1. Financial Record Keeping and Analysis

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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