NOT IN USE - Custom MBA Financial Accounting Placement Course (SMU)
by Easton
ISBN: 978-1-61853-231-2 | Copyright 2020
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| Financial Accounting for MBAs, 7e (pg. 1.iii) | |
| About the Authors (pg. 1.iii) | |
| Preface (pg. 1.v) | |
| Brief Contents (pg. 1.xii) | |
| Contents (pg. 1.xiii) | |
| Module 1: Financial Accounting (pg. 1.1-1) | |
| Under Armour (UA) (pg. 1.1-1) | |
| Reporting on Business Activities (pg. 1.1-3) | |
| International Accounting Standards (pg. 1.1-9) | |
| Review 1-1 (pg. 1.1-5) | |
| Financial Statements: Demand and Supply (pg. 1.1-5) | |
| Demand for Information (pg. 1.1-5) | |
| Supply of Information (pg. 1.1-8) | |
| Review 1-2 (pg. 1.1-10) | |
| Structure of Financial Statements (pg. 1.1-10) | |
| Balance Sheet (pg. 1.1-11) | |
| Income Statement (pg. 1.1-13) | |
| Statement of Cash Flows (pg. 1.1-16) | |
| Statement of Stockholders’ Equity (pg. 1.1-15) | |
| Information Beyond Financial Statements (pg. 1.1-17) | |
| Managerial Choices in Financial Accounting (pg. 1.1-18) | |
| Review 1-3 (pg. 1.1-19) | |
| Analysis of Financial Statements (pg. 1.1-19) | |
| Return on Assets (pg. 1.1-19) | |
| Components of Return on Assets (pg. 1.1-19) | |
| Return on Equity (pg. 1.1-21) | |
| Are Financial Statements Relevant? (pg. 1.1-21) | |
| Financial Statements and Business Analysis (pg. 1.1-22) | |
| Analyzing the Competitive Environment (pg. 1.1-22) | |
| SWOT Analysis of the Business Environment (pg. 1.1-23) | |
| Analyzing Competitive Advantage (pg. 1.1-24) | |
| Review 1-5 (pg. 1.1-25) | |
| Book Road Map (pg. 1.1-26) | |
| Global Accounting (pg. 1.1-26) | |
|  Appendix 1A: Accessing SEC Filings (pg. 1.1-27) | |
|  Appendix 1B: Accounting Principles and Governance (pg. 1.1-29) | |
| Financial Accounting Environment (pg. 1.1-29) | |
| Audit Report (pg. 1.1-30) | |
| Guidance Answers  (pg. 1.1-34) | |
| Questions  (pg. 1.1-34) | |
| Mini Exercises (pg. 1.1-35) | |
| Exercises (pg. 1.1-37) | |
| Problems (pg. 1.1-38) | |
| IFRS Applications  (pg. 1.1-44) | |
|  Management Applications (pg. 1.1-45) | |
|  Ongoing Project (pg. 1.1-45) | |
| Solutions to Review Problems (pg. 1.1-46) | |
| Module 2: Introducing Financial Statements (pg. 1.2-1) | |
| Apple (APPL) (pg. 1.2-1) | |
| Balance Sheet (pg. 1.2-3) | |
| Balance Sheet and the Flow of Costs (pg. 1.2-3) | |
| Assets (pg. 1.2-4) | |
| Liabilities and Equity (pg. 1.2-6) | |
| Review 2-1 (pg. 1.2-12) | |
| Income Statement (pg. 1.2-12) | |
| Recognizing Revenues and Expenses (pg. 1.2-14) | |
| Reporting of Transitory Items (pg. 1.2-14) | |
| Analyzing the Income Statement (pg. 1.2-15) | |
| Review 2-2 (pg. 1.2-16) | |
| Statement of Stockholders’ Equity (pg. 1.2-16) | |
| Review 2-3 (pg. 1.2-17) | |
| Statement of Cash Flows (pg. 1.2-17) | |
| Statement Format and Data Sources (pg. 1.2-17) | |
| Review 2-4 (pg. 1.2-19) | |
| Articulation of Financial Statements (pg. 1.2-19) | |
| Retained Earnings Reconciliation (pg. 1.2-19) | |
| Financial Statement Linkages (pg. 1.2-19) | |
| Review 2-5 (pg. 1.2-21) | |
| Additional Information Sources (pg. 1.2-21) | |
| Form 10-K (pg. 1.2-21) | |
| Form 20-F and Form 40-F (pg. 1.2-23) | |
| Form 8-K (pg. 1.2-24) | |
| Analyst Reports (pg. 1.2-24) | |
| Credit Services (pg. 1.2-25) | |
| Data Services (pg. 1.2-25) | |
| Review 2-6 (pg. 1.2-25) | |
| Global Accounting (pg. 1.2-25) | |
