10389 Financial Statement Analysis 1

Credits: 6 advanced credits in Management or in Accounting

Prerequisites: 36 credits, including Financial Theory; one of the following: Introduction to Accounting or Accounting Principles for Students of Accounting; and one of the following: Cost and Managerial Accounting or Managerial Accounting for Students of Accounting. Students must also fulfill all English requirements and take bibliographic instruction in the Library.

Authors: Jacob Kamin, Joshua Livnat, Yair Bahar, Arie Nachmias

The course provides the student with the tools required to analyze financial statements of business firms and expands the student’s accounting knowledge from the perspective of users – investors and creditors.

Topics: The market for financial information – supply and demand; Financial analysis tools, sources and methodology; Financial ratios – short-term and long-term liquidity analysis; Efficiency and profitability analysis; Cash flow analysis; Company valuation; Applying financial analysis – predicting a business failure; Applying the analysis – a comprehensive example. In the final part of the course, the student performs a comprehensive and in-depth analysis of financial statements, prospectuses and other information relating to a specific company.

1Students who are taking this course in the framework of a program of study toward a degree in Accounting with a Division of Studies in Economics may not write a seminar paper in this course.