Course - Winston-Salem/Forsyth County Schools



Principles of Business and Finance

6200/6600

|Essential Standard# |Unit Titles/Essential Standards and Objective Statement |Local Use |Course |

|Objective # | | |Weight |

|Unit B |Principles of Business | | |

|Essential Standard |Understand the role of finance in business. | |31% |

|4.00 | | | |

|PBF4.01 |Understand financial management. | |10% |

|PBF4.02 |Understand the banking system. | | 9% |

|PBF4.03 |Understand saving and investing options for clients. | |12% |

Essential Standard 4.00 will help students understand financial management in business, the banking system, and saving and investing options for clients. In objective 4.01 students will learn the times when businesses should conduct financial planning and actions performed. In objective 4.02 students will understand how financial institutions are classified and be able to compare services offered by the institutions. Students will learn about common payment services provided by financial institutions. In addition, students will understand how the Federal Reserve System operates. In objective 4.03 students will understand how investors determine the appropriate saving and investing options for them. Students will also learn about factors to consider when evaluating saving and investing options.

UNPACKED CONTENT

I. Businesses address financial questions by regularly doing financial planning. The phases when businesses conduct financial planning are:

A. Start-up

B. Operation

C. Expansion

II. The actions of businesses when doing financial planning are:

A. Developing one or more of the three types of business budgets:

1. Start-up

2. Operating

3. Cash

B. Using financial records to complete financial statements:

1. Balance sheet

2. Income statement

3. Cash flow statement

C. Using financial statement information to make financial decisions based on the main financial performance ratios:

1. Current ratio

2. Debt to equity ratio

3. Return on equity

4. Net income

|INSTRUCTIONAL ACTIVITIES |RELEVANCE TO OBJECTIVE |RESOURCES |

|1 |Business Financial Planning Introduction |Helps students begin to UNDERSTAND |Textbook |

| |Have students read Focus on Real Life on pages 292 in Intro to |(B2) business financial planning | |

| |Business, 6e, Thomson South-Western textbook. | | |

| |Facilitate a discussion using the questions: | | |

| |What kind of financial information is used by businesses? | | |

| |What should businesses do with financial information? | | |

| |What is financial planning? | | |

|2 |Business Financial Planning Reading and PowerPoint Presentation |Helps students UNDERSTAND (B2) |Textbook |

| |Present an overview of business financial planning. |business financial planning | |

| |Facilitate students completing Part A of Business Financial | |Part A of Business Financial |

| |Planning Organizer. Students may obtain information by reading | |Planning Organizer |

| |pages 292-297 in Intro to Business, 6e, Thomson South-Western | | |

| |textbook OR by participating during presentation of PowerPoint | |PowerPoint Presentation 4.01, |

| |Presentation 4.01, slides 1-9. | |slides 1-9 |

|3 |Basic Financial Equation |Helps students UNDERSTAND (B2) how |Profit or Loss Activity |

|[pic] |Have students to complete the Profit or Loss Activity. NOTE: Cut |to determine whether a business | |

| |sheet in half after copying and give one to each student. |will net a profit or loss |Profit or Loss Activity Key |

| |Facilitate a discussion of the results. | | |

|4 |Business Budgets |Helps students UNDERSTAND (B2) why |Grocery Store, Inc. Operating |

| |Review the main parts of the Grocery Store, Inc. Operating Budget|businesses complete budgets and use|Budget Sample |

| |Sample. Point out the main parts of the budget: income and |information from budgets | |

| |expenses. | |Jerry’s Painting Company Cash |

| | | |Budget Sample |

|Instructional Activities continued on the next page. |

|INSTRUCTIONAL ACTIVITIES |RELEVANCCE TO OBJECTIVE |RESOURCES |

| |Review the content of Jerry’s Painting Company Cash Budget Sample| | |

| |with the students. Point out that the receipts represent the | | |

| |actually money received and payments is the actual money paid out| | |

| |during a period. | | |

| |Facilitate a discussion using the questions: | | |

| |How can the businesses use the information on the budgets? | | |

| |What changes related to amount of receipts and expenses are | | |

| |recommended? | | |

|5 |Budgeting for a Business |Helps students UNDERSTAND (B2) how |Grocery Store, Inc. Operating |

|[pic] |Have students enter Grocery Store, Inc. Operating Budget Sample |businesses may complete budgets and|Budget Sample |

| |in a spreadsheet. NOTE: See spreadsheet file for formulas and |use information from budgets | |

