Should the Business Expand?

Lesson Content

• Lesson Plan Template:

  CTE Lesson Plan

• CTE Course Info and Benchmark Notes

  
  

  50.02 Demonstrate proficiency in the use of spreadsheet and accounting software to maintain accounting records to include creating and manipulating both data and formulas, formatting data, securing data and presenting results visually (including charts and graphs).

  52.05 Prepare business plans, budgets, and forecasts to support the management process.

• Unit Outline

  
  

  This lesson is designed to be used with the case study, “Should the business expand?” See CPALMS resource ID#_207927.

• Career Connection

  
  
  • Students will prepare financial statements to help them evaluate business operations and decide on future business endeavors.
  • Students will be able to present and explain financial data to help a business make informed decisions.
  • Students will be able to orally present information in a professional setting through the use of a multimedia platform while utilizing sufficient evidence, and proper speech delivery.

• Learning Objectives

  
  

  Students will be able to:

  • Create financial statements with the data given and determine whether a business expansion will be profitable and feasible given the current resources the business possesses.
  • Analyze financial statements to support business decisions.
  • Identify key financial indicators using financial statements.
  • Present and explain financial data in a professional setting, practicing proper speech delivery.

• Prior Knowledge

  
  

  Students should be familiar with:

  • Accounting terms and financial statements
  • Preparing graphs and tables using spreadsheet software

• Guiding Questions

  
  
  • What factors influence business expansion?
  • Which financial indicators are most helpful when making business decisions?

• Procedure

  
  
  1. Have the question on your screen or board, "What factors determine whether a business should expand?"
     • Allow for class discussion. (Make sure financial statements or components of them have been mentioned. Remind students what each statement provides.)
  2. Hand out the Case Study 207927 Should the Business Expand? Allow students to read the case study and discuss if their factors have changed. Explain to students that they will be completing Financial statements and preparing a presentation to share with the class on their determination of whether the business should go ahead with the expansion.
  3. Hand out financial data for Leisure Foods and Tiger Snacks for each student to review and complete individually. Make sure students have access to a computer and share the Financial Statements Template spreadsheet.
     • Explain to students that they will use the spreadsheet template to create a balance sheet, income statement, and cash flow statement with the data provided.
     • Explain to students they will analyze the information to determine if it’s viable for the business to expand.
     • During this time, walk around and make sure students are completing statements correctly and are having a discussion on whether the expansion is advisable or not.
     • If you don’t have access to computers for students to prepare the statements, you can hand out the blank financial statement sheets for students to complete.
  4. Have students get into small groups (like a board meeting) to share and discuss what decision they made and how they analyzed the data including what ratios/calculations they used.
     • Make sure they have solid financial data to justify their response.
     • How did the previous year’s financial information affect their decision?
     • What other factors did they consider? (Employee morale, exclusivity contract, new product line, new retailers)
  5. Have the small groups present orally to the class their decision and justification.
     • Make sure to limit the speaking time so everyone has a chance to share.
     • Look for well-organized and focused presentations which show awareness of the audience.
     • Look for effective integration of credible evidence to support the content.
     • Students must share what reson they chose for approving or not approving the expansion.
  6. Closing Activity - Discuss the financial ratios/calculations students used to support their decision. You can leave them thinking about if it’s always the right decision to expand. (Work/life balance and keeping with quality service.)

• Teacher Notes

  
  
  • There are blank financial statements that students can use if no access to computers.
  • The initial data and answer keys are included in the spreadsheet as separate tabs. You may want to save a copy without these tabs for students to access the blank forms in excel.

• Optional

  
  

  Formative Assessment Ideas:

  • Use probing questions to monitor student thinking during group discussions and analysis.

  Summative Assessment Ideas:

  • Use the rubric to assess oral presentation and completed financial statements.

  Extension Ideas:

  • Have students create the first promotional item for the new product line
  • Have students forecast the financial data

  Accommodations:

  • You can provide completed or partially-completed financial statements to the students.