662.611.01 - Johns Hopkins University

JOHNS HOPKINS UNIVERSITY WHITING SCHOOL OF ENGINEERING MASTER OF SCIENCE IN ENGINEERING MANAGEMENT FINANCE AND ACCOUNTING,

EN 662.611.01, Fall 2011

Tuesday 3-5:30pm Location: Hodson 303 INSTRUCTOR:

Annette Leps, CPA, MBA Rm. 102, Whitehead Hall, x 7113 Email: [email protected] Office Hours: MW 10:30 to 11:30 TTH 10:30 to 11:30 & by appointment

COURSE DESCRIPTION: Finance and Accounting: This course includes a review of financial accounting with an emphasis on the implications of GAAP selections and other managerial decisions on the financial statements. Historic financial performance is assessed using ratio analysis. Relevant cash flows are used in capital budgeting situations; projects are analyzed using discounted cash flow techniques as a measure of valuation. Managerial accounting topics of financial forecasting, cost accumulation, cost allocation, product costing, and variance analysis are used in decision making. REQUIRED TEXT: Easton, Halsey, McAnally, Hartgraves and Morse, Financial & Managerial Accounting for MBAs, 2 nd edition, 2010, Cambridge Business Publishers; ISBN 978-1-934319-35-2. COURSE OBJECTIVES: A few key objectives include: 1. Develop a conceptual understanding of financial reporting, financial statement analysis and valuation 2. Increase the ability to read and understand financial statements and related information 3. Understand how financial statement information can help solve business problems 4. Determine “true cost” through appropriate cost accumulation and cost allocation techniques 5. Encourage structured yet creative thinking when analyzing or forecasting financial information 6. Enhance EXCEL skills through the construction of financial decision making models, and 7. Practice communicating decisions and ideas through oral and written communication

STUDENT RESPONSIBILITIES AND CLASS POLICIES: (1) Class attendance is vital to the successful completion of this course. Students are required to come to class having read the materials and having completed assigned text exercises/problems and Problem Sets. (2) Students are expected to take all examinations and to complete all assignments on the required dates. Conflicts or other issues must be brought to the attention of the instructor before the scheduled test time. Make-up exams may be arranged only at the discretion of the instructor and the Department. (3) Text exercises and problems have been assigned, but solutions will not be collected or graded; students may collaborate without restriction for purposes of solving the text problems. Problem Sets, however, will reflect group work and will be graded; groups of three will change weekly during the semester and will be determined in class. While a “group” grade will be awarded, individual absences and peer evaluation may factor into the individual grade. (4) Midterm tests and the final exam reflect individual effort only and are due on the assigned date. No collaboration is allowed. (5) The focus of midterm tests, the final exam, and Problem Sets will be on qualitative and quantitative analysis. Calculators and EXCEL are permissible and are expected to be used. (6) This course is on Blackboard. The site will be used to deliver homework solutions, special instructional information, course announcements, and other items of student interest. Please monitor the site regularly. Individual grades will be posted on Blackboard and any discrepancies must be brought to my attention for resolution before December 2, 2011. (7) It is the responsibility of the student to obtain notes and assignments from colleagues for any classes that were missed. COLLEGE POLICY REGARDING STUDENT DISABILITIES: If you have a disability that requires special testing accommodations or other classroom modifications, please present a letter from Dr. Richard Sanders (Director of Academic Advising in Arts & Sciences) stating the disability and the exact accommodations needed. I will do my best to accommodate you in any way. Please do not be shy about coming forward.

ACADEMIC ETHICS The strength of the university depends on academic and personal integrity. In this course you must be honest and truthful. Ethical violations include cheating on exams, plagiarism, reuse of assignments, improper use of the Internet and electronic devices, unauthorized collaboration, alteration of graded assignments, forgery and falsification, lying, facilitating academic dishonesty, and unfair competition. Report any violations you witness to the instructor. You may consult the Associate Dean of Student Affairs and/or chairman of the Ethics Board beforehand. See the guides on “Academic Ethics for Undergraduates and Ethics Board Website (http://ethicsjhu.edu) for more information. EVALUATIONS: A 90-100 B 80-89 C 70-79 D 60-69 F Below 60 Pluses and minuses will be used at the discretion of the instructor. GRADING: Midterm #1 Midterm #2 Final exam Problem Sets Total

20% 20% 25% 35% 100%

Key: P= Textbook problem E=Textbook exercise M=Textbook mini exercise PS=Problem Set Date Module(s) Topic

8/30 9/6

1,2 3,5

9/13

6

9/20

6, Appendix 8A

9/29 8 Thurs. 10/4 7(p. 1-27); 9, 10(p.1-6; 1222) 10/11

Accounting Framework Accounting Adjustments and the Financial Statements Operating Assets: M6-12,16; Receivables and Inventory E6-25, 27,30; P6-39,41 Operating Assets(cont.): M6-19; E6-32; P6PP&E, Time Value of 42 Money Debt E8-24,27,31,33,38 Investments, Equity and Other

10/18

14,15,16

No Class-Fall Break Schedule Cost Behavior and CVP

11/25

17 (p. 1-21), 18

Product Costing/ABC

11/1

21

Operational Budgets

11/8 11/15 11/22

22 24 IBC Packet; Appendix 4C; 1-4;1-19 thru 1-25 IBC Packet; Appendix 4C; 1-4;1-19 thru 1-25

Standard Costs Capital Budgeting Financial Statement Analysis

11/29

12/8

Textbook (not graded or collected) P2-39, 40, 45 P3-43,49; MA 3-50; E5-23,24,26,27

Financial Statement Analysis/ Financial Forecasting Final Exam: IBC#7, financial plan, problems

Problem Set/Exams Due PS1

PS 2

Midterm1, PS 3

E7-22,32,35; E9-38,43,44; P9-48,52; M10-15; P10-30

PS 4

M13-14; M14-14, E14-19, P14-25; P15-28,32 E17-25, P17-32,36; E18-22, P18-25 E21-27, 29, 30, 32, 34 P22-27, 28 E24-21, 22; P24-30 IBC # 1-5 (to be turned in as PS 9)

PS 5 Midterm 2

IBC #6

PS 10

PS 6

PS 7 PS 8, 9