| |key. | |Grocery Store, Inc. Operating |

| |In another budget, have the students to increase the income and | |Budget Keys (spreadsheet file) |

| |expenses by 7%. NOTE: See spreadsheet file for formulas and key. | | |

| |In another budget, have the students decrease the income and | | |

| |expenses by 1.5%. NOTE: See spreadsheet file for formulas and | | |

| |key. | | |

| |Have students to write a paragraph discussing how the increase | | |

| |could impact future budgets. | | |

| |Facilitate students sharing their paragraph responses with the | | |

| |class. Determine if students understand that budgets are used to | | |

| |assist with financial needs using projected income and expenses. | | |

|Instructional Activities continued on the next page. |

|INSTRUCTIONAL ACTIVITIES |RELEVANCE TO OBJECTIVE |RESOURCES |

|6 |Financial Records and Statements Introduction |Helps students begin to UNDERSTAND |Textbook |

| |Have students read Focus on Real Life on pages 298 in Intro to |(B2) how businesses use financial | |

| |Business, 6e, Thomson South-Western textbook. |records and statements | |

| |Facilitate a discussion using the questions: | | |

| |How should the business owner handle the possibility of being | | |

| |short on cash? | | |

| |What are financial records? | | |

| |What kind of financial records could help the owner resolve the | | |

| |concern of making a building payment? | | |

|7 |Financial Records and Statements Reading and PowerPoint |Helps students UNDERSTAND (B2) how |Textbook |

| |Presentation |businesses use financial records | |

| |Present an overview of how businesses use financial records and |and statements |Part B of Business Financial |

| |statements. | |Planning Organizer |

| |Facilitate students completing Part B of Business Financial | | |

| |Planning Organizer. Students may obtain information by reading | |PowerPoint Presentation 4.01, |

| |pages 298-302 in Intro to Business, 6e, Thomson South-Western | |slides 10-12 |

| |textbook OR by participating during presentation of PowerPoint | | |

| |Presentation 4.01, slides 10-12. | | |

|8 |Things I Own and Things I Owe |Helps students begin to UNDERSTAND |Things I Own and Things I Owe |

| |Assign students to groups of three. |(B2) the elements of a balance |Activity |

| |Facilitate groups completing Things I Own and Things I Owe |sheet | |

| |Activity. NOTE: Use Work as a Group Activity on page 299 in Intro | |Textbook |

| |to Business, 6e, Thomson South-Western textbook as a guide. | | |

| |Facilitate a discussion about if it matters which column is | | |

| |greater. | | |

|Instructional Activities continued on the next page. |

|INSTRUCTIONAL ACTIVITIES |RELEVANCCE TO OBJECTIVE |RESOURCES |

|9 |Financial Statements |Helps students UNDERSTAND (B2) the |Financial Statements Template |

|[pic] |Facilitate students completing a personal balance sheet and |content of financial statements and|(spreadsheet file) |

| |income statement using the Financial Statements Template. NOTE: |how to use them for financial | |

| |Use Assessment Accounting Activity on page 302 in Intro to |planning | |

| |Business, 6e, Thomson South-Western textbook as a guide. | | |

| |Facilitate a discussion using the questions: | | |

| |Is anyone financially successful? If so, explain how. | | |

| |What adjustments should one make to their own assets and | | |

| |liabilities? | | |

| |What adjustments should anyone make to their income and expenses?| | |

| |Facilitate students decreasing each of their assets by 6 percent | | |

| |and increasing each of their liabilities by 3 percent using the | | |

| |Financial Statements Template. | | |

| |Facilitate students increasing one of their income sources by 6 | | |

| |percent and increasing their expenses by 12 percent using the | | |

| |Financial Statements Template. | | |

| |Facilitate a discussion about what is the effect of each | | |

| |situation of increase or decrease. | | |

|Instructional Activities continued on the next page. |

|INSTRUCTIONAL ACTIVITIES |RELEVANCE TO OBJECTIVE |RESOURCES |

|10 |Financial Information for Making Financial Decisions Introduction|Helps students begin to UNDERSTAND |Textbook |

| |Have students read Focus on Real Life on pages 308 in Intro to |(B2) the importance of businesses | |

| |Business, 6e, Thomson South-Western textbook. |using information from financial | |

| |Facilitate a discussion using the questions: |statements in order to make | |

| |What kind of financial decisions can be made using information |financial decisions | |

