Introduction to Financial Reporting
Prof. Bal Radhakrishna
Winter 1996 (Day)

Text: Introductory Financial Accounting, 2nd Ed. Workbook and Textbook

III. COURSE MATERIAL

A. TEXTBOOK CONTENTS

1. Chapters 1-5, 7-11 and Present Value Tables excerpted from Introductory Financial Accounting by Mueller and Kelly. When the syllabus contains a reference to a chapter, it refers to the textbook. 2. The 1994 financial statements for Dayton Hudson, Toro Company and International Dairy Queen. These statements will be used in the lectures to provide real world examples for the topics we cover. They are also the companies whose shares will be traded in our asset market.

B. WORKBOOK CONTENTS

1. Outlines for each of the lecture sessions of the class. You must bring these outlines to class. They will reduce the amount of notes you need to take in class and thus allow us to focus on the most interesting aspects of the material. 2. Solutions for all problems for each chapter in the textbook.

C. PACKET CONTENTS

Practice problem sets (problems and answers for chapters 8, 9 and 10).

D. ASSET MARKET MANUAL

Will be handed out in class. You will need this to participate in the asset market.

IV. ASSET MARKET

You will buy and sell assets in a computerized Asset Market. This market will help you develop an understanding of the role of information in the valuation of a firm. The market will open on January 22 and close on February 16 (this period is noted on the attached calendar by the gray background). You are required to trade in this market. You will begin the market with a number of shares of securities and some cash. In the market you will either sell shares or use your cash to buy more shares. Specifically, you must trade at least 10 assets between January 22 and February 5 and at least 15 assets between February 6 and February 16. As noted on the syllabus, you must hand in a set of financial statements (balance sheet, income statement and statement of cash flows) on February 6 and on February 20. These statements will reflect the status of your portfolio of assets and the income you have earned (or the loss you have incurred) as a trader in the market. This exercise is an important aspect of the class. It allows you to understand the choices that must be made in the construction of the financial statement and the effect that these choices have on asset valuation and income determination. Details on the operation of the market will be provided later.

V. GRADING

Your grade will be composed of the following: Quiz 1 January 30 50 points Quiz 2 February 23 50 points Final Exam 100 points Financial Statements (2 X 20) 40 points Total 240 points Grading will be based on absolute scores as follows: >90% A >75% but < = 90% B >60% but < = 75% C > = 50% D <50% F

VI. CLASS ASSIGNMENTS

A schedule of class assignments are given in the enclosed calendar. You should complete the assignments prior to attending class. Symbols Used in assignments: IFA = Introductory Financial Accounting Pac = Packet Q = Questions at end of chapter PR = Problems at end of chapter

VII. QUIZZES AND EXAMS

Quiz Location: Laboratory Class Room Quiz Dates: Quiz 1 Tuesday, January 30 Quiz 2 Friday, February 23 Financial Statements Due: Set #1 Tuesday, February 6 Set #2 Tuesday, February 20 Final Exam Location: To Be Announced Final Exam Date: Tuesday, March 12, 1996, 10:30-12:30

VIII. ADDITIONAL NOTES

A grade of "I" (Incomplete) for the course will only be given if, for reasons of medical or personal problems, you are unable to take the final exam and you have a passing grade after the two quizzes. University regulations require that incomplete's be made up within one quarter.