FROM: Rolland Cooper, ACC 240 Course Coordinator

TO: ACC 240 Faculty FROM: Rolland Cooper, ACC 240 Course Coordinator DATE: August 11, 2008 RE: ACC 240 coverage for fall, 2008.

We will be using the 2nd edition of Fundamentals of Financial Accounting, by Phillips, Libby, Libby in the fall. I am using it for the summer term and finding it to be a very teachable and student-friendly book. If you do not have the book and CD, please let me know. I’ll get you a copy.

Shown below is suggested coverage. It is very similar to the coverage in the previous book. I found that I could cover the questions and mini exercises in class and use the other exercises, problems and cases for assignments. In keeping with our user emphasis, many of the Skills Development Cases use ratio analysis for the financial statements contained in Appendix A (Landry’s Restaurants) and B (Outback Steakhouse). A summary of the ratios from the text is on the next page.

It looks like there is an extra chapter (when compared to the previous book) but this text puts bad debts in a separate chapter (CH 8) instead of presenting it in the Cash, Sales, and Receivables chapter. Thus the “extra” chapter.

I have selected the “Coached Problems” rather than the Group A or Group B Problems. All three problem sets pretty much mirror each other so feel free to use which ones you prefer. The Coached Problems have hints which my students found to be useful so I selected those.

Skills Coached Development Chapter Questions Mini-Exercises Exercises Problems Cases 1 2,3,7,16 4 4 1,2 1,2

2 1,2,11 9,10,11 1,2 1,5

3 3,5,6,7,10 9,10,11,12 22 ,2 1,2

4 1,3,13,15 3,4,5,6,7,8 2 1,2

5 3,4,5,6,7,11,15 9,10,11,12,13 1,2 1,2,5

6 1,3,4,19,20 8,9,10,11,12,13,14,15,16 16,17,23 4 1,2 3 (omit 7 6,9,10 2,4,14 1,2 req.3) 8 1,3,4,5,10 1,2,15 1,2

9 2,4,5,7 2,3 5,15 1 1,2

10 1,3,14 1,2,5 1,2 1,3,4,7,8,10, 11 6,7,8,11 5 1,2,5 12,14 12 1,2,4,7,10,11 1,10,14 4 1,2,5 Three computer projects are required from each student. They are (with suggested due dates in parentheses for your reference): Computer Project #1 – Internet - scavenger hunt of useful accounting sites (weeks 2-3) Computer Project #2 – Excel spreadsheet - financial statements from a trial balance (week 7) Computer Project #3 – Internet and comparative financial analysis task (weeks 12-14) The computer projects can be accessed by you and your students on the web at http://www.computerprojects.info.

Below is a table that shows the ratios introduced in each chapter. The page numbers are for end-of-chapter summaries. Each ratio is presented earlier in the chapter.

Page Chapter Number Ratio 5 216 Debt-to-assets Asset turnover Net profit margin

6 261 Gross profit percentage

7 313 Inventory turnover Days to sell

8 359 Receivables turnover Days to collect

9 408 Fixed asset turnover

10 469 Current ratio Times interest earned

11 516 Earnings per share Return on equity Price earnings

12 568 Quality of income Capital acquisition Cash coverage