Office hours: 11:00-13:00, Tuesday and 12:00-14:00, Thursday and by appointment




The purpose of this course is to teach students how to evaluate company’s performance and health through reading and analyzing the financial statements prepared by the management.

This course helps students to analyze company’s financial statements filed by the management. This course will help students to analyze company financial statements and reveal their true value or condition.

This course is designed to help you understand and interpret financial statements and to value firms.  Much of the analysis is general but the course focuses on financial statements of publicly traded corporations.


Learning Outcomes:

At the end of this course the students will be able to:

  • Understand firm’s competitive position within an industry, its key success factors and risks;
  • Judge how effectively a firm’s financial statements reflect the business economics and strategy;
  • Be able to adjust financial statements of a firm;
  • Examine ratios and cash flow measures of operating and financial performance;
  • Construct meaningful forecasts of the future performance and estimate firm’s value.


Required Reading Material:


Gibson, Charles, “Financial Reporting and Analysis: Using Financial Accounting Information”, 13th Edition, Cengage 2013


Additional readings:

Palepu, Krishna G., and  Paul M. Healy,,Business Analysis & Valuation: Using Financial Statements, Text and Cases”, 4th Edition  South-Western Publishing 2008.


Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso “Financial Accounting”, IFRS Edition: 2nd Edition. Wiley 2012


Other materials will be given during the course


Class schedule:

Session Date Chapters: Please read before coming to class the following assigned chapters. Assignment to be Submitted for Grading in the following Session
1 October  14 Ch1. Introduction to Financial Reporting Presentation and Discussion
2 October  21 Ch2. Introduction to Financial Statements and Other Financial Reporting Topics Presentation and Discussion


3 October  28 Ch3. Balance Sheet Analysis Presentation and Discussion


4 November 04 Ch4. Income Statement Analysis Presentation and Discussion


5 November  11 Ch5. Basics of Analysis Presentation and Discussion

Quiz 1

6 November 18 Ch6. Liquidity of Short-Term Assets; Related Debt-Paying Ability Presentation and Discussion
7 November 25 Mid-term Exam  
8 December 02 Ch7. Long-Term Debt-Paying Ability Presentation and Discussion
9 December 09 Ch8. Profitability Presentation and Discussion


10 December 16 Ch10. Statement of Cash Flows Summary Analysis: Nike, Inc. Presentation and Discussion


Makeup #8 ?? 23.12.2015 (Wed) – 04.01.2016 (Mon.) Christmas Recess
11 January 06 Ch9. For the Investor Presentation and Discussion
12 January 13 Ch11. Expanded Analysis Presentation and Discussion
13 January 20 Ch12. Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies Presentation and Discussion

Quiz 2

14 January 27 General Review Presentation and Discussion
15 February 03 Final exam  

* The instructor reserves the right to make appropriate alternation of the above tentative schedule


Course Requirements

Attendance is mandatory.

If a student is absent for more than 20% of the course (i.e. 12 hours) then a grade of “F” will automatically be awarded. An excused absence must be discussed with the instructor before (when possible) the lecture session to be missed, or immediately upon the student’s return to the following class session.

The class lecture sessions are an integral part of the student’s learning experience and are essential for the students to obtain a mastery of the course material.

Active Participation in class and Assignment are an integral part of the grading system.

Students are advised to read the assigned Chapter before coming to the class. During each class students will be asked to comment on the relevant case studies related to that chapter. The assignments should be submitted within the deadline assigned by the instructor. No late assignment will be accepted unless rare instances in which case no full grade will be granted.

There are no make-up or grade –improvement projects available in this class. It is necessary that you take both exams in order to receive a grade in this course. In no case, will a make-up exam be given prior to exam days, and only in very rare instances, will a make-up exam will be allowed after a mid-term exam. There will be no make-up exam for the Final Exam.

Appropriate class participations

At a beginning of each class students will be asked to discuss and comment on the relevant articles related to financial statement analysis and accounting. The evaluation of articles discussion will go toward the appropriate class participations.

Homework and quizzes

You will be assigned homework throughout the semester to further enhance your learning. The Homework will come from the questions that I will send you after each class. You will be graded on having the homework completed and turned in on time. Homework should be submitted on the day indicated in the schedule. Late homework will not receive credit unless arrangements are made. Answers should be individual.

In class quizzes will occur in certain class session, starting from the second week of the semester. They will be based on the textbook chapter covered on the prior classes. Quizzes will usually occur at the beginning of class.

Group Project

There will be a Group Project / Presentation in this course that students are expected to complete through –out the course. Students will be divided in Groups of 2.


Your grade will be based on the following:

  1. Appropriate class participation                                                            5%
  2. Homework assignment 5%
  3. Project / Presentation 10%
  4. Quizzes x 2 20%
  5. Mid-term exam 30%
  6. Final Exam 30%

Total Points:                                                                                                                                                          100%


Grading Scale will be determined as follows:


Letter Grade Percent (%) Generally Accepted Meaning
A 96-100 Outstanding work
A- 90-95
B+ 87-89 Good work, distinctly above average
B 83-86
B- 80-82
C+ 77-79 Acceptable work
C 73-76  
C- 70-72
D+ 67-69 Work that is significantly below average
D 63-66
D- 60-62
F 0-59 Work that does not meet the minimum standards for passing the course



General Policies:

  1. Regular attendance is expected.  If there is an urgent reason to be absent, please email the instructor in advance. A student may not enter an examination without having justified all of his/her absences.
  2. Assignments will be collected at the beginning of the class session.  There will be a 10% daily deduction for late assignments (up to 2 days only, thereafter no grade will be given) unless you make special arrangements with the instructor in advance via email communications.
  3. Any violation of academic honesty principles, e.g. plagiarism, will result in an automatic F on the course, in line with UNYT’s Honour Code policies.
  4. Make-up exams will be given only in the case of a confirmed medical excuse.  If possible, please advise the instructor in advance by email.


Outside Support:  As a service to its students UNYT has created a series of support centers. For support related to study skills and time management, the Academic Support Center offers students tutoring and coaching. The Writing Center gives students feedback and help with papers and other writing assignments. If you feel that you have any exceptional learning difficulties or serious problems that interfere with your studies, you can stop by the UNYT Counseling Center. For information on any of these centers, please contact Dr. Enila Cenko, your academic advisor or me.


Technology Expectations

Assignments are to be excel, word-processed and power point. Continuing and regular use of e-mail is expected.


Faculty: Business &Economics.

Department: Economis & Finance.

Grade: Undergraduate.

Majors: Business.

Study Fileds: Accounting, Finance, and Management of Information Systems.

Course Year: 3.

Course Program: ESC.

Scheduele: 12:00-16:00, Wednesday

Instructor: Agim Mamuti, Assoc.Prof.Dr.

Credits: 4

Prerequisite: Managerial Accounting