YEAR 11 BUSINESS MANAGEMENT: KEY FINANCIAL INDICATORS

YEAR LEVEL & SUBJECT: Year 11 Business Management.

DATE: Tuesday 22nd July 2014 (Period 5 & 6).

NO. OF STUDENTS: 20 students.

LESSON DURATION: 100 minutes (Double Period).

STUDY DESIGN: KEY KNOWLEDGE:

Concepts used within simple financial reports, such as the Profit and Loss Report, Cash Flow Report or Balance Sheet.
GOALS AND OBJECTIVES:
The students will be able to:
Understand how a Profit and Loss Statement (or Balance Sheet) can be used to evaluate a small business.
Define a range of key financial terms.
Calculate gross profit, operating income and net income using the Profit and Loss Statement from Myer.
Identify and understand the key features of a Balance Sheet.
SUMMARY OF RESOURCES REQUIRED:
Whiteboard.
Whiteboard marker.
Key Concepts in Business Management Units 1 & 2 p.98 & 100 (Students to provide).
20 x Myer Holdings Ltd: Profit and Loss Statement worksheets.
YouTube Balance Sheet Basics: What We Have, What We Owe, What Were Worth: http://www.youtube.com/watch?v=tW8yiBxRFp8
Projector.
20 x Balance Sheet Basics: YouTube worksheets.
LESSON PROCEDURE

TIMING

RESOURCES

10
mins.

N/A.

STEPS OF THE LESSON

(key activities and key questions)
Opening:
Housekeeping.
Lesson Reflection.
Lesson Outline:
- Financial Indicators.
- Profit and Loss Statement.
- Balance Sheet.

EXPECTED STUDENT
REACTIONS OR
RESPONSES
Listening attentively to
teacher.

TEACHER RESPONSES
GOALS & METHODS OF
TO STUDENTS
EVALUATION
(including consideration
(including specific informal
of the need to adapt,
and/or formal assessment links
reteach or extend)
to AusVELS)
N/A.
N/A.

20
mins.

Whiteboard.
Whiteboard
marker.
Key Concepts
in Business
Management
Units 1 & 2
p.101
(Students to
provide).

20
mins.

Whiteboard.
Whiteboard
marker.
20 x Myer
Holdings Ltd:

Lesson Development:
Profit and Loss Statement:
- Reflection on KPIs:
profitability.
- Profit and Loss Statement
a document primarily
used to help a business
calculate how much net
profit it has made over a
period of time.
- Net profit = Total revenue
Total expenses.
- Revenue the money
coming into the business
from the sales of goods
and services.
- Expenses the costs
incurred in providing
goods and services for
sale.
- Example (p.101 TB).
- Purposes:
o Is revenue high
enough to cover
expenses?
o Is profit mark-up on
purchases sufficient?
o Is the business
making an adequate
profit?
o Are the expenses in
proportion to the
revenue earned?
- Model answers on
whiteboard with a mind-map.
Myer Profit and Loss Statement:
- Go through worksheet as a
class.
- Model instructions on the
whiteboard.

Define the appropriate

terms.
Write down notes from the
whiteboard.
Respond to teachers
prompts accordingly.

Prompt students where

possible.
Classroom management.

N/A.

Ask for assistance

where required.
Complete work
individually.

Provide clear and

thorough instructions.
Provide assistance
where required.

Summative:
Students will correct their
work, indicating levels of
understanding.

Profit and
Loss
Statement
worksheet.

15
mins.

Whiteboard.
Whiteboard
marker.

Review and correct answers

as a class.
Model answers on the
whiteboard.
Class discussion:
o Is this a good result
for Myer?
o How do you know?
o Is it just me, or is this
result seem quite
low? Only 127,000?
o Stress the
importance of
comparing data with
previous years, as
well as reading the
Profit and Loss
Statement properly.
All numbers
are in
thousands.

Balance Sheet:
- Class Discussion.
- Balance Sheet a
document that provides a
snapshot of what a
business owns (assets)
and owes (liabilities), and
the owners equity on a
given date.
- Owners equity money
given to the business by
the owner.
- Purpose:
o Identify equity and
debt levels.
o Evaluate a business
overall financial
position.

Participate in class
discussion.

Participate in class
discussion.
Define the appropriate
terms.
Respond to teachers
prompts accordingly.

Model answers clearly

on whiteboard.
Facilitate class
discussion.
Classroom
management.

Facilitate class
discussion.
Prompt students where
possible.
Classroom
management.

N/A.

o
o

25
mins.

YouTube
Balance
Sheet Basics.
Projector.
20 x Balance
Sheet Basics:
YouTube
worksheets.
Key Concepts
in Business
Management
Units 1 & 2
p.103
(Students to
provide).

10
mins.

N/A.

Enables financial
decisions to be
made.
Indicates whether the
owners are making a
good return on their
investment.

Balance Sheet Basics YouTube:

- Watch video twice.
- Go through questions and
answers on worksheet preand post-video.
- Model answers on the
Whiteboard.
- TB (p.103) example:
o What do you notice
about the total assets
and total equities?
Equal.
- Assets must balance on one
side, with liabilities and
owners equity on the other.
Closure:
Lesson Summary.
Outline for the next lesson.
Pack up Procedure.

Complete worksheet
whilst watching video.
Watch YouTube silently.
Provide responses as
directed by teacher.
Respond to teachers
prompts accordingly.

Summarise lesson.
Pack up accordingly.

Make comments
throughout YouTube
where necessary.
Model answers clearly on
whiteboard.
Classroom
management.

Summative:
Students will correct their
work, indicating levels of
understanding.

Facilitate Pack up
procedure.

N/A.