| Guidance Answers  (pg. 1.2-26) | |
| Questions  (pg. 1.2-26) | |
| Mini Exercises (pg. 1.2-27) | |
| Exercises (pg. 1.2-28) | |
| Problems (pg. 1.2-33) | |
|  IFRS Applications (pg. 1.2-35) | |
| Management Applications  (pg. 1.2-36) | |
|  Ongoing Project (pg. 1.2-37) | |
| Solutions to Review Problems (pg. 1.2-37) | |
| Module 3: Transactions, Adjustments, and Financial Statements (pg. 1.3-1) | |
| Apple (AAPL) (pg. 1.3-1) | |
| Basics of Accounting (pg. 1.3-3) | |
| Financial Statement Effects Template (pg. 1.3-4) | |
| Review 3-1 (pg. 1.3-5) | |
| Accounting Cycle Step 1—Analyze Transactions and Prepare Entries (pg. 1.3-6) | |
| Apple’s Transactions (pg. 1.3-6) | |
| Applying the Financial Statement Effects Template (pg. 1.3-6) | |
| Applying the Journal Entry and T-Account (pg. 1.3-6) | |
| Accounting Cycle Step 2—Prepare Accounting Adjustments (pg. 1.3-9) | |
| Prepaid Expenses (pg. 1.3-10) | |
| Unearned Revenues (pg. 1.3-11) | |
| Accrued Expenses (pg. 1.3-11) | |
| Accrued Revenues (pg. 1.3-12) | |
| Accounting Adjustments for Apple (pg. 1.3-12) | |
| Review 3-3 (pg. 1.3-13) | |
| Accounting Cycle Step 3—Prepare Financial Statements (pg. 1.3-13) | |
| Income Statement (pg. 1.3-13) | |
| Balance Sheet (pg. 1.3-14) | |
| Statement of Stockholders’ Equity (pg. 1.3-15) | |
| Review 3-4 (pg. 1.3-16) | |
| Accounting Cycle Step 4—Close the Books (pg. 1.3-16) | |
| Review 3-5 (pg. 1.3-18) | |
| Global Accounting (pg. 1.3-18) | |
| Appendix 3A: FASB’s Financial Statement Presentation Project (pg. 1.3-18) | |
|  Guidance Answers (pg. 1.3-19) | |
|  Questions (pg. 1.3-19) | |
| Mini Exercises (pg. 1.3-20) | |
| Exercises (pg. 1.3-23) | |
| Problems (pg. 1.3-27) | |
| IFRS Applications  (pg. 1.3-32) | |
| Management Applications (pg. 1.3-33) | |
| Solutions to Review Problems (pg. 1.3-35) | |
| Module 4: Analyzing and Interpreting Financial Statements (pg. 1.4-1) | |
| Intel (INTC) (pg. 1.4-1) | |
| Return on Equity (ROE) (pg. 1.4-3) | |
| Review 4-1 (pg. 1.4-4) | |
| ROE Disaggregation: DuPont Analysis (pg. 1.4-4) | |
| Review 4-2 (pg. 1.4-6) | |
| Return on Assets and its Disaggregation (pg. 1.4-6) | |
| Analysis of Profitability and Productivity (pg. 1.4-7) | |
| Analysis of Profitability (pg. 1.4-8) | |
| Analysis of Productivity (pg. 1.4-9) | |
| Analysis of Financial Leverage (pg. 1.4-12) | |
| Review 4-3 (pg. 1.4-14) | |
| Operating Focus on Financial Condition (pg. 1.4-14) | |
| Net Operating Assets (NOA) (pg. 1.4-15) | |
| Review 4-4 (pg. 1.4-19) | |
| Operating Focus on Financial Performance (pg. 1.4-20) | |
| Net Operating Assets (NOA) (pg. 1.4-15) | |
| Review 4-5 (pg. 1.4-24) | |
| Return on Net Operating Assets (RNOA) (pg. 1.4-24) | |
| Review 4-6 (pg. 1.4-26) | |
| RNOA Disaggregation into Margin and Turnover (pg. 1.4-26) | |
| Net Operating Profit Margin (pg. 1.4-27) | |
| Net Operating Asset Turnover (pg. 1.4-27) | |
| Trade-Off between Margin and Turnover (pg. 1.4-28) | |
| Review 4-7 (pg. 1.4-30) | |
| Global Accounting (pg. 1.4-30) | |
|  Appendix 4A: Nonoperating Return Component of ROE (pg. 1.4-31) | |
| Nonoperating Return (pg. 1.4-31) | |
| Nonoperating Return—with Debt Financing (pg. 1.4-31) | |
| Nonoperating Return—With Debt Financing and Nonoperating Assets (pg. 1.4-32) | |
| Nonoperating Return—Without Debt Financing, but with Nonoperating Assets (pg. 1.4-33) | |