| |from financial statements? | | |

| |After completing your personal balance sheet and income | | |

| |statement, what kind of adjustment will you make to your assets, | | |

| |liabilities, owner’s equity, income, and spending? | | |

|11 |Financial Information for Making Financial Decisions Reading and |Helps students UNDERSTAND (B2) the |Textbook |

| |PowerPoint Presentation |importance of businesses using | |

| |Present an overview of financial information use by businesses. |information from financial |Financial Performance Organizer |

| |Facilitate students completing Financial Performance Organizer. |statements in order to make | |

| |Students may obtain information by reading pages 308-311 in Intro|financial decisions |PowerPoint Presentation 4.01, |

| |to Business, 6e, Thomson South-Western textbook OR by | |slides 13-18 |

| |participating during presentation of PowerPoint Presentation | | |

| |4.01, slides 13-18. | | |

|12 |Financial Ratios |Help students UNDERSTAND (B2) how |Clothing Store, Inc. Financial |

|[pic] |Display the Clothing Store, Inc. Financial Statements. |businesses use financial |Statements and Ratio Key |

| |Facilitate students calculating the financial performance ratios.|information to make financial |(spreadsheet file) |

| | |decisions | |

|Instructional Activities continued on the next page. |

|INSTRUCTIONAL ACTIVITIES |RELEVANCE TO OBJECTIVE |RESOURCES |

|13 |Real-World Ratios |Helps students COMPARE (B2) |Real-World Ratios Activity |

|[pic] |Facilitate students completing Real-World Ratios Activity. |business financial ratios from | |

| |Facilitate students sharing their results. |different companies to determine | |

| | |the comparative financial health of| |

| | |the business | |

|14 |Supplemental |Helps students UNDERSTAND (B2) |Textbook |

| |Accounting |career options related to | |

| |Facilitate a discussion about the importance of math, |accounting |Guest speaker(s) |

| |understanding financial statements, and technology skills in | | |

| |managing or owning a business. | | |

| |Ask students if their career plans include working in an industry| | |

| |that will allow them to manage the financial records of | | |

| |businesses in order for decisions to be made. | | |

| |Introduce the industry of Accounting. | | |

| |Have students read Planning a Career in … Accounting Economics | | |

| |page 291 in Intro to Business, 6e, Thomson South-Western | | |

| |textbook. | | |

| |Invite guest speakers representing the accounting field. | | |

|-Numeracy Strategy: To make a Math-to-Life Connection is to see a relationship between a math concept and a real-life situation. Finding |

|math-to-life connections greatly increase the relevance of new information and skills being learned. |

Instructional Support Material

|Textbook |Website |

|Intro to Business, 6e, Thomson South-Western |None |

|Handouts (included) |Other |

|Business Financial Planning Organizer |PowerPoint Presentation 4.01 (separate file) |

|Profit or Loss Activity |Grocery Store, Inc. Operating Budget Keys (separate and spreadsheet |

|Profit or Loss Activity Key |file) |

|Grocery Store, Inc. Operating Budget Sample |Things I Own and Things I Owe Activity |

|Jerry’s Painting Company Cash Budget Sample |Financial Statements Template (separate and spreadsheet file) |

|Financial Performance Organizer |Clothing Store, Inc. Financial Statements and Ratio Key (separate and |

|Real-World Ratios Activity |spreadsheet file) |

| |Assessment Prototypes (included) |

| |Guest speakers (Supplemental) |

Name: ______________________ Class: _______ Date: _______

Business Financial Planning Organizer

Financial planning includes an organization evaluating it current financial position, setting financial goals, and implementing activities and obtaining resources to reach established financial goals.

Part A

Directions: In the provided table, provide information about when businesses conduct financial planning.

|Phases |Financial Planning |

|Start-up | |

| | |

| | |

| | |

| | |

| | |

| | |

|Operation | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

|Expansion | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

Basic financial equation

_____________________ - ____________________ = ________________________

Business Financial Planning Organizer: Part A Continued

|Types of Business Budgets |

|Type |When it is used |

|Start-up | |

| | |

| | |

| | |

| | |

| | |

|Operating | |

| | |

| | |

| | |

| | |

| | |

|Cash | |

| | |

| | |

| | |

| | |

| | |

List the four steps of completing a budget:

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

Business Financial Planning Organizer: Part B

What is the purpose of financial records? ____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

List the financial records used by businesses:

___________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________

______________________________________________________________________

____________________________________________________________________________________________________________________________________________

What are assets? _______________________________________________________

What are liabilities? ______________________________________________________

What is owner’s equity? __________________________________________________

What are financial statements?

