Lesson Plans 1-6 & Resources

LP1 – Lesson Plan One

Title Introduction to Financial Management No. Students 12

Overview

This lesson will be the first one back from the holidays. It will introduce

students to what financial management incorporates through the introduction

of some relevant terms.

Topics

Covered

Introduction to Financial Management

Financial Management Terms

Year Level 11 Duration 70 min

Subject BOM Unit Financial Management

Learning

Outcomes

At the end of the lesson, students will be able to:

Explain what Financial Management involves

recall Financial Management Terms

Materials

Required

Stimulus Question sheet, Definitions of Financial Management sheets,

Financial Term cards, Interactive white board, laptop, USB of Resources for

Unit

Time Teacher Activity Resource

13.50

13.55

14.15

Welcome students

Ask about holidays. Have 5 min at start of lesson about „them‟.

Then time to learn!

Introduce Financial Management

What do you already know about FM?

What does it incorporate?

Read Intro Chapter as class

Definitions of Financial Management Terms

Display Definitions of Financial Management Terms on

interactive white and have students copy them into their

books.

Text Book Kenman, 2006 pg 204 Laptop, Interactive Whiteboard, Definitions File


14.30

15.00

Accounting term charades

Each student of the class is given a term on a card. They are

to show no one what term they have!

Individually, they are to make a few brief notes in their book

defining the term they have in a short paragraph without

using the term itself.

One at a time each student will go out the front and read their

explanation of their term. The seated students are to write

the name of the student and what term they think they have.

After each student has defined their term, call on each

student to tell the class what term they had. Have the class

go through a partners result and tally up how many they got

right.

In the case of a tie and there is enough time, or the extra time at the

end; a variation of game can be the teacher/students reading out

term definitions with quick draw buzzing in. Giving a point to the

fastest student to know the correct answer.

Homework is to have all this terms copied into your work book.

Cut up list of Terms

LP2 – Lesson Plan Two

Title Applying the process, Importance & Objectives

No. Students 12

Overview

Revision of terms is conducted.

This lesson has the students „unknowingly‟ apply the basic process of financial

management to a holiday they would like to go on.

The importance of financial management is explained. The objectives of

financial management are introduced and defined. The realisation that the 4

objective are not always compatible is made. Students apply their new

understandings to case studies.

Topics

Covered

Sequence of action in financial information system

Importance of financial management

Objectives of financial management

Apply understanding to case study



Learning

Outcomes

At the end of this lesson, students will be able to:

Apply the sequence of action in a financial information systems to a

range of situations

Identify the importance of financial management

Identify the objectives of financial management

Materials

Required

Stimulus questions sheet, Importance of financial management hand out,

objectives of financial management hand out, Interactive white board, laptop,

USB of Resources for Unit


11.25

11.40 12.05 12.22 12.35

Revision of keys terms from last week.

Teacher reads definitions out, students are to list terms.

To increase difficulty – teacher reads term and students define

Stimulus Questions

Display the questions on the interactive whiteboard. Have

them write all questions down first and then answer it them.

After all questions have been answered discus answers as a

class.

„Walk‟ through „sequence of actions in financial information system‟ file. Ask for why students think financial management is important? From this can we determine what the objectives of financial management might be? Provide „importance‟ and „objective‟ hand out. Walk through it as a class on interactive whiteboard Begin to apply knowledge to case study hand out by discussing possible answers as a class. For homework attempt to answer all the questions of the case study.

List of terms from last lesson Laptop, Interactive Whiteboard,, Stimulus Question File, OHT as backup Laptop, Interactive Whiteboard, Sequence of actions, Importance and objectives File Case study handout

LP3 – Lesson Plan Three

Title Sources of Finance No. Students 12

Overview

Review homework, hand in homework sheet.

This lesson, students will learn about the two sources of finance; debt & equity.

Financial Decisions making will be introduced in relation to profit distribution

and types of loans. Students will evaluate the position of Mr Birds Organisation

(case study) making recommendations of action that have been justified

through current knowledge of financial management.