| Nonoperating Return—With Debt Financing, NonoperatingAssets, and Noncontrolling Interest (pg. 1.4-34) | |
| Review 4-8 (pg. 1.4-35) | |
| Appendix 4B: Liquidity and Solvency Analysis  (pg. 1.4-36) | |
| Liquidity Analysis (pg. 1.4-36) | |
| Solvency Analysis (pg. 1.4-37) | |
| Vertical and Horizontal Analysis (pg. 1.4-39) | |
| Limitations of Ratio Analysis (pg. 1.4-41) | |
| Review 4-9 (pg. 1.4-42) | |
| Guidance Answers  (pg. 1.4-42) | |
| Questions  (pg. 1.4-42) | |
| Mini Exercises (pg. 1.4-43) | |
| Exercises (pg. 1.4-46) | |
| Problems (pg. 1.4-50) | |
| IFRS Applications (pg. 1.4-59) | |
| Management Applications  (pg. 1.4-62) | |
| Ongoing Project (pg. 1.4-63) | |
| Solutions to Review Problems (pg. 1.4-64) | |
| Module 5: Revenues, Receivables, and Operating Expenses (pg. 1.5-1) | |
| Pfizer (PFE) (pg. 1.5-1) | |
| Revenue (pg. 1.5-3) | |
| Revenue Recognition Rules (pg. 1.5-4) | |
| Complications of Revenue Recognition (pg. 1.5-5) | |
| Performance Obligations Satisfied Over Time (pg. 1.5-6) | |
| Review 5-1 (pg. 1.5-9) | |
| Sales Allowances (pg. 1.5-9) | |
| Accounting for Sales Allowances (pg. 1.5-9) | |
| Reporting Sales Allowances (pg. 1.5-10) | |
| Analysis of Sales Allowances (pg. 1.5-11) | |
| Review 5-2 (pg. 1.5-11) | |
| Unearned (Deferred) Revenue (pg. 1.5-12) | |
| Review 5-3 (pg. 1.5-13) | |
| Foreign Currency Effects on Revenue (pg. 1.5-13) | |
| Foreign Currency and Cash Flows (pg. 1.5-14) | |
| Foreign Currency and Income (pg. 1.5-14) | |
| Foreign Currency and Future Results (pg. 1.5-15) | |
| Review 5-4 (pg. 1.5-15) | |
| Accounts Receivable (pg. 1.5-16) | |
| Aging Analysis of Receivables (pg. 1.5-16) | |
| Accounting for Accounts Receivable (pg. 1.5-17) | |
| Analysis of Accounts Receivable–Magnitude (pg. 1.5-18) | |
| Analysis of Accounts Receivable—Quality (pg. 1.5-20) | |
| Review 5-5 (pg. 1.5-21) | |
| Expenses and Losses (pg. 1.5-22) | |
| Deductions from Income (pg. 1.5-22) | |
| Research and Development Expense (pg. 1.5-23) | |
| Discontinued Operations (pg. 1.5-25) | |
| Review 5-6 (pg. 1.5-26) | |
| Pro Forma Income Reporting (pg. 1.5-27) | |
| Regulation G Reconciliation (pg. 1.5-28) | |
| SEC Warnings about Pro Forma Numbers (pg. 1.5-28) | |
| Disclosures and Market Assessments (pg. 1.5-29) | |
| Review 5-7 (pg. 1.5-31) | |
| Global Accounting (pg. 1.5-31) | |
| Guidance Answers  (pg. 1.5-32) | |
| Questions  (pg. 1.5-32) | |
| Mini Exercises (pg. 1.5-33) | |
| Exercises (pg. 1.5-36) | |
| Problems (pg. 1.5-42) | |
| IFRS Applications (pg. 1.5-47) | |
|  Management Applications (pg. 1.5-49) | |
| Ongoing Project  (pg. 1.5-50) | |
| Solutions to Review Problems (pg. 1.5-51) | |
| Module 6: Inventories, Accounts Payable, and Long-Term Assets (pg. 1.6-1) | |
| Home Depot (HD) (pg. 1.6-1) | |
| Inventory—Costing Methods (pg. 1.6-3) | |
| Capitalization of Inventory Cost (pg. 1.6-3) | |
| Inventory Cost Flows (pg. 1.6-4) | |
| First-In, First-Out (FIFO) (pg. 1.6-5) | |
| Last-In, First-Out (LIFO) (pg. 1.6-5) | |
| Average Cost (AC) (pg. 1.6-6) | |
| Financial Statement Effects of Inventory Costing (pg. 1.6-7) | |
| Review 6-1 (pg. 1.6-8) | |
| Inventory—Reporting (pg. 1.6-8) | |
| Lower of Cost or Market (LCM) (pg. 1.6-8) | |
| LIFO Reserve Adjustments to Financial Statements (pg. 1.6-9) | |
| LIFO Liquidations (pg. 1.6-10) | |
| Review 6-2 (pg. 1.6-11) | |
| Inventory—Analysis Tools (pg. 1.6-11) | |
| Gross Profit Analysis (pg. 1.6-11) | |