______________________________________________________________________

______________________________________________________________________

What is the difference between a balance sheet and an income statement?

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

____________________________________________________________________________________________________________________________________________

Name: ______________________ Class: _______ Date: _______

Profit or Loss Activity

Directions: Determine whether the provided businesses will net a profit or loss.

Business 1

Taylor’s Grocery Store revenue for this year is $91,750. The store manager noticed an increase of $3,000 in the store’s expenses. She has determined that the total expenses equal to $81,000? Will this business net a profit or loss? _______

How much of a profit or loss? ________

Business 2

Harry’s Shoe Store has noticed a significant increase of revenue of $123,000. The manager has also determined that the total expenses equal to $128,000. Will this business net a profit or loss? _______ How much of a profit or loss? ________

Business 3

Malinda’s Auto Dealership of Imported Cars made $895,000 in revenue. The manager has determined that the total expenses equal to $598,000. Will this business net a profit or loss? _______ How much of a profit or loss? ________

Name: ______________________ Class: _______ Date: _______

Profit or Loss Activity

Directions: Determine whether the provided businesses will net a profit or loss.

Business 1

Taylor’s Grocery Store revenue for this year is $91,750. The store manager noticed an increase of $3,000 in the store’s expenses. She has determined that the total expenses equal to $81,000? Will this business net a profit or loss? _______

How much of a profit or loss? ________

Business 2

Harry’s Shoe Store has noticed a significant increase of revenue of $123,000. The manager has also determined that the total expenses equal to $128,000. Will this business net a profit or loss? _______ How much of a profit or loss? ________

Business 3

Malinda’s Auto Dealership of Imported Cars made $895,000 in revenue. The manager has determined that the total expenses equal to $598,000. Will this business net a profit or loss? _______ How much of a profit or loss? ________

Profit or Loss Activity KEY

Directions: Determine whether the provided businesses will net a profit or loss.

Part A

Determine whether the provided businesses will net a profit or loss.

Business 1

Taylor’s Grocery Store revenue for this year is $91,750. The store manager noticed an increase of $3,000 in the store’s expenses. She has determined that the total expenses equal to $81,000? Will this business net a profit or loss? Profit

How much of a profit or loss? $10,750

Business 2

Harry’s Shoe Store has noticed a significant increase of revenue of $123,000. The manager has also determined that the total expenses equal to $128,000. Will this business net a profit or loss? Loss How much of a profit or loss? $5,000

Business 3

Malinda’s Auto Dealership of Imported Cars made $895,000 in revenue. The manager has determined that the total expenses equal to $598,000. Will this business net a profit or loss? Profit How much of a profit or loss? $297,000

Grocery Store, Inc. Operation Budget Sample

Business Profile: Grocery Store, Inc. provides a variety of grocery and household goods. The store usually has sales income and various expenses. See provided operating budget for sample income and expenses.

|Grocery Store, Inc. |

|January 1, xxxx to December 31, xxxx |

|Category |Actual |Budget |Difference |

|[pic] |[pic] |[pic] |[pic] |

|Income |  |

|Net Sales |558,400 |400,000 |158,400 |

| | | | |

|Total Income |558,400 |400,000 |158,400 |

|  |

|Expenses |  |  |  |

|Salaries |189,250 |145,000 |44,250 |

|Utilities |4,100 |3,900 |200 |

|Rent |13,000 |13,000 |0 |

|Insurance |13,900 |13,900 |0 |

|Advertising |3,650 |3,000 |650 |

|Telephone |1,700 |1,000 |700 |

|Dues & Subscriptions |900 |1,000 |(100) |

|Interest Paid |1,140 |1,100 |40 |

|Repairs & Maintenance |11,250 |11,000 |250 |

|Taxes |990 |900 |90 |

|Total Expenses |239,880 |193,800 |46,080 |

|  | |

|Net Income |$318,520 |$206,200 |$112,320 |

|Jerry’s Painting Company Cash Budget Sample |

|Business Profile: Jerry's Painting Company paints home and business interiors and exteriors. The company usually has interior and exterior sales |

|cash receipts. Also, the company usually has various expenses. See provided cash budget for sample cash receipts and expenses. |