Prepare Questions for Guest Speaker - Financial Planner at Local

Commonwealth Bank

Topics

Covered

Sources of Finance; Debt & Equity

Profit Distribution



Learning

Outcomes


Understand the dis/advantages of different sources of finance

elaborating on judgements arguing a point

Apply these understandings in order to analysis, evaluate and forecast

outcomes

Materials

Required Text Book, Interactive white board, laptop, USB of Resources for Unit


13.50 14.00 14.07 14.30 14.15 15.00

Work through case study homework task as class. Hand homework in to teacher. Introduce Sources of Finance Divide class into and have each side prepare points for a debate supporting either Debt/Equity as a „better‟ source of finance. Presenting points to class as a group. In pairs read the newspaper article about Titled “$200,000 bread-and-butter job” and use the Case Study to Answer Questions 1-4. You will need to rationalise you recommendations to the class in a 5min presentation. The presentation will task place on Friday. Prepare Questions you would like to ask Mr Smith, a Financial Planner with the commonwealth bank, for next lesson. It may be a good idea to ask general questions about information you could presentation (hint)

Text Book Kenman, 2006 pg 190 “Mr Bird‟s” Case Study

LP4 – Lesson Plan Four

Title Sources of Finance No. Students 12

Overview

Pool Homework questions for Guest Speaker, pick most appropriate ones as

class.

Guest Speaker Gives presentation and answers questions on Sources of

Finance and Financial Management.

Work on Presentation

Topics

Covered Sources on Finance, real world applications



Learning

Outcomes

At the end of the lesson, students will be able to:

Elaborate on how sources of finance can be used in a range of

situation

Create links between the text and local, nation, global application of

knowledge

Materials

Required

Guest Speaker, PowerPoint, Projector, Interactive white board, laptop, USB

of Resources for Unit


13.50

13.58

14.25

Collect student questions for Guest Speaker and write them on the

white board. Have class chose 4/5 they would most liked answered.

Welcome Guest Speaker, Mr Smith, Financial Planner for the

Commonwealth Bank who also has a daughter at the school.

Mr Smith delivers presentation on Sources on Finance. Students take

notes during presentation.

Class has those nominated students ask the questions as chosen by the class to the Guest Speaker

Whiteboard Laptop, PowerPoint, Projector


14.30

15.00

Thank Mr Smith and the Commonwealth for his time Students are given time to work on outline of their presentation in computer lab next door

Computer Lab

LP5 – Lesson Plan Five

Title Investigating positions of financial management

No. Students 12

Overview

Students will be using computer labs to compete a soft copy of a work sheet

that investigates real organisations and advertised positions relating to financial

management.

Students will be required to use Microsoft word, the internet, an employment

search engine, as well as previous understandings in order to formulate

answers to the questions provided.

Topics

Covered

Organisations use of financial management

Employment opportunities in relation to financial management



Learning

Outcomes


Evaluate the alternate amounts of emphasis different organisations

give financial management

Distinguish employment opportunities relating to financial management

Materials

Required

Computer Lab, Soft Copy of Work sheet on school database, Net Nanny, USB

of Resources for Unit


11.25

12.35

Meet students at Computer Lab Give instructions on how to access Questions sheet for lesson “You are to answer all the questions (1-7) individually. Ensure you

are saving your document as you go. Once you have completed the

questions format the document so that it is clear and easy to read the

information.

After completing this sheet you may continue working on your

Presentation, this is the last chance you will be give to work on your

presentation as it is due at the beginning of our next lesson.”

Soft copy of Work Sheet for lesson on school database

LP6 – Lesson Plan Six

Title Presentations Break Even Analysis

No. Students 12

Overview

In pairs students will give their presentations they have prepared over the week

making recommendations and conclusions to the case study provided.

Introduction to Break Even Analysis, students apply new understandings to

work sheet.

Topics

Covered

Presentation

Break Even Analysis



Learning

Outcomes


Give a summary to what a Break Even Analysis and why it is important

Assess and make judgements of a organisations ability to meet a

Break Even Point

Materials

Required

Presentation sheet, BEP work sheet, Text Book, Interactive white board,

projector, laptop, USB of Resources for Unit


13.50 14.30 14.50 15.00

Class presentations on case study . 6 pairs @ 5min each plus laps time: 30min Introduction to Break Even Analysis Copy down information into book from Interactive whiteboard High Light Equations – very important Complete the work sheet using new understanding, finish for homework

Laptop, projector, timer Presentation sheet Ss copy down Break Even Point work sheet

LP1

Accounting Term Definition ACCOUNT is a record in the ledger, where all changes to a particular accounting item are show.

