LP1 – Lesson Plan One

Title Introduction to Financial Management No. Students 12

This lesson will be the first one back from the holidays. It will introduce
Overview students to what financial management incorporates through the introduction
of some relevant terms.
Topics Introduction to Financial Management
Covered Financial Management Terms

Year Level 11 Duration 70 min

Subject BOM Unit Financial Management

At the end of the lesson, students will be able to:
Learning
 Explain what Financial Management involves
Outcomes
 recall Financial Management Terms
Stimulus Question sheet, Definitions of Financial Management sheets,
Materials
Financial Term cards, Interactive white board, laptop, USB of Resources for
Required
Unit

Time Teacher Activity Resource

13.50 Welcome students

Ask about holidays. Have 5 min at start of lesson about „them‟.
Then time to learn!

13.55 Introduce Financial Management Text Book

Kenman, 2006
 What do you already know about FM?
pg 204
 What does it incorporate?
 Read Intro Chapter as class

14.15 Definitions of Financial Management Terms

 Display Definitions of Financial Management Terms on Laptop,
Interactive
interactive white and have students copy them into their Whiteboard,
books. Definitions File
Time Teacher Activity Resource

14.30 Accounting term charades

Cut up list of
 Each student of the class is given a term on a card. They are
Terms
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.

15.00 Homework is to have all this terms copied into your work book.
LP2 – Lesson Plan Two
Title Applying the process, Importance & No. Students 12
Objectives
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.
Overview 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.
Sequence of action in financial information system
Topics Importance of financial management
Covered Objectives of financial management
Apply understanding to case study
Year Level 11 Duration 70 min

Subject BOM Unit Financial Management

At the end of this lesson, students will be able to:
 Apply the sequence of action in a financial information systems to a
Learning
range of situations
Outcomes
 Identify the importance of financial management
 Identify the objectives of financial management
Stimulus questions sheet, Importance of financial management hand out,
Materials
objectives of financial management hand out, Interactive white board, laptop,
Required
USB of Resources for Unit
Time Teacher Activity Resource

List of terms
11.25 Revision of keys terms from last week.
from last lesson
Teacher reads definitions out, students are to list terms.
To increase difficulty – teacher reads term and students define

11.40 Stimulus Questions Laptop,

Interactive
 Display the questions on the interactive whiteboard. Have
Whiteboard,,
them write all questions down first and then answer it them. Stimulus
Question File,
 After all questions have been answered discus answers as a OHT as backup
class.

12.05 „Walk‟ through „sequence of actions in financial information system‟ Laptop,

file. Interactive
Whiteboard,
Sequence of
Ask for why students think financial management is important? actions,
From this can we determine what the objectives of financial Importance and
management might be? objectives File
Provide „importance‟ and „objective‟ hand out. Walk through it as a
class on interactive whiteboard

Case study
12.22 Begin to apply knowledge to case study hand out by discussing handout
possible answers as a class. For homework attempt to answer all the
questions of the case study.
12.35
LP3 – Lesson Plan Three
Title Sources of Finance No. Students 12
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
Overview
(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 Sources of Finance; Debt & Equity
Covered Profit Distribution

Year Level 11 Duration 70 min

Subject BOM Unit Financial Management

At the end of this lesson, students will be able to:
 Understand the dis/advantages of different sources of finance
Learning
elaborating on judgements arguing a point
Outcomes
 Apply these understandings in order to analysis, evaluate and forecast
outcomes
Materials
Text Book, Interactive white board, laptop, USB of Resources for Unit
Required
Time Teacher Activity Resource

13.50 Work through case study homework task as class. Hand homework
in to teacher.

14.00 Introduce Sources of Finance Text Book

Kenman, 2006
14.07 Divide class into and have each side prepare points for a debate pg 190
supporting either Debt/Equity as a „better‟ source of finance.
Presenting points to class as a group.

14.30 In pairs read the newspaper article about Titled “$200,000 bread-and- “Mr Bird‟s”
butter job” and use the Case Study to Answer Questions 1-4. You will Case Study
need to rationalise you recommendations to the class in a 5min
presentation. The presentation will task place on Friday.