| Days Inventory Outstanding and Inventory Turnover (pg. 1.6-12) | |
| Days Payable Outstanding (pg. 1.6-14) | |
| Cash Conversion Cycle (pg. 1.6-14) | |
| Review 6-3 (pg. 1.6-15) | |
| PPE Assets—Capitalization And Depreciation (pg. 1.6-16) | |
| Plant and Equipment (pg. 1.6-16) | |
| Research and Development Facilities and Equipment (pg. 1.6-19) | |
| PPE Assets—Sales, Impairments, and Restructuring (pg. 1.6-20) | |
| Asset Sales (pg. 1.6-20) | |
| Asset Impairments (pg. 1.6-21) | |
| Restructuring Costs (pg. 1.6-22) | |
| Review 6-5 (pg. 1.6-24) | |
| PPE Assets—Analysis Tools (pg. 1.6-25) | |
| PPE Turnover (pg. 1.6-25) | |
| PPE Useful Life (pg. 1.6-26) | |
| PPE Percent Used Up (pg. 1.6-27) | |
| Review 6-6 (pg. 1.6-27) | |
| Global Accounting (pg. 1.6-28) | |
|  Guidance Answers (pg. 1.6-29) | |
|  Questions (pg. 1.6-29) | |
| Mini Exercises (pg. 1.6-30) | |
| Exercises (pg. 1.6-32) | |
| Problems (pg. 1.6-36) | |
| IFRS Applications (pg. 1.6-39) | |
| Management Applications (pg. 1.6-41) | |
| Ongoing Project (pg. 1.6-41) | |
| Solutions to Review Problems (pg. 1.6-42) | |
| Module 7: Current and Long-Term Liabilities (pg. 1.7-1) | |
| Verizon Communications (VZ) (pg. 1.7-1) | |
| Accrued Liabilities (pg. 1.7-3) | |
| Accrued Liabilities Defined (pg. 1.7-3) | |
| Accruals for Contractual Liabilities—Wages Payable Example (pg. 1.7-4) | |
| Accruals for Contractual Liabilities—Deferred Revenue Example (pg. 1.7-5) | |
| Accruals for Contingent Liabilities Defined (pg. 1.7-5) | |
| Accruals for Contingent Liabilities—Warranties Example (pg. 1.7-5) | |
| Review 7-1 (pg. 1.7-7) | |
| Short-Term Debt (pg. 1.7-7) | |
| Accounting for Short-Term Debt (pg. 1.7-7) | |
| Current Maturities of Long-Term Debt (pg. 1.7-8) | |
| Review 7-2 (pg. 1.7-9) | |
| Long-Term Debt—Pricing (pg. 1.7-10) | |
| Pricing of Bonds Issued at Par (pg. 1.7-11) | |
| Pricing of Bonds Issued at a Discount (pg. 1.7-11) | |
| Pricing of Bonds Issued at a Premium (pg. 1.7-12) | |
| Effective Cost of Debt (pg. 1.7-12) | |
| Review 7-3 (pg. 1.7-14) | |
| Long-Term Debt—Reporting (pg. 1.7-14) | |
| Financial Statement Disclosure of Debt Issuance (pg. 1.7-14) | |
| Balance Sheet Reporting (pg. 1.7-15) | |
| Income Statement Reporting (pg. 1.7-16) | |
| Amortization of Discount (pg. 1.7-17) | |
| Amortization of Premium (pg. 1.7-17) | |
| Financial Statement Effects of Bond Repurchase (pg. 1.7-18) | |
| Fair Value Disclosures (pg. 1.7-19) | |
| Review 7-4 (pg. 1.7-20) | |
| Quality of Debt (pg. 1.7-20) | |
| What Are Credit Ratings? (pg. 1.7-21) | |
| What Determines Credit Ratings? (pg. 1.7-22) | |
| Verizon Credit Rating Example (pg. 1.7-23) | |
| Why Credit Ratings Matter (pg. 1.7-25) | |
| Review 7-5 (pg. 1.7-26) | |
| Global Accounting (pg. 1.7-26) | |
| Appendix 7A: Time Value of Money  (pg. 1.7-26) | |
| Present Value Concepts (pg. 1.7-26) | |
| Future Value Concepts (pg. 1.7-31) | |
| Guidance Answers  (pg. 1.7-32) | |
| Questions  (pg. 1.7-32) | |
| Mini Exercises (pg. 1.7-33) | |
| Exercises (pg. 1.7-37) | |
| Problems (pg. 1.7-41) | |
| IFRS Applications (pg. 1.7-45) | |
| Management Applications  (pg. 1.7-48) | |
| Ongoing Project  (pg. 1.7-48) | |
| Solutions to Review Problems (pg. 1.7-49) | |
| Module 8: Stock Transactions, Dividends, and EPS (pg. 1.8-1) | |
| Johnson & Johnson (JNJ) (pg. 1.8-1) | |
| Stockholders’ Equity and Classes of Stock (pg. 1.8-3) | |
