The Home Depot, Inc. (pp.265 - 288)
1. Evaluate Home Depots business strategy. Do you think it is a viable strategy in the long
2. Analyze Home Depots financial performance during the fiscal years 1983 1985.
Compare Home Depots
Accounting for the iPhone at Apple Inc. (pp. 4-47 - 4-64)
1. Briefly provide the facts and background surrounding the iPhone at Apple Inc.
2. Compared to the typical point-of-sale method, what are the likely effects on revenue,
Financial Reporting Problems at Molex, Inc. (A) (pp. 63 - 77)
1. What was the financial reporting problem at Molex? How would the correction of the
problem be recorded in Molexs financial statements?
2. What is the role of top manage
Harnischfeger Corporation (pp. 79 - 103)
1. Briefly provide the facts and background surrounding Harnischfeger Corporation.
2. Identify all the accounting policy changes and accounting estimates that Harnischfeger made
New Century Financial Corporation (pp. 1-15 - 1-41)
1. Briefly provide the facts and background surrounding New Century Financial Corporation.
2. What are the main issues/allegations?
3. During their corporate existence, what w
The Role of Capital Market Intermediaries in the Dot-Com Crash of 2000 (pp. 319 - 343)
1. Briefly provide the facts and background surrounding the dot-com crash.
2. What is the intended role of each of the institutions and inte
VIZIO, Inc. (pp. 2-27 - 2-52)
1. Briefly provide the facts and background surrounding VIZIO, Inc.
2. Why is the manufacturing of flat panel TVs migrating to different locations around the world?
3. Who benefits from the globali
The Fall of Enron (pp. 3-21 - 3-40)
1. Briefly provide the facts and background surrounding The Fall of Enron.
2. What was the corporate environment and culture of the company?
3. What red flags were there for analysts, auditor
AEM 3520 Spring Term 2016
Draft as of 1/19/2016
AEM 3520 Section 001
Financial Statement Analysis
Spring Term 2016
John W. McKinley, JD,
LLM, CPA, CGMA
Financial Statement Analysis Cases, 10:10AM
Chapter 1: New Century Financial Corporation
Briefly provide the facts and background surrounding New Century Financial
o Industry: Subprime mortgages were on the rise: origination
1. Lets say a customer ys for a TV with a credit card. What would this look like under the
cash-basis vs. accrual accounting.
o Recognize expenses when earned or occurred.
o Under the accrual basis of accounting, expenses are matched with the rela
Financial Statement Analysis Midterm Study Manual
Financial Reporting in Capital Markets
Information Intermediaries: Enhance credibility (auditors) or analyze information (rating
Financial Intermediaries: Rely on information in FSA t
Financial Statement Analysis
Business Analysis & Valuation
Chapter 2: Strategy Analysis
The Importance of Strategy Analysis
Strategy drives the actions of an organization.
Studying a firms strategy provides:
An understanding of what driv