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Affiliated with the University of Western Ontario, London, Canada N6A 2M3

2007/2008 ASSIGNMENT SHEET FOR FINANCE


BUSINESS 020-571
John Siambanopoulos, Monday – Wednesday 4:30 – 6:00

NOTE: As we work through the theory, the noted exercise for each class is to be completed
before that class, for discussion during class unless otherwise noted (in some classes, the
exercises will be done in class). Any handouts (if any were given out) will be available on-
line for you to print or outside my office door, DLH-222, as noted.

Monday, September 10

Lecture: Introduction to Business 020


: The Statement of Earnings
Read : Introduction to the Case Method, text, page 1 – 8
: Introduction to Financial Statements, text, pages 9 – 16

Wednesday, September 12

Lecture: The Balance Sheet


The Statement of Retained Earnings
Read : Introduction to Financial Statements, text, pages 16 – 31
To be done for today:
1. Exercise 2, Buckner Department Store Ltd. text, page 40
2. Exercise 2, J. Crawford Retail Sales, Inc. text, page 40

Monday, September 17

Lecture: Determining Cost of Goods Sold


Integrating the Statement of Earnings and Balance Sheet
To be done for today:
1. Paul Webster Retail Florist, text, page 43
2. Thomas Hardware Store Ltd. text, page 43

NOTE: A take-home quiz will be given out today to practice Financial Statements to be
handed in next Monday.

2007-2008 jsiamba2@uwo.ca Business 020 571


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Wednesday, September 19

To be done for today: Put the I/S, B/S and SRE together for:
1. Kelly Automotive Parts Wholesaler Inc. (casebook)
2. Glenn’s Glue Stick (casebook)
3. Lisa’s Waterbed Emporium (casebook) (if time is available)

Financial Management

Special Note from John: This section is very heavy. TRY to look over the material and do the
readings before the class in which we discuss the topics. It will make your life much easier.

Monday, September 24 – Take-home test due today!!!

Lecture: Welcoming Finance Into Our Class


Statement of Cash Flow (SCF) (slides)
Ratios: Basic Training (slides)
Read: Note on the Statement of Cash Flow (casebook)
Introduction to Financial Management, text, pages 63-104
To be done for today
1. In-class exercise and general lecture – No preparation required but doing the reading (text
and slides) WILL help. Note: We will not be covering how the Statement of Cash Flow is
put together in class. The procedure is in the Case Package. We will only look at its
interpretation. You will be able to assess how a company uses their money to run the
business in relation to cash from a) operating, b) financing and c) investing activities. You
will be evaluated on how well you think on the exam. ☺

Wednesday, September 26

Read : Introduction to Financial Management, pp. 63 – 84


We’ll be walking through the material and exercise today. Do the reading and attempt the exercise.
To be done for today
1. Do Exercise 2, and calculate the selected ratios for ABC Distribution Co. Ltd., pages 107 – 109 using
John’s Template on his website.
2. Along with the Exercise, John will also be bringing in examples from real companies for interpretation.

Monday, October 1

Lecture: Preparing Projected Statements: Making Assumptions and the “Plug” (slides)
: Term of Loan and Seasonality (slides)
Read : Introduction to Financial Management, page 84 – 92
John will be walking through the material and exercise today. Try not to miss this class.
To be done for today
1. Exercises 1, 2, 3, DEF Co. Ltd., page 110, use the Bank Loan as the “plug” figure.

2007-2008 jsiamba2@uwo.ca Business 020 571


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Wednesday, October 3
Topic: Analyzing Ratios, SCF and Preparing Projected Statements
To be done for today:
1. Cases: Gardiner Wholesalers A & B. Check the website for the learning aids.
a. Analyze the cashflow statement for each firm. What is happening?
b. Analyze the ratios for each firm. Comment on each firm.
c. Prepare a set of Projected Financial Statements for Elegance Jewellers for the
year ended June 30, 2003. Use information from both Gardiner A & B.

Monday, October 8

Thanksgiving – No Class
Wednesday, October 10

Lecture: Determining Financial Requirements for a company


4 Cs of Credit - Capacity to Repay, Collateral, Character, Conditions (slides)
Read : Introduction to Financial Management, pages 96 - 97.
Case : Maple Leaf Hardware, text, page 161.
To be done for today
1. As Stuart Foreman, assess the financial position of Maple Leaf Hardware Ltd. given the
Statement of Cash Flow (casebook) and financial ratio information
2. Prepare projected financial statements for the years ending as of December 31, 2002 and 2003.
3. We will most likely begin the topic of the 4 Cs of Credit and push part of the projections to the
next class. We’ll probably get through the projected income statements today so try to have
those done at the very least. ☺

Monday, October 15

Case : Maple Leaf Hardware, text, page 161. (continued from last day)
To be done for today
1. How much money does Maple Leaf need?
2. Discuss the appropriateness of the term of the loan and any seasonality effects on the
company’s financing requirements.
3. Analyze the 4 Cs. Should the loan request be granted? Why or why not?

Wednesday, October 17

Case : Dr. Jay Stephenson, text, page 112


To be done for today
1. Analyze the Statement of Cash Flow (casebook) and financial ratios.
2. Prepare a set of projected statements for the years ended December 31, 2001 and 2002.

2007-2008 jsiamba2@uwo.ca Business 020 571


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Monday, October 22

Case : Dr. Jay Stephenson, text, page 161


To be done for today
1. Analyze the 4 Cs for the company and determine how this will affect your decision.
2. Would you give the loan? Why or why not? How much would you lend?

Wednesday, October 24

Case : Lawsons, text, page 154 (Note: Age of Payables is 17 days for non-overdue accounts)
To be done for today
1. Analyze the Statement of Cash Flow (casebook).
2. Analyze and interpret the selected financial ratios
3. Prepare a set of projected statements for the years ending January 31, 2004 and January 31, 2005.

Monday, October 29

Case : Lawsons
To be done for today:
1 Interpret the required financing amount. What is your PLUG? What adjustment needs to be made
for seasonality?
2 Conduct a sensitivity analysis on days of inventory, A/R and A/P.
3 Assess the capacity to repay, collateral character and business conditions for Lawsons
4. What alternatives should you consider? What is your decision? Provide support for your
reasoning.

Wednesday, October 31

Topics : Comprehensive case and review


Case : Studio Tessier Ltée, text, page 194 (this was a former Finance test)
To be done for today:
1. As Monique Lavoie, make whatever analysis and decisions you deem appropriate
2. Bring any outstanding questions from this section on any topic. Today we’ll also discuss some
exam writing strategies.

Extra Cases for Practice: GE Capital (text)


Miami Car Care Centre (casebook)
These cases may be handed in for practice. My policy is that “if you make the effort, so will I”. Do them
in a four hour sitting (just like the exam) and hand them in to me, if you have the time, desire, need etc. I
will mark them as an “exam”, meet with you and give you feedback. There are absolutely no marks for
these extra cases whatsoever. They are for your own benefit and completely voluntary.

The Finance Exam is on Saturday, November 3, from 1:00 to 5:00 pm


Location to be announced in class.

2007-2008 jsiamba2@uwo.ca Business 020 571