warning to suspension or expulsion depending on the magnitude of the offense and/or number of offenses. The incident becomes part of the student’s conduct record at UWG.

Additionally, the student is responsible for safeguarding his/her computer account. The student’s account and network connection are for his/her individual use. A computer account is to be used only by the person to whom it has been issued. The student is responsible for all actions originating through his/her account or network connection. Students must not impersonate others or misrepresent or conceal their identities in electronic messages and actions. For more information on the University of West Georgia Honor Code, please see the Student Handbook.

UWG Email Policy

University of West Georgia students are provided a MyUWG e-mail account. The University considers this account to be an official means of communication between the University and the student. The purpose of the official use of the student e-mail account is to provide an effective means of communicating important university related information to UWG students in a timely manner. It is the student’s responsibility to check his or her email.

Credit Hour Policy

The University of West Georgia grants one semester hour of credit for work equivalent to a minimum of one hour (50 minutes) of in-class or other direct faculty instruction AND two hours of student work outside of class per week for approximately fifteen weeks. For each course, the course syllabus will document the amount of in-class (or other direct faculty instruction) and out-of-class work required to earn the credit hour(s) assigned to the course. Out-of-class work will include all forms of credit-bearing activity, including but not limited to assignments, readings, observations, and musical practice. Where available, the university grants academic credit for students who verify via competency-based testing, that they have accomplished the learning outcomes associated with a course that would normally meet the requirements outlined above (e.g. AP credit, CLEP, and departmental exams).

HB 280 (Campus Carry)

UWG follows University System of Georgia (USG) guidance:

You may also visit our website for help with USG Guidance:

Mental Health Support

If you or another student find that you are experiencing a mental health issue, free confidential services are available on campus in the Counseling Center. Students who have experienced sexual or domestic violence may receive confidential medical and advocacy services with the Patient Advocates in Health Services. To report a concern anonymously, please go to UWGcares.

ELL Resources

If you are a student having difficulty with English language skills, and / or U.S. culture is not your home culture, specialized resources are available to help you succeed. Please visit the E.L.L. resource page for more information.


Proctored Exams/Online Instruction: Students should be aware and plan ahead for the possibility of having to complete all courses and/or exams online or in a proctored environment. This means talking with your instructors about what minimum technical requirements (software and hardware) will be required should your class move online or a student's personal needs dictate. This also includes making plans for internet access at whatever location participation may occur.

Virtual or in-person proctored exams, if your instructor should require them, may result in an additional cost to the student. Please discuss these details with your instructor or see the information provided here.

Face Coverings: Effective July 15, 2020, University System of Georgia institutions, including the University of West Georgia, will require all faculty, staff, students, and visitors to wear an appropriate face covering while inside campus facilities/buildings where six feet social distancing may not always be possible. Face covering use will be in addition to and is not a substitute for social distancing.

Face coverings are not required in campus outdoor settings where social distancing requirements are met. Anyone not using a face covering when required will be asked to wear one or must leave the area.

Reasonable accommodations may be made for those who are unable to wear a face covering for documented health reasons.

Student FAQs: For more information about UWG COVID-19 guidance for students visit the Student FAQ webpage


Additional Items