Financial Record Keeping and Analysis

Describe ways that businesses keep track of their financial results Distinguish between a profit and loss statement, a balance sheet, and a cash flow statement Explain the concepts of financial analysis, financial analysis tools, and the relationships among financial measurements Lesson Objectives

Key Vocabulary Terms Annual Reports Balance Sheet Cash Flow Statement EBIT EBITDA Financial Analysis Tools Gross Profit Margin Net Income Net Income margin Profit and Loss Statement Key Vocabulary Terms

Using Financial Systems and Financial Record-Keeping Tools What would it be like to receive and spend huge amounts of money every day? Some days you might receive much more than you spend. Other days you might spend much more than you bring in. How would you make sense of it all? How would you make sure your bills got paid? How would you know how much money you have or how much you have made so far this year? Using Financial Systems and Financial Record-Keeping Tools

Using Financial Systems and Financial Record-Keeping Tools Keeping track of lots and lots of money may seem like a nice problem to have— but it is still a challenge Just like wealthy individuals, businesses need to understand their finances, and the amount of money they must keep tabs on can be huge Using Financial Systems and Financial Record-Keeping Tools

Using Financial Systems and Financial Record-Keeping Tools The Internal Revenue Service requires businesses to maintain financial records in order to calculate business taxes Companies that do business internationally have currency exchange rates to deal with This can become very complex very quickly. All businesses have systems to keep track of the money they have as well as the bills they must pay Once a company has information in a financial system, it is very easy to take that information and use it to manage the business Using Financial Systems and Financial Record-Keeping Tools

Introducing Business Record-Keeping and Financial Analysis Download- Worksheet: Business Record- Keeping and Financial Analysis Try your best to answer all of the questions Introducing Business Record-Keeping and Financial Analysis

Learning about Financial Tools in Expert Groups Download- Assignment: Financial Tools Matrix Be sure to include sample documents from 1 publicly traded company and in the calculation section, calculate EBIT, gross profit margin and net income margin Download- Reading: Financial Analysis and Record-Keeping Tools Learning about Financial Tools in Expert Groups

Business Record-Keeping and Financial Analysis Revisit worksheet: Business Record- Keeping and Financial Analysis and correct your answers with an explanation as to why the answer is correct Business Record-Keeping and Financial Analysis

Cross-Curricular Integration Research accounting and bookkeeping methods from early history to the present. (Records discovered in Babylonia date back to 3600 BCE). Create a timeline to present your findings. Cross-Curricular Integration

Business Letter Preparation Eduardo Cisneros is asking for their help again The ECPak Company is in trouble The CFO has resigned! Mr. Cisneros would like you to write a letter to his new management team explaining the issues the company is currently facing Business Letter Preparation

Business Letter Preparation Download- Assignment-Financial Tools Business Letter What are the questions asking you to do? What questions must be answered in the letter Business Letter Preparation

Business Letter Download- Frame: Letter to ECPak Management Use this frame to help guide your letter writing Everything in the frame must be in the letter Have it read over by a classmate before submitting Business Letter

What is the best way to track a company’s income from month to month? What is the best way to show investors how a company is faring financially? Sharing Letters

Financial Record-Keeping Imagine that you are receiving and spending huge amounts of money every day. Some days you might receive much more than you spend. Other days you might spend much more than you bring in. What are some different ways that you could make sense of it all? Financial Record-Keeping

Financial Record-Keeping How would you make sure your bills got paid? How would you know how much money you have available? How could you keep track of how much you have made so far this year? Financial Record-Keeping

Cross-Curricular Integration Research Luca Pacioli, Italian mathematician and author of the first surviving accounting textbook. He is famous for spreading the knowledge of double-entry bookkeeping. 1 page biography about Luca and then explain the usefulness of double entry accounting in at least 0.5 pages. Cross-Curricular Integration