IWCC Week 3 Financial Statement Analysis Project

WEEK THREE:  The assignments and exams for Chapters Seventeen and Eighteen should be completed this week.

Chapter Seventeen covers the topic of Financial Statement Analysis.  The main focus will be on using horizontal analysis, vertical analysis and ratio analysis.  Most of the ratios discussed will be familiar as they have been covered in previous chapters.  Chapter Seventeen brings all of the ratios together and shows how they can be used in forming a more comprehensive analysis of a company’s position. 

After completing this chapter, you should complete the Financial Statement Analysis Project that will give you some additional work on the analysis methods discussed in the chapter.

Chapter Eighteen is your introduction to Managerial Accounting, sometimes referred to as Cost Accounting.  Read the chapter carefully and note the distinction between Financial Accounting and Managerial Accounting.  Up to now, almost everything we have covered in Principles of Accounting I and II has been considered Financial Accounting.  We will now change our focus and begin discussing the accounting undertaken for managerial decisions.  As we will primarily be discussing managerial decision making in regards to manufacturing operations, pay particular attention to the presentation of the Cost of Goods Manufactured Statement and the discussion of the inventory accounts and flow of goods through those accounts.

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