| |

| |

|Jerry's Painting Company |

|Cash Budget |

|For First Quarter, 20____ |

|DESCRIPTION |Jan |Feb |Mar |Total |

|Receipts: | | | | |

|Interior Sales |$7,200.00 |$7,500.00 |$4,400.00 |$19,100.00 |

|Exterior Sales |$2,400.00 |$2,700.00 |$6,800.00 |$11,900.00 |

|Total Receipts |$9,600.00 |$10,200.00 |$11,200.00 |$31,000.00 |

| | | | | |

|Payments: | | | | |

|Wages |$5,800.00 |$5,800.00 |$6,500.00 |$18,100.00 |

|Rent |$1,200.00 |$1,200.00 |$1,200.00 |$3,600.00 |

|Utilities |$210.00 |$210.00 |$150.00 |$570.00 |

|Supplies |$300.00 |$300.00 |$500.00 |$1,100.00 |

|Office Expenses |$90.00 |$90.00 |$100.00 |$280.00 |

|Repairs |$200.00 |$200.00 |$550.00 |$950.00 |

|Insurance |$375.00 |$375.00 |$375.00 |$1,125.00 |

|Taxes |$1,160.00 |$1,160.00 |$1,300.00 |$3,620.00 |

|Equipment | ________ | _________ | $750.00 | $750.00 |

|Total Payments |$9,335.00 |$9,335.00 |$11,425.00 |$30,095.00 |

|Balance | $265.00 | $865.00 | ($225.00) | $905.00 |

Name: ______________________ Class: _______ Date: _______

Things I Own and Things I Owe Activity

Directions: First, take turns within your group and list personal assets and liabilities, and then the value of each item. Second, review the list and divide it into current and long-term assets and liabilities. Third, total the value of the two columns and determine which one is greater.

|Assets Value |Liabilities Value |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

|Total | |Total | |

Name: ______________________ Class: _______ Date: _______

Financial Performance Organizer

Directions: Provide information about the main types of financial ratios.

Financial performance ratios are comparisons using a company’s financial data to determine how well a business is performing.

|Types of financial |How the ratio is calculated |Why is the ratio used |

|ratios | | |

|Current |current assets | |

| |current liabilities | |

| | | |

| | | |

| | | |

| | | |

|Debt to Equity |total liabilities | |

| |owner’s equity | |

| | | |

| | | |

| | | |

| | | |

|Return on Equity |net profit | |

| |owner’s equity | |

| | | |

| | | |

| | | |

| | | |

|Net Income |total sales | |

| |net income | |

| | | |

| | | |

| | | |

Name: ______________________ Class: _______ Date: _______

Real-World Ratios Activity

Directions: Use the Internet to research and calculate financial statement ratios for the companies listed. Then, use your results to answer the provided questions.

| |Bank of America (BAC) |Wells Fargo & Co. (WFC) |JPMorgan Chase & Co. |Wal-Mart |Microsoft (MSFT) |

| | | |(JPM) |(WMT) | |

|Current Ratio: | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

|Debt to Equity | | | | | |

|Ratio: | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

|Return on Equity | | | | | |

|Ratio: | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

|Net Income Ratio: | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

1. For each of the four ratios, circle the company that has the ‘best’ ratio.

2. Of the three financial institutions, which appears to be performing the best? Explain why.

3. Overall, which company appears to be performing the best? If it is different than #1, explain why.

ASSESSMENT PROTOTYPES

Note: These assessment prototypes are examples of the types of items included in the item bank. All items are comparable to the cognitive process of the understand verb. Questions require students to demonstrate that they understand the content. Assessment prototypes will not be used on the secured test, but questions in similar formats will be used.

Tami projected from where funds would come to operate her business until a profit is made. This is an example of what kind of financial planning?

A. Expansion

B. Personal

C. Operation

D. Start-up

ANSWER: D

Tom can find the revenue and expenses of his business at the end of year on which type of financial statement?

A. A balance sheet.

B. A budget.

C. An income statement.

D. A statement of owner’s equity.

ANSWER: C

Amy’s business collected $398,000 in sales last year and paid $103,000 in expenses. Which is the net income/net loss amount for the business?

A. $25,000 net income

B. $95,000 net loss

C. $295,000 net income

D. $9,000 net loss

ANSWER: C

Which financial ratio will John use if he wants to determine the amount of sales needed for each dollar?

A. Current

B. Debt to equity

C. Net income

D. Return on equity

ANSWER: C[pic]

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download