MB 663 - Managerial Accounting
UVG-TAMU
June 2009
Course Syllabus
Instructor:
John B. Penson, Jr.
Regents Professor and Stiles Professor
Department of Agricultural Economics
TexasA&MUniversity
Class meetings:
June 4- June 6
June 11 – June 13
June 18 – June 20
Website for Course Information:
Copies of this syllabus and other communications for this course will be posted on this website:
Please check the Announcements link on that website before coming to class on each Thursday.
Textbook:
No formal textbook assigned
Xeroxed copies of a bookletdesigned for this course will be distributed.
Selected references include:
1.Managerial Accounting by Weygandt, Kieso and Kimmel
Third edition, John Wiley & Sons 2004
2. Business Forecasting by J. Hanke and D. Wichern
Eighth edition, Prentice Hall, 2005
Examinations:
Quiz (first Saturday) 50 points
Mid-term exam (second Saturday)100 points
Team presentation (last Saturday morning)100 points
Team report (due after presentation) 50 points
Final exam (last Saturday afternoon)200 points
Total points500 points
Presentations:
The class will be divided into teams of 3-4 people. You will be asked to analyze financial statements for a business and forecasting future trends in the performance of that business. You will analyze the current financial soundness of the firm, identify key factors likely affecting the product and input markets related to that firm, and provide an analysis of how you would investigate potential expansion of the firm. More will be said about this in class.
Course design:
I will assume that all of you have had a course(s) in financial accounting. The focus of this course will be on the myriad of uses to which the information in financial statements can be applied. The focus of this course is on interpretation of financial statements and managerial applications, and not financial accounting concepts.
Too many businesses complete or have others complete financial statements for their business and then file these statements away in a cabinet or somewhere on a computer hard drive.
As we will discuss, ignoring the information in income statements, cash flow statements and balance sheets runs the risk of not spotting adverse trends in the liquidity, solvency, profitability, efficiency and debt repayment capacity of the firm until it is virtually too late to do anything about it.
- Financial Statement Design
- Financial Indicators of Business Performance
- Cost Accounting concepts and application
- Decision-Making Concepts
- Dynamics of Financial Statement Analysis
- Planning for Capital Investments
- Introduction to Capital Budgeting Methods
- Business Forecasting and Stress Testing
- Accounting for Business and Financial Risk
- Cost of Capital and Optimal Capital Structure
- Ranking Investment Opportunities