| Stockholders’ Equity Accounts (pg. 1.8-3) | |
| Statement of Stockholders’ Equity (pg. 1.8-5) | |
| Preferred Stock (pg. 1.8-6) | |
| Common Stock (pg. 1.8-7) | |
| Review 8-1 (pg. 1.8-8) | |
| Stock Transactions (pg. 1.8-8) | |
| Stock Issuance (pg. 1.8-8) | |
| Stock Repurchase (Treasury Stock) (pg. 1.8-10) | |
| Review 8-2 (pg. 1.8-12) | |
| Stock-Based Compensation (pg. 1.8-12) | |
| Accounting for Stock-Based Compensation (pg. 1.8-14) | |
| Footnote Disclosures for Stock-Based Compensation (pg. 1.8-15) | |
| Review 8-3 (pg. 1.8-16) | |
| Cash Dividends (pg. 1.8-16) | |
| Cash Dividend Disclosures (pg. 1.8-17) | |
| Dividend Payout and Yield (pg. 1.8-17) | |
| Cash Dividends Financial Effects (pg. 1.8-17) | |
| Review 8-4 (pg. 1.8-18) | |
| Stock Splits and Dividends (pg. 1.8-19) | |
| Stock Split (pg. 1.8-19) | |
| Stock Dividend (pg. 1.8-19) | |
| Review 8-5 (pg. 1.8-20) | |
| Accumulated Other Comprehensive Income (pg. 1.8-20) | |
| AOCI Components (pg. 1.8-21) | |
| AOCI Disclosures and Interpretation (pg. 1.8-21) | |
| Review 8-6 (pg. 1.8-22) | |
| Convertible Securities (pg. 1.8-23) | |
| Review 8-7 (pg. 1.8-24) | |
| Earnings per Share (EPS) (pg. 1.8-24) | |
| Review 8-8 (pg. 1.8-26) | |
| Global Accounting (pg. 1.8-26) | |
|  Appendix 8A: Stock-Based Compensation: Reporting and Analyzing (pg. 1.8-27) | |
| Guidance Answers  (pg. 1.8-30) | |
|  Questions (pg. 1.8-31) | |
| Mini Exercises (pg. 1.8-32) | |
| Exercises (pg. 1.8-35) | |
| Problems (pg. 1.8-40) | |
| IFRS Applications  (pg. 1.8-48) | |
| Ongoing Project  (pg. 1.8-52) | |
| Solutions to Review Problems (pg. 1.8-52) | |
| Module 9: Intercorporate Investments (pg. 1.9-1) | |
| Google (GOOG) (pg. 1.9-1) | |
| Intercorporate Equity Investments (pg. 1.9-3) | |
| Passive Investments in Marketable Securities (pg. 1.9-4) | |
| Investments in Debt Securities (pg. 1.9-8) | |
| Review 9-1 (pg. 1.9-9) | |
| Equity Investments with Significant Influence (pg. 1.9-10) | |
| Accounting for Investments with Significant Influence (pg. 1.9-10) | |
| Equity Method Accounting and ROE Effects (pg. 1.9-12) | |
| Review 9-2 (pg. 1.9-14) | |
| Equity Investments with Control (pg. 1.9-15) | |
| Accounting for Investments with Control (pg. 1.9-15) | |
| Review 9-3 (pg. 1.9-25) | |
| Global Accounting (pg. 1.9-26) | |
|  Appendix 9A: Accounting for Derivatives (pg. 1.9-27) | |
| Fair Value Hedge Example (pg. 1.9-28) | |
| Cash Flow Hedge Example (pg. 1.9-28) | |
| Analysis of Derivatives (pg. 1.9-30) | |
| Review 9-4 (pg. 1.9-31) | |
| Appendix 9B: Equity Carve-Outs  (pg. 1.9-32) | |
| Sell-Offs (pg. 1.9-32) | |
| Spin-Offs (pg. 1.9-32) | |
| Split-Offs (pg. 1.9-33) | |
| Analysis of Equity Carve-Outs (pg. 1.9-34) | |
| Review 9-5 (pg. 1.9-34) | |
|  Guidance Answers (pg. 1.9-35) | |
|  Questions (pg. 1.9-35) | |
| Mini Exercises (pg. 1.9-35) | |
| Exercises (pg. 1.9-38) | |
| Problems (pg. 1.9-47) | |
|  IFRS Applications (pg. 1.9-49) | |
| Management Applications  (pg. 1.9-52) | |
|  Ongoing Project (pg. 1.9-53) | |
| Solutions to Review Problems (pg. 1.9-54) | |
| Module 10: Leases, Pensions, and Income Taxes (pg. 1.10-1) | |
| Southwest Airlines (LUV) and FedEx (FDX) (pg. 1.10-1) | |
| Leases (pg. 1.10-3) | |
| Lessee Reporting of Leases (pg. 1.10-3) | |
| New Lease Accounting Rules (pg. 1.10-4) | |
| Footnote Disclosure of Leases (pg. 1.10-5) | |
| Capitalization of Operating Leases (pg. 1.10-6) | |
