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					                                      Lesson Plan
Instructor:                                                 Grade Level(s):         9th
Course:       Intro. to Agriscience                         # of Students:
Unit Topic:   Record-Keeping
Lesson Title: Financial Balance Sheet Statement
Objectives:

Broad Goal/Terminal Objective:
- Develop a financial balance sheet based on your records, given the lesson, with all students
participating.

Specific Objectives:
    1. Discuss assets owned and their value, given the definition, with students discussing all
        areas of assets.
    2. Discuss liabilities and equity, given the examples, with students participating with 80%
        accuracy.
    3. Total equity/net worth, given the formula, with students identifying the correct numbers
        to use.
    4. Develop a financial balance sheet based on your records, given the lesson, with all
        students participating.
Connections: (Identify the Standards to Which the Lesson Connects)
Academic Expectations
AE 1:2
Students make sense of the variety of materials they read. (Objectives #1, #2, #3, definitions
and formulas)
AE 1.5 - 1.9
Students use mathematical ideas and procedures to communicate, reason, and solve problems.
(All objectives, Financial Statement)
AE 2.18
Students understand economic principles and are able to make economic decisions that have
consequences in daily living. (All objectives, Record Keeping)
AE 2.7
Students understand number concepts and use numbers appropriately and accurately. (All
objectives, Financial Statement)
AE 2.8
Students understand various mathematical procedures and use them appropriately and
accurately. (Net Worth Formula, Objective #3)
AE 2.37
Students demonstrate skills and work habits that lead to success in future schooling and work.
(Record-Keeping, all objectives)
AE 6.1
Students connect knowledge and experiences from different subject areas. (Record-Keeping, all
objectives)

Core Content
                                                                                          1|Page
PL-HS-3.2.1
Students will apply financial management practices, including budgeting, banking (e.g.,
check writing, balancing a checking account), savings and investments (e.g., advantages
and disadvantages of savings accounts, stocks, bonds, mutual funds, certificates of deposit,
IRAs, 401Ks) and credit (e.g., responsible use of debit and credit cards, establishing and
maintaining good credit, cause and effect of bankruptcy) and explain their importance in
achieving short and long-term financial goals. (Record-Keeping, all objectives)

PL-HS-4.2.1
Students will identify individual work habits/ethics (e.g., individual/team responsibilities,
willingness to learn, integrity, respect, confidentiality, self-discipline, problem-solving,
punctuality, communication skills) and explain their importance in the workplace. (Creating
a Financial Sheet, Objective #4)

SS-HS-3.3.2
Students will describe how specific financial and non-financial incentives often influence
individuals differently (e.g., discounts, sales promotions, trends, personal convictions).
(Creating a Financial Sheet, Objective #4)

MA-HS-1.3.1
Students will solve real-world and mathematical problems to specified accuracy levels by
simplifying expressions with real numbers involving addition, subtraction, multiplication,
division, absolute value, integer exponents, roots (square, cube) and factorials. (Practice
Problems, Objective #4)

Skills Standards
AA 017 Identify the organizational need for profit. (Creating a Financial Statement, Objective #4)
AB 001 Add, subtract, multiply, and divide four-digit numbers with/without the use of a calculator. (All
objectives, Financial Record-Keeping)
AB 003 Apply basic math functions to solve problems. (Practice Problems, Objective #4)
EC 009 Explain the effect of quality on profit. (Financial Statement Sheet, Objective #4)
OD 001 Apply effective record keeping skills including financial records. (Record-Keeping, all
objectives)
OD 002 Demonstrate knowledge of budgeting and cash flow. (All objectives, Keeping records)
Context:
Where are the learners beginning?
This is the fourth lesson in the Record-Keeping unit.

Any special circumstances?
This lesson should follow the Gifts, Inheritance, Non-Earned Income, etc. Lesson Plan

Any students on IEPs?/What modifications are necessary?

Resources and Materials:
Handouts:                                                       Resources/References:
    Practice Problems Handout                                      Kentucky Ag Ed Record
    Review Questions                                                 Keeping Modules

                                                                                               2|Page
       Record Book                                              Microsoft Works Dictionary
       Exam                                                     Kentucky State FFA

Materials:
    Document Camera


Instructor Directions/Methods       Content Outline
Announcements/Review:

Income Not Related to Ag. &            Yesterday’s Lesson covered Income Not Related to Ag,
Gifts, Inheritance and Other Non-      gifts, inheritance and other non-earned income, today
Earned Income                          we are going to begin Section V in the Record Book.


            INTRODUCTION (Preparation/Interest Approach/Learning Context)


“Your Value”                        What are you worth?

                                    Do you know?

                                    What items do you have that are valuable?

                                    Do these things add up?

                                    What would others say you are worth?

Link:                               Just as we put a value on the things we own, we put a value
                                    on what “we” are worth. This number is what creditors use
                                    to give us loans, it is also one we use to see if we are
                                    making money or losing money.

