Griffin | Entrepreneurship
 
Resume Table of Contents  

Entrepreneurship

Entrepreneurship
Financial Performance

 
State Standards
 
  • E 5.1 Content Standard: Understand the role of finance as it applies to the
    entrepreneur.
  • E 5.1.2 Identify speculative business risks (FI:080)(ON)
  • E 5.1.12 Obtain insurance coverage (FI:083) (ON)

  • E 6.1 Content Standard: Students understand the tools, techniques, and systems that
    businesses use to plan, staff, lead, and organize its human resources.
  • E 6.1.4 Screen job applicants/résumés (HR:354)(MN)

  • E 8.1 Content Standard: Students understand the processes and systems implemented
    to monitor, plan, and control the day-to-day activities required for continued business
    functioning.
  • E 8.1.10 Explain the nature of risk management (FI:084) (ON)
  • E 8.1.12 Develop strategies to protect workplace security (OP:014) (ON)

  • 9.1 Content Standard: Students investigate the nature of small business and
    entrepreneurship.
  • E 9.1.10 Summarize the influence of technology as it relates to small business
Chapter Objective
 
  • Analyze Your Financial Performance
    • Use basic math skills in business.
    • Complete sales transactions.
    • Calculate percentages for business purposes.
    • Understand basic financial terms
    • Calculate breakeven point
    • Calculate the level of sales you need to achieve to make a profit.
1.

Analyze Your Financial Performance / Use basic math skills in business

Financial Performance Power Point

Basic Math In Business
Sales Tax price x tax
  $23.92 x .07 = $1.67
  $1.67 + $23.92 = $25.59 or
  $23.92 x 1.07 = $25.59
  (Record sales tax separately for reporting to the IRS.)
Percentage Sales Growth (new sales – old sales) / old sales
  $26,710 - $26,533 = $177
  $177 / $26,533 = .7% increase
Percentage Markdown (old price – new price) / old price
  $149.95 – 99.95 = $50.00
  $50.00 / $149.95 = 33%
Sales Price (old price * markdown) – old price
  $149.95 * 33% = $49.48
  $149.95 - $49.48 = $100.47 or
  $149.95 * 67% = $100.47
Average Sales (Sales 1 + Sales 2) / # of Sales
  ($16.75 + $26.53) / 2 = $21.64
Markup (wholesale price * % markup) + wholesale
  ($14.00 * 35%) = $4.90
  $4.90 + $14.00 = $18.90 or
  $14.00 * 1.35 = $18.90
  Traditional Markup = 100%, buy wholesale for $10, sell for $20
Projected Sales (sales * growth rate) + sales
  $28,202 * .012 = $338
  $338 + $28,202 = $28,540 or
  $28,202 * 1.012 = $28,540
Yearly Interest loan amount * rate
  $25,000 * 9.5% = $2,375
Amount Due (Price * Markdown) * tax + s/h
  ($24.95 * .75) * 1.07 + $8.95 = $28.97
2.

Analyze Your Financial Performance / Financial Terms

  • Net Sales
    • Gross Sales – Dollar amount of all sales, including returns
    • Net Sales – Dollar amount of all sales after returns are subtracted
  • Net Income After Taxes
    • Gross Profit – Profit before operating expenses are deducted
    • Net Income from Operations (Commonly known as Net Profit) – Gross profit minus operating expenses (after taxes)
  • Cost of Goods Sold
  • Analyze your sales
  • Analyze net profit on sales
  • Why net profit on sales is important
  • Breakeven Analysis
    • Measure fixed costs
    • Measure variable costs
    • Measure sales
    • Measure profits
    • Breakeven = Total Fixed Costs / (Selling Price per Unit – Variable Cost per Unit)
3.

Analyze Your Financial Performance / Calculate Profit and Breakeven

Quiz

 

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