| Review 10-1 (pg. 1.10-11) | |
| Pensions (pg. 1.10-11) | |
| Reporting of Defined Benefit Pension Plans (pg. 1.10-12) | |
| Balance Sheet Effects (pg. 1.10-12) | |
| Income Statement Effects (pg. 1.10-14) | |
| Fair Value Accounting for Pensions (pg. 1.10-16) | |
| Footnote Disclosure—Pension Plan Assets and PBO (pg. 1.10-17) | |
| Footnote Disclosure—Future Cash Flows (pg. 1.10-19) | |
| Footnote Disclosure—Key Assumptions (pg. 1.10-20) | |
| Analysis Implications (pg. 1.10-21) | |
| Other Post-Employment Benefits (OPEB) (pg. 1.10-22) | |
| Review 10-2 (pg. 1.10-23) | |
| Income Taxes (pg. 1.10-24) | |
| Timing Differences Create Deferred Tax Assets and Liabilities (pg. 1.10-24) | |
| Disclosures for Income Taxes (pg. 1.10-27) | |
| Analysis of Income Tax Disclosures (pg. 1.10-29) | |
| Review 10-3 (pg. 1.10-30) | |
| Global Accounting (pg. 1.10-31) | |
| Appendix 10A: Lease Capitalization Using a Calculator and Present Value Tables (pg. 1.10-31) | |
|  Appendix 10B: Amortization Component of Pension Expense (pg. 1.10-33) | |
|  Appendix 10C: Expanded Explanation of Deferred Taxes (pg. 1.10-35) | |
|  Guidance Answers (pg. 1.10-37) | |
|  Questions (pg. 1.10-37) | |
| Mini Exercises (pg. 1.10-38) | |
| Exercises (pg. 1.10-43) | |
| Problems (pg. 1.10-51) | |
| IFRS Applications (pg. 1.10-59) | |
| Ongoing Project (pg. 1.10-63) | |
| Solutions to Review Problems (pg. 1.10-64) | |
| Module 11: Cash Flows (pg. 1.11-1) | |
| Starbucks Corporation (SBUX) (pg. 1.11-1) | |
| Framework for the Statement of Cash Flows (pg. 1.11-3) | |
| Relation Among Financial Statements (pg. 1.11-3) | |
| Statement of Cash Flows Structure (pg. 1.11-4) | |
| Operating Activities Preview (pg. 1.11-7) | |
| Investing Activities Preview (pg. 1.11-8) | |
| Financing Activities Preview (pg. 1.11-8) | |
| Review 11-1 (pg. 1.11-9) | |
| Cash Flow from Operating Activities (pg. 1.11-9) | |
| Steps to Compute Net Cash Flow from Operating Activities (pg. 1.11-10) | |
| Java House Case Illustration (pg. 1.11-12) | |
| Review 11-2 (pg. 1.11-15) | |
| Computing Cash Flows from Investing Activities (pg. 1.11-16) | |
| Analyze Remaining Noncash Assets (pg. 1.11-16) | |
| Java House Case Illustration (pg. 1.11-16) | |
| Review 11-3 (pg. 1.11-17) | |
| Cash Flows from Financing Activities (pg. 1.11-18) | |
| Analyze Remaining Liabilities and Equity (pg. 1.11-18) | |
| Java House Case Illustration (pg. 1.11-18) | |
| Review 11-4A (pg. 1.11-19) | |
| Computing Cash Flows from Balance Sheet Accounts (pg. 1.11-19) | |
| Supplemental Disclosures for the Indirect Method (pg. 1.11-20) | |
| Review 11-4B (pg. 1.11-21) | |
| Analysis of Cash Flow Information (pg. 1.11-21) | |
| Cash Flow Components (pg. 1.11-21) | |
| Cash Flow Patterns (pg. 1.11-22) | |
| Usefulness of the Statement of Cash Flows (pg. 1.11-25) | |
| Review 11-5 (pg. 1.11-27) | |
| Ratio Analyses of Cash Flows (pg. 1.11-27) | |
| Free Cash Flow (pg. 1.11-28) | |
| Review 11-6 (pg. 1.11-29) | |
| Appendix 11A: Direct Method Reporting for the Statement of Cash Flows (pg. 1.11-29) | |
| Cash Flows from Operating Activities (pg. 1.11-29) | |
| Guidance Answers  (pg. 1.11-32) | |
| Questions  (pg. 1.11-32) | |
| Mini Exercises (pg. 1.11-34) | |
| Exercises (pg. 1.11-36) | |
| Problems (pg. 1.11-42) | |
| IFRS Applications  (pg. 1.11-54) | |
| Solutions to Review Problems (pg. 1.11-56) | |