Learning Context:                  Today we are going to go over Section V of the record
                                   book. This section will allow you to make a financial
                                   balance sheet to see what you are “worth”.
                                   This information can be somewhat tricky, so you have to
                                   follow along closely, if you have any questions at any time,
                                   please let me know.
                        LESSON (Presentation, Methods & Application)
   Objective 1: Discuss assets
   owned and their value, given
   the definition, with students
   discussing all areas of assets.



                                                                                     3|Page
Instructor Directions/Methods   Content Outline

                                -Section V covers the gain or loss in the enterprise. We
                                will compare beginning and ending values to see if there
                                was a gain or loss.

                                -Again, Beginning Values will begin January 1st, and will
                                be in Column A of the record book

                                -Column B will contain the ending values as of December
                                31st.

                                -Section A begins the record book with assets.

Definition                      -Assets include ALL items of property that have a
                                monetary or dollar value, that are legally owned by that
                                person.

Current/Operating Assets        -Section A1 will cover Current/Operating Assets
                                 This is the cash or items you own that could be normally
                                converted into cash within one year of the normal course of
                                business operation.

Show each section over the      A1a. Cash on-Hand, Checking and Savings
document camera                      -this is the total amount that you have in your
                                       possession in cash, in your checking account and in
                                       your savings account as of Jan. 1 and of Dec. 31., in
                                       the correct columns.

                                A1b. Cash value-Bonds, Stocks and Life Insurance
                                     -this is the amount you have in savings bonds, stocks
                                      Life insurance (give a cash value).

                                A1c. Notes & Accounts Receivable
                                     -the total amount of money that is owed to you

Transferring Totals from        A1d1. Candidates Investment in Harvesting and Growing
Inventory                       Crops.
                                     -transferred from Section III, Part A

                                A1d2. Candidates Investment in Feed, Seed, Fertilizer,
                                Chemical, Supplies, Prepaid Expenses, and other Current
                                Operating Assets
                                       -transferred from Section III, Part B

                                A1d3. Candidate Investment in Merchandise, Crops, and

                                                                                   4|Page
Instructor Directions/Methods   Content Outline
                                Livestock Purchased for Resale
                                        -transferred from Section III, Part C

                                A1d4. Candidates Investment in Raised Market Livestock
                                and Poultry
                                        -transferred from Section III, Part D

Totaling                        -One of the most important aspects in creating the financial
                                balance sheet is to total correctly and follow the directions
                                from the record book

                                -Each section on the record book financial sheet where you
                                have to total tells you exactly what sections to add
                                together.

                                A1d5. Total Current/Operating Inventory
                                      -add lines A1d1 + A1d2 + A1d3 + A1d4

                                A1e. Subtotal Productively Invested Current/Operating
                                Assets
                                       -add lines A1a + A1b + A1c + A1d5

Non-Productively Invested       A1f. Non-Productively Invested Personal Assets
Personal Assets                      -these include baseball cards, CD’s, video games,
                                      clothes, or anything else personal that is not related to
                                      the SAE that can be considered Current/Operating
                                      Asset.

                                     -You should have a beginning value and an ending
                                      value

Total                           A1 g. Total Current/Operating Assets
                                      -add lines A1e + A1f.

Non-Current/Capital Assets      -Section A2 will cover Non-Current/Capital Assets
                                   -these are assets that have a productive life of more than
                                    one year and are used in your business.

Inventory Transfers             2a1. Candidates Investment in Non-Depreciable (raised)
                                Draft, Pleasure and Breeding Livestock and Poultry
                                      -transferred from Section III, Part E

                                2a2. Candidates Investment in Depreciable (purchased)
                                Draft, Pleasure and Breeding Livestock
                                       -transferred from Section III, Part F

                                                                                     5|Page
Instructor Directions/Methods      Content Outline

                                   2a3. Candidates Investment in Machinery, Equipment, and
                                   Fixtures
                                          -transferred from Section III, Part G

                                   2a4. Candidates Investment in Depreciable Land
                                   Improvements, Building and Fences
                                          -transferred from Section III, Part H

                                   2a5. Candidates Investment in land
                                          -transferred from Section III, Part I.

                                   -All inventory sections should have a beginning and ending
                                   value

Totaling                           2a6. Subtotal Productively Invested Non-Current/Capital
                                   Assets
                                         -add lines A2a1 + A2a2 + A2a3 + A2a4 + A2a5

Non-Productivity Invested          2b. Non-Productivity Invested Current/Operating Assets
Current/Operating Assets                -these items include automobiles, boats, stereos, TV’s,
                                         guns, or anything other Non-Current/Capital personal
                                         item (not related to your SAE).

                                        -each item should be listed in the three blank lines
                                         below this section.

Totals                             2c. Total Non-Current/Capital Assets
                                        -add lines A2a6 + A2b

                                   3. Total Productively Invested Assets
                                       -add lines A1e + A2a6

                                   4. Total Non-Productively Invested Assets
                                       -add lines A1f +A2b

Total Assets                       5. Total Assets
                                        -add lines A3 + A4.
   Objective 2: Discuss
   liabilities and equity, given
   the examples, with students
   participating with 80%
   accuracy.




