Develops students' competence in analyzing financial statements and using financial information to make investment decisions, both equity and debt. The primary thrust of the course is aimed at equity investments. Students learn a five step process of analysis for equity investments: (1) An examination of the firm's industry, markets and strategy, (2) An evaluation of the firm's accounting policies and their impact on the financial reports, (3) Applying fundamental analysis to assess financial strengths and weaknesses, (4) Forecasting future earnings and cash flows, and (5) Applying valuation models to assess the current price. A comparable process for lending decisions is then developed. Prerequisite: ACCTG 501. Corequisite: FIN 501 or 503.