Suggested Schedule for Using Red Company at the End of an Introductory Financial Accounting Course
The Red Company package, including-textbook, software, videos, homework exercises, and Annual Report Projects, is a completely integrated teaching approach. Due to the easy-to-read and easy-to-understand Red Company material, RC can effectively be used in an entry level course as a self-study with little to no lecturing from the instructor. The material, which includes the teaching videos, is also effectively used in an on-line course.
Week 1
Introduce Red Company to the Students and Discuss:
- Software installation
- The interactive learning process
- Necessity of running the software while reading the Red Company book
- Understanding not memorizing
- Necessity of being able to work the homework problems without extensive look-back into the book or software
Chapter 1 – Introduction to Red Company's Simulation Model
- Watch the 01 - Chapter 1 - Introduction to Red Company's Simulation Model Video
- Read pages 1 to 6 (Introduction to Red Company's Simulation Model)
- Complete homework exercises 1-1 through 1-4
Chapter 2 – Vertical Analysis and Horizontal Analysis
- Watch the 02a - Chapter 2 – Vertical Analysis Video
- Read pages 9 to 13 (Vertical Analysis)
- Watch the 02b - Chapter 2 – Horizontal Analysis Video
- Read pages 13 to 17 (Horizontal Analysis)
- Complete homework exercises 2-1 through 2-4
Chapter 3 – DuPont Analysis
- Watch the 03 - Chapter 3 - DuPont Analysis Video
- Read pages 21-31 (DuPont Analysis)
- Complete homework exercises 3-1 through 3-6
Week 2
Chapter 4 – Drilling-Down Into the DuPont Analysis
- Watch the 04a - Chapter 4 – Profitability Video
- Read pages 35-40 (Profitability Indicators)
- Watch the 04b - Chapter 4 – Efficiency Video
- Read pages 40-52 (Efficiency Indicators)
- Watch the 04c - Chapter 4 – Leverage Video
- Read pages 53-57 (Leverage Indicators)
- Complete homework exercises 4-1 through 4-10
Chapter 5 – Liquidity Indicators - Cash Flow Indicators - Equity Investor Indicators
- Watch the 05a - Chapter 5 – Liquidity Video
- Read pages 63-66 (Liquidity Indicators)
- Watch the 05b - Chapter 5 – Statement of Cash Flows Video
- Read pages 66-71 (Statement of Cash Flows Indicators)
- Watch the 05c - Chapter 5 – Equity Investor Indicators Video
- Read pages 72-79 (Equity Investor Indicators)
- Complete homework exercises 5-1 through 5-9
Annual Report Project (ARP) Detailed directions for: Assigning, Receiving, and Grading the project are provided in the Instructor support material.
- Discuss and assign the project
- Provide to the students instructions for submitting their project files
- Set the due date for project file submission
- Watch video 06 – Annual Report Project Video 8e for project instructions and tips.