                                                                                       6|Page
Instructor Directions/Methods     Content Outline
Section B                         Section B will cover liabilities and equity.

Definition                        -Liabilities include all legal claims by others to the
                                  property or income of an individual or firm.

                                  -These are debts or bills.

                                  -Equity or Net Worth refers to the financial condition of
                                  an individual at a given time.

                                  -This tells what “you” are Worth!

                                  -Equity is determined at the end of each year.

Current/Operating Liabilities     Section B
                                  6.Current/Operating Liabilities
                                        -these are things that you must pay within the next
                                         year.

                                  B6a . Accounts and Notes Payable
                                         -this includes operating loans, accrued taxes,
                                          accrued rent, lease payments, interest, etc.

                                           Examples: charge accounts, feed bill, etc.

                                  B6b. Current Operating Portion of Non-Current/Capital
                                  Debt.
                                        -this represents the principal that is due within the
                                         next year on items such as equipment, machinery,
                                         breeding livestock, etc.

Totaling                          B6c. Subtotal: Current/Operating Liabilities associated
                                  with Productively Invested Assets
                                       -add lines B6a + B6b.

Current/Operating Liabilities     Current/Operating Liabilities associated with Non-
associated with Non-Productive    Productive Personal Assets
Personal Assets                        -this represents what you owe within the next year
                                        on automobiles, motorcycles, boats, ATVs or
                                        anything else that is personal (not used in your SAE)

Totals                            Total Current/Operating Liabilities
                                        -add lines B6c + B6d.

Non-Current/Capital Liabilities   8. Non-Current/Capital Liabilities

                                                                                        7|Page
Instructor Directions/Methods     Content Outline
                                          -those liabilities that are not due within one a
                                           year.

                                  B8a. Notes and Chattel Mortgage
                                           -this represents the amount you still owe on
                                            assets that were used with the candidates SAE
                                            after you subtract the current portion.

                                            -Examples: loans for machinery, equipment,
                                             Tools, breeding livestock, etc.

                                            -this is found by subtracting the current portion
                                             from the total non-current liability.

                                  B8b. Real Estate Mortgages, Contracts
                                            -this represents the amount you still owe on
                                             Land, long-term contracts buildings, fences, etc

                                             -determined by subtracting the current portion
                                              From the total non-current liability.

                                  B8c. Other Non-Current/Capital Liabilities
                                            -any amount still owed on items not covered in
                                             lines B8a and B8b.

                                             -subtract the current portion from the total non-
                                              current liability.

Totaling                          B8d. Subtotal-Non-Current/Capital Liabilities associated
                                  with Productively Invested Assets
                                             -add lines B8a + B8b + B8c.

Non-Current/Capital Liabilities   B8e. Non-Current/Capital Liabilities associated with Non-
associated with Non-Productive    Productive Personal Assets
Personal Assets                            -this represents the amount you still owe after one
                                            year on automobiles, motorcycles, boats, or
                                            anything else that is personal (not used in your
                                            SAE).

                                           -subtract the current portion from the non-current
                                            liability.

Totals                            B8f. Total Non-current/capital liabilities
                                            -add lines B8d + B8e.



                                                                                     8|Page
Instructor Directions/Methods         Content Outline
Assets and Liabilities TOTALS         9. Total Liability on Productive Asset
                                                -add lines B6c. + B8d.

                                      10. Total Liability on Non-Productive Assets
                                                -add lines B6d. + 8e.

                                      11. Total Liabilities
                                                -add lines B9 + B10
   Objective 3: Total equity/net
   worth, given the formula, with
   students identifying the
   correct numbers to use.

   Definition                         Equity or Net Worth refers to the financial condition of
                                      an individual at a given time.

   Formula                            Calculated by: Total Assets-Total Liabilities =Net Worth
                                      (Equity)

                                      12. Total Equity/Net Worth
                                            -subtract Lines A5-B11.

                                      13. Change in Equity
                                             -Line 12 Subtract Column B – Column A

                                      -This will give you the total value or what you are worth


Objective 4: Develop a financial
balance sheet based on your
records, given the lesson, with all
students participating.

                                      -Now, that we know what each section should contain, we
Practice Problems Handout----        need to work on examples so that we know exactly where
                                      to put each item, this will help to make more sense.

                                      -Give students time to work individually, and then go over
                                      with the entire class, by using the document camera and
                                      filling out a record book using the examples provided on
                                      the practice problems paper.


Review:                               Go over each of the review questions out-loud while
                                      students are looking at a copy of the handout.

                                                                                        9|Page
Instructor Directions/Methods   Content Outline

                                Be sure to answer any questions or clear up any confusion
                                that may be present.

Overview:                       Tomorrow you will be given the exam over the Financial
                                Balance Sheet Statement, we will then cover Section VI:
                                FFA Activities and School and Community Activities.
                                   ASSESSMENT
Formative Assessment
                                -Students will be expected to complete the practice
                                problems as a study guide for the exam as well as
                                participation points for the day, as part of their notebook
                                grade.
Summative Assessment
                                -Section V Exam will be completed for a total of 100
                                points.




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