14.15 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)

15.00
LP4 – Lesson Plan Four
Title Sources of Finance No. Students 12
Pool Homework questions for Guest Speaker, pick most appropriate ones as
class.
Overview Guest Speaker Gives presentation and answers questions on Sources of
Finance and Financial Management.
Work on Presentation
Topics
Sources on Finance, real world applications
Covered
Year Level 11 Duration 70 min

Subject BOM Unit Financial Management

At the end of the lesson, students will be able to:
 Elaborate on how sources of finance can be used in a range of
Learning
situation
Outcomes
 Create links between the text and local, nation, global application of
knowledge
Materials Guest Speaker, PowerPoint, Projector, Interactive white board, laptop, USB
Required of Resources for Unit

Time Teacher Activity Resource

13.50 Collect student questions for Guest Speaker and write them on the Whiteboard
white board. Have class chose 4/5 they would most liked answered.

13.58 Welcome Guest Speaker, Mr Smith, Financial Planner for the Laptop,
PowerPoint,
Commonwealth Bank who also has a daughter at the school.
Projector
Mr Smith delivers presentation on Sources on Finance. Students take
notes during presentation.

14.25 Class has those nominated students ask the questions as chosen by
the class to the Guest Speaker
Time Teacher Activity Resource

Thank Mr Smith and the Commonwealth for his time

Students are given time to work on outline of their presentation in Computer Lab
14.30
computer lab next door

15.00
LP5 – Lesson Plan Five
Title Investigating positions of financial No. Students 12
management
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.
Overview
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 Organisations use of financial management
Covered Employment opportunities in relation to financial management

Year Level 11 Duration 70 min

Subject BOM Unit Financial Management

At the end of this lesson, students will be able to:
Learning  Evaluate the alternate amounts of emphasis different organisations
Outcomes give financial management
 Distinguish employment opportunities relating to financial management
Materials Computer Lab, Soft Copy of Work sheet on school database, Net Nanny, USB
Required of Resources for Unit

Time Teacher Activity Resource

Meet students at Computer Lab Soft copy of

11.25
Give instructions on how to access Questions sheet for lesson Work Sheet for
lesson on
school
database
“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.”

12.35
LP6 – Lesson Plan Six
Title Presentations No. Students 12
Break Even Analysis
In pairs students will give their presentations they have prepared over the week
making recommendations and conclusions to the case study provided.
Overview
Introduction to Break Even Analysis, students apply new understandings to
work sheet.
Topics Presentation
Covered Break Even Analysis

Year Level 11 Duration 70 min

Subject BOM Unit Financial Management

At the end of this lesson, students will be able to:
Learning  Give a summary to what a Break Even Analysis and why it is important
Outcomes  Assess and make judgements of a organisations ability to meet a
Break Even Point
Materials Presentation sheet, BEP work sheet, Text Book, Interactive white board,
Required projector, laptop, USB of Resources for Unit

Time Teacher Activity Resource

13.50 Class presentations on case study Laptop,

. projector, timer
6 pairs @ 5min each plus laps time: 30min

14.30 Introduction to Break Even Analysis Presentation

Copy down information into book from Interactive whiteboard sheet Ss copy
High Light Equations – very important down

14.50 Complete the work sheet using new understanding, finish for Break Even
homework Point work
sheet

15.00
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?
Recording
Planning and
Reporting

Interpreting
Revising and
Plan Evaluating
Taking
Remedial
Action
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 The following information is provided based on the The following information is provided based on the
selling price of $3 per unit selling price of $4 per unit selling price of $2.50 per unit
Costs:
Costs: Rent $180 Costs:
Rent $150 Advertising $ 50 Rent $150
Advertising $ 50 Insurance $ 25 Advertising $ 50
Insurance $ 25 Cost of Materials Insurance $ 25
Cost of Materials Ink 25c Cost of Materials
Ink 25c Plastic tube 5c Ink 35c
Plastic tube 5c Metal spring an tip 35c Plastic tube 10c
Metal spring an tip 35c Electricity $55 Metal spring an tip 45c
Electricity $50 Wages $80 Electricity $50
Wages $75 Wages $75

What are the Fixed Costs? What are the Fixed Costs? What are the Fixed Costs?

What are the Variable Costs? What are the Variable Costs? What are the Variable Costs?

Calculate the Break Even Point? Calculate the Break Even Point? Calculate the Break Even Point?

Which is the best strategy and why?