| Module 12: Financial Statement Forecasting (pg. 1.12-1) | |
| Procter & Gamble (P&G) (pg. 1.12-1) | |
| Forecasting Process (pg. 1.12-3) | |
| Review 12-1 (pg. 1.12-5) | |
| Forecasting the Income Statement (pg. 1.12-6) | |
| Review 12-2 (pg. 1.12-8) | |
| Forecasting the Balance Sheet (pg. 1.12-9) | |
| Review 12-3 (pg. 1.12-12) | |
| The Forecasted Cash Balance (pg. 1.12-12) | |
| Review 12-4 (pg. 1.12-13) | |
| Forecasting Multiple Years Ahead (pg. 1.12-13) | |
| Review 12-5 (pg. 1.12-15) | |
| Refining Financial Statement Forecasts (pg. 1.12-15) | |
| Company Guidance (pg. 1.12-15) | |
| Segment Data (pg. 1.12-17) | |
| Impact of Acquisitions (pg. 1.12-18) | |
| Impact of Divestitures (pg. 1.12-19) | |
| Reassessing Financial Statement Forecasts (pg. 1.12-19) | |
| Review 12-6 (pg. 1.12-20) | |
| Appendix 12A: Forecasting the Statement of Cash Flows (pg. 1.12-20) | |
| Review 12-7 (pg. 1.12-22) | |
| Appendix 12B: Parsimonious Method for Forecasting NOPAT and NOA  (pg. 1.12-22) | |
| Multiyear Forecasting with Parsimonious Method (pg. 1.12-22) | |
| Review 12-8 (pg. 1.12-23) | |
|  Appendix 12C: Morgan Stanley’s Forecast Report on Procter & Gamble (pg. 1.12-23) | |
|  Questions (pg. 1.12-45) | |
| Mini Exercises (pg. 1.12-45) | |
| Exercises (pg. 1.12-51) | |
| Problems (pg. 1.12-60) | |
|  IFRS Applications (pg. 1.12-67) | |
| Ongoing Project  (pg. 1.12-68) | |
| Solutions to Review Problems (pg. 1.12-68) | |
| Module 13: Using Financial Statements for Valuation (pg. 1.13-1) | |
| Procter & Gamble (PG) (pg. 1.13-1) | |
| Equity Valuation Models (pg. 1.13-3) | |
| Dividend Discount Model (pg. 1.13-3) | |
| Discounted Cash Flow Model (pg. 1.13-3) | |
| Residual Operating Income Model (pg. 1.13-4) | |
| Valuation Model Inputs (pg. 1.13-4) | |
| Review 13-1 (pg. 1.13-5) | |
| Discounted Cash Flow (DCF) Model (pg. 1.13-5) | |
| DCF Model Structure (pg. 1.13-6) | |
| Steps in Applying the DCF Model (pg. 1.13-6) | |
| Illustrating the DCF Model (pg. 1.13-7) | |
| Review 13-2 (pg. 1.13-8) | |
| Residual Operating Income (ROPI) Model (pg. 1.13-9) | |
| ROPI Model Structure (pg. 1.13-9) | |
| Steps in Applying the ROPI Model (pg. 1.13-10) | |
| Illustrating the ROPI Model (pg. 1.13-10) | |
| Review 13-3 (pg. 1.13-11) | |
| Further Considerations Involving Valuation Models (pg. 1.13-11) | |
| Managerial Insights from the ROPI Model (pg. 1.13-11) | |
| Assessment of Valuation Models (pg. 1.13-13) | |
| Review 13-4 (pg. 1.13-14) | |
| Global Accounting (pg. 1.13-14) | |
|  Appendix 13A: Derivation of Free Cash Flow Formula (pg. 1.13-15) | |
|  Appendix 13B: Deutsche Bank Valuation of Procter & Gamble (pg. 1.13-15) | |
| Qualitative and Quantitative Summary (pg. 1.13-15) | |
| Financial Statement Forecasts (pg. 1.13-23) | |
| Valuation Model (pg. 1.13-26) | |
| Concluding Observations of Analyst Report (pg. 1.13-27) | |
| Guidance Answers  (pg. 1.13-27) | |
|  Questions (pg. 1.13-28) | |
| Mini Exercises (pg. 1.13-28) | |
| Exercises (pg. 1.13-29) | |
| Problems (pg. 1.13-34) | |
| Management Applications  (pg. 1.13-39) | |
| Ongoing Project  (pg. 1.13-39) | |
| Solutions to Review Problems (pg. 1.13-40) | |
| Appendix A: Compound Interest Tables1 (pg. 1.A-1) | |
| Appendix B: Chart of Accounts (with Acronyms) (pg. 1.B-1) | |
| Appendix C: Comprehensive Case (pg. 1.C-1) | |
| Harley-Davidson (HOG) (pg. 1.C-1) | |
| Reviewing Financial Statements (pg. 1.C-3) | |