ACCOUNTS PAYABLE (AP) are trade accounts of businesses representing obligations to pay for goods and

services received

ACCOUNTS RECEIVABLE is a current asset representing money due for services performed or merchandise

sold on credit.

ASSET is anything owned by an individual or a business, which has commercial or exchange value. Assets may

consist of specific property or claims against others, in contrast to obligations due

others.

BALANCE is: a. equality between the totals of the credit and debit sides of an account; or, b. the difference

between the totals of the credit and debit sides of an account.

BALANCE SHEET is an itemized statement that lists the total assets and the total liabilities of a given business to portray its net worth at a given moment of time. The amounts shown on a balance sheet are generally the historic cost of items and not their current values.

CREDIT, in accounting, is an accounting entry system that either decreases assets or increases liabilities; in

general, it is an arrangement for deferred payment for goods and services.

CURRENT ASSETS are those assets which can be consumed or converted to another form (usually cash) within a current year.

CURRENT LIABILITIES are those liabilities which have to be paid within the current year. DEBIT is a record of an indebtedness; specifically, an entry on the left-hand side of an account constituting an

addition to an expense or asset account or a deduction from a revenue, net worth, or

liability account.

DEPRECIATION is the allocation of the cost of an asset over its useful life; an expense.

EXPENSE is the amount of assets or services used during a period.

EXPENSES are the daily costs incurred in running and maintaining a business.

GENERAL LEDGER the main ledger, which contains all the important ledge accounts for the organisation.

GOODWILL is that intangible possession which enables a business to continue to earn a profit that is in excess of the normal or basic rate of profit earned by other businesses of similar type. The goodwill of a business may be due to a particularly favourable location, its reputation in the community, or the quality of its employer and employees.

GROSS PROFIT is the difference between the revenues earned from the sale of inventories and the cost of the

goods sold. The net sales minus cost of sales.

INTANGIBLE ASSET is an asset that is not physical in nature. Examples are things like copyrights, patents,

intellectual property, or goodwill. An intangible asset is the opposite of tangible

asset.

JOURNAL, in accounting transactions, is where transactions are recorded as they occur

LEDGER, A file or record where accounts of a similar type are kept together

LIABILITY, in accounting, is a loan, expense, or any other form of claim on the assets of an entity that must be

paid. Amounts owed by an organisation to external parties.

NET PROFIT is the company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.

NET PURCHASES are those items purchased less returns, discounts and allowances on those purchases. NET SALES is gross sales less discounts, allowances, sales returns, freight out, etc. NON-CURRENT ASSETS includes PPE (property, plant and equipment) as opposed to current assets which

includes cash, cash equivalents (e.g. securities, short-term notes, etc.), inventory and accounts receivable. Assets that can not normally be consumed or converted to another form within the current year.

NON-CURRENT LIABILITIES debts which will be paid over a period longer than a current year. OPERATING PROFIT is Gross Profit minus Operating Expenses. The profit made in normal operations.

OWNERS EQUITY the amount of the owner’s interest or investment in the organisation.

REVENUE is the inflows of assets from selling goods and providing services to customers; including the

reduction of liabilities from selling goods and providing services to customers.

SHAREHOLDER'S EQUITY is total assets minus total liabilities. It is the same as EQUITY, NET WORTH and stockholder’s equity.

SOURCE DOCUMENTS are the primary documents used when forwarding an argument or making a

presentation of fact. Usually used as a direct reference as a source of empirical data,

expert opinion or information

TRANSACTION is an event or happening that changes financial position and/or earnings.

TRIAL BALANCE is a list of ledge account balances, prepared on a particular date, as a check of the arithmetic accuracy of the ledger.

WORKING CAPITAL (WC) is current assets minus current liabilities; also called net current assets or current

capital. It measures the margin of protection for current creditors. It reflects the

ability to finance current operations

VentureLine. (2006, October 12). Financial Management Terms Glossary. Retrieved

September 14, 2009, from VultureLine: http://www.ventureline.com/Glossary_W.asp

LP2

Stimulus Questions

Make a list of all the money you expect to receive this fortnight. Then make a list of all the

expenses you are expecting in this fortnight.

1. Will your receipts cover your expenses

2. If not, what will you do? List your alternatives, then chose one and justify your

answer.

3. If you can meet you expenses and have money left over, what will you do with that

spare cash? List your alternatives and explain why you have chosen that course of

action.

Form groups of three or four students.