| Business Environment for Financial Reporting (pg. 1.C-3) | |
| Income Statement Reporting and Analysis (pg. 1.C-4) | |
| Balance Sheet Reporting and Analysis (pg. 1.C-9) | |
| Statement of Cash Flows Reporting and Analysis (pg. 1.C-22) | |
| Independent Audit Opinion (pg. 1.C-23) | |
| Assessing Profitability and Creditworthiness (pg. 1.C-24) | |
| ROE Disaggregation—DuPont Analysis (pg. 1.C-24) | |
| ROE Disaggregation—Operating Focus (pg. 1.C-25) | |
| Disaggregation of RNOA—Margin and Turnover (pg. 1.C-26) | |
| Credit Analysis (pg. 1.C-26) | |
| Summarizing Profitability and Creditworthiness (pg. 1.C-27) | |
| Forecasting Financial Statements (pg. 1.C-28) | |
| Valuing Equity Securities (pg. 1.C-31) | |
| Discounted Cash Flow Valuation (pg. 1.C-32) | |
| Residual Operating Income Valuation (pg. 1.C-32) | |
| Assessment of the Valuation Estimate (pg. 1.C-32) | |
| Summary Observations (pg. 1.C-32) | |
| Glossary (pg. 1.G-1) | |
| Index (pg. 1.I-1) | |
Peter D. Easton
Peter D. Easton is an expert in accounting and valuation and holds the Notre Dame Alumni Chair in Accountancy in the Mendoza College of Business.
Professor Easton’s expertise is widely recognized by the academic research community and by the legal community. Professor Easton frequently serves as a consultant on accounting and valuation issues in federal and state courts.
Professor Easton holds undergraduate degrees from the University of Adelaide and the University of South Australia. He holds a graduate degree from the University of New England and a PhD in Business Administration (majoring in accounting and finance) from the University of California, Berkeley.
Professor Easton’s research on corporate valuation has been published in the Journal of Accounting and Economics, Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, Review of Accounting Studies, and Journal of Business Finance and Accounting.
Professor Easton has served as an associate editor for 11 leading accounting journals and he is currently an associate editor for the Journal of Accounting Research, Journal of Business Finance and Accounting, and Journal of Accounting, Auditing, and Finance. He is an editor of the Review of Accounting Studies.
Professor Easton has held appointments at the University of Chicago, the University of California at Berkeley, Ohio State University, Macquarie University, the Australian Graduate School of Management, the University of Melbourne, Tilburg University, National University of Singapore, Seoul National University, and Nyenrode University. He is the recipient of numerous awards for excellence in teaching and in research. Professor Easton regularly teaches accounting analysis and security valuation to MBAs. In addition, Professor Easton has taught managerial accounting at the graduate level.
| Financial Accounting for MBAs, 7e (Easton, Wild, Halsey, McAnally) | |
|---|---|
|
Appendix C PDF Last Updated: Aug 21 2017 |
This is the Harley-Davidson case at the end of the book (Appendix C). |
|
Errata - Textbook Last Updated: Feb 22 2018 |
Corrections to the text that were identified after the first printing. |
|
Practice Quizzes Last Updated: Nov 27 2018 |
Brief practice quizzes to each module. |
|
Practice Quiz Solutions Last Updated: Nov 27 2018 |
Solutions to brief practice quizzes. |
|
Excel Templates - Student Last Updated: Oct 26 2017 |
Excel templates for Module Reviews |