A. Prepare a range of alternative week long holiday destinations.

B. Through discussion, arrive at the most popular destination. Why was this choice

made?

C. As a group, decide on the steps you need to take in order to achieve your goal of

spending a week on holiday. Report to the class the outcome of your groups

discussion.

Sequence of actions in financial information system sheet

4 baisc questions relate to information gained from financial management system:

1. What should happen?

2. What has happened?

3. What does it mean?

4. What can be done about it?

Planning

Recording

and

Reporting

Interpreting

and

Evaluating

Taking

Remedial

Action

Revising

Plan

Importance of financial management sheet

Determine success or failure of business

Importance for profit and non profit organisations

If expertise is not available, external advice should be sought

Financial management forms art of management structure of business

Objectives of financial management sheet

Liquidity - Profitability - Risk Minimisation - Growth

These objectives should be compatible with each other but conflict

can occur in some circumstances.

Can you think of how these may conflict?

LP3

FINANCIAL MANAGEMENT OBJECTIVES

LIQUIDITY – having sufficient cash resources to meet

the day-to-day running costs of the organisation.

PROFITABILITY – making sufficient excess of revenue

over expenses to make the risks of running the organisation worthwhile.

RISK MINIMISATION – most if not all business activities

involve a degree of risk, but the goal is to minimise risks whenever and wherever possible.

GROWTH – looking for and taking advantage of

opportunities for expansion.

LP4

Guest Speaker – MR SMITH of the CommonWealth Bank, Financial Planner

MR SMITH’s Daughter is a student of Brisbane State College

Computer Lab to Work on Presentation

LP5 - Computer Lab Research Lesson

Financial Management

Computer Lab Questions You are to answer all the questions (1-7) individually. Ensure you are saving your document as you go. Once you have completed the questions format the document so that it is clear and easy to read the information. After completing this sheet you may continue working on your Presentation which is due first thing at the beginning of our next lesson.

1. Search the internet for job advertisements relating to the area of finance and identify

the follow:

a. Name of Different positions

b. Types of qualifications required

c. Types of skills required

d. Duties and responsibilities

e. Area of employment

f. How the position fit into the management structure of the organization

2. List common reasons for the failure of small businesses

3. What would be the goals of the following organizations? Why would financial

management be important in achieving these goals? Their websites may be of some

use in finding the answers to these questions.

i. BHP

ii. Jims Mowing

iii. Beyond Blue

iv. Griffith University

4. What is the general purpose of financial management?

5. Why do many small businesses go out of business in relation to poor financial

management?

6. If profit is measured as revenue minus expenses, why does this not necessarily

mean that a cash flow will be sufficient?

7. What are the 3 main types of decisions in financial management? Explain and give

an example for each.

LP6

Break Even Point – is the output level where neither a profit nor loss is made because total costs are equal to sales. A business must know the point at which they cover costs to plan how profit can be made.

Break Even Analysis When preparing a plan that following questions asked are:

How much profit should be attained?

How much sales volume will be required to obtain that profit?

If sales increase or decrease, what will be the effect on cost and therefore on profit?

Profit How much: Maximum possible

Provide a reasonable return on owner’s investment (calculate return on

capital)

Volume of sales 2 components: Quantity of product

Price charged

Volume of Sales = Quantity X Price

Cost 1. Classified as selling, administrative, finance

2. Fixed Costs/Variable Costs

a. Fixed costs remain constant over time and sales volume

b. Variable costs vary according to changes in sales volume

c. Total Cost = Fixed Costs + Variable Costs

The Scribbler – Production of pens

Scenario One Scenario Two Scenario Three

The following information is provided based on the

selling price of $3 per unit

Costs:

Rent $150

Advertising $ 50

Insurance $ 25

Cost of Materials

Ink 25c

Plastic tube 5c

Metal spring an tip 35c

Electricity $50

Wages $75


selling price of $4 per unit

Costs:

Rent $180

Advertising $ 50

Insurance $ 25

Cost of Materials

Ink 25c

Plastic tube 5c


Electricity $55

Wages $80


selling price of $2.50 per unit

Costs:

Rent $150

Advertising $ 50

Insurance $ 25

Cost of Materials

Ink 35c

Plastic tube 10c


Electricity $50

Wages $75

What are the Fixed Costs?

What are the Variable Costs?

Calculate the Break Even Point?







Which is the best strategy and why?

Documents

Lesson Plans 1-6 & Resources