Lesson #8: Balance Sheet

Name: Monica Fowlkes Date: March 24, 2018

Area: Ag Business
Job: Creating a Balance Sheet
Situation:
Students have completed the entire written portion of the business plan and will now need to
complete the financial part of the business plan.

Standards: CV 12.3.1, 3.3, 5.2

Targets/Questions/Objectives:
Students will identify different areas of the balance sheet through self discovery.
Student will determine parts of balance sheet by filling an example balance sheet out.

References and Resources for Lesson:

Sba.org, farm and ranch management, AREC 305 notes
Materials Needed:
Blank Balance Sheet, Example scenario

Plan of Action (Time included):

Prior Knowledge Recall: 5 minutes: I will use this time to see what the students already know
about balance sheets to give me an idea before we get into the notesheet.

Note Sheet: 10 minutes: We will have a group discovery to find out what we know on the note
sheet. I will help students as they are giving answers and examples just to make sure they are
right. I will be using questioning to see what the students know about the terms and equations
that will be included on the balance sheet.

Balance Sheet Practice: 20 minutes: As a class I will give students a scenario to go through
as a class. I will write up the different pieces of information on the board. This would be like a
farmer/rancher giving the accountant their receipts. Students will have to decipher what goes
where whether it will be an asset (current/non-current), or a liability (current/non-current) on the
balance sheet. I will have students struggle through the balance sheet to begin with and then as
a class we will go through the sheet in detail.

Create your own Balance Sheet: 15 minutes: Students will use this time to put their own
business assets and liabilities into a balance sheet. This will be the perfect opportunity for
students to ask any questions of where different things should go on their balance sheet.
Knowledge/Skills/Dispositions targeted on this lesson:

Knowledge: Balance sheet terminology, How to insert into a balance sheet.

Skills: Accounting skills.
Dispositions: Excitement, nerves.

Assessment Plan – What did students learn? How do you know?

Example Balance Sheet: Students will be given the opportunity to put an example scenario
into a blank balance sheet. Based on the scenario I will be able to see what the students
understand through the oral expression of the balance sheet.

Attached:
 Content
 Activity
 Assessment
 Blank Balance Sheet
 Balance Sheet Scenario
 Scenario Answer Sheet
 Notesheet
 Balance Sheet Note Sheet
Standards: CV 12.3.1, 3.3, 5.2
Objectives: Students will identify different areas of the balance sheet through self discovery.
Student will determine parts of balance sheet by filling an example balance sheet out.

Balance Sheet: Reveal Financial Status of a business at a specific point in time.

Assets: Items of value which a company owns

Examples: Cash in bank, Company Car, Accounts receivable, Machinery, real estate,
Patents

Equation: Assets= Liabilities + Owner’s Equity

Accounts Receivable: Money owed to the company from their customers

Current Assets: Any Asset which can be exchanged for cash within one calendar year

Examples: Checking or money market accounts, Accounts receivable

Non-Current Assets: Long term investments

Examples: Land, Buildings, Machinery, vehicles

Liabilities: Obligations of one company (person) to another company (person)

Example: Accounts Payable, Loans, Wages, Salaries, Interest

Current Liabilities: Must be paid within a year

Examples: Accounts Payable, Notes Payable, wages that haven’t been payed

Non-Current Liabilities: Debts or obligations owed by a business which are due more than one
year from current date.

Examples: Accounts Payable, Notes Payable, accrued payroll and withholding.

Owner’s Equity: Initial investments in business and earning which are reinvested back into the
business.

Equation: Owner’s Equity= Assets-Liabilities

Net Worth: Total Value of a company or an individual

Net Worth Equation: Net Worth= Assets - Liabilities

The following items were taken from the records of a company as of December 31st.

Accounts Payable 47,000

Accounts Receivable 22,000

Building 215,000 Accrued Expenses 9,000

Cash 15,000 Short-term Notes Payable 135,000

Equipment 76,000 Common Stock 1,000

Prepaid Expenses 12,000 Accumulated depreciation 92,000

Sales 123,000 Storage of Grain 2,000

Depreciation Expense 18,000 Unearned Revenue 8,000

Cost of Goods Sold 75,000

Long term Investments 100,000

Inventory 79,000 Short Term Investments 50,000

Interest Payable 1,000 Long Term Debt 150,000

Prepare a balance sheet in proper format for the company as of December 31st
Lesson #9: Cash Flow
Name: Monica Fowlkes Date: April 5, 2018
Area: Ag Business
Job: Creating a Cash Flow Statement
Situation:
We have just started into the financial part of the business plan. Students have completed the
written portion except for the executive summary.

Standards: CV 12.3.1, 3.3, 5.2

Targets/Questions/Objectives:
Students will identify income and expenses on a given list of transactions.
Students will create their own cash flow statement based on the business they have created.

References and Resources for Lesson:

Sba.org, Mrs. Latham’s Curriculum
Materials Needed:
Cash flow chart, Income and expenses list,

Plan of Action (Time included):

Review Balance Sheet: 5 minutes: I will be asking students about the balance sheet as a
review. I will be able to see if they retained any information from the day before by asking
questions such as: what are current/ non-current assets/liabilities? What is a balance sheet?
What is net worth? What is owner’s equity?
Introduction to Cash Flow: 5 minutes: I will give students a little background on what a cash
flow statement is and why we would use it in the business.
Income and expenses sheet: 5 minutes: I will have students go through and label the
different pieces of equipment as income and expenses. Once they have completed that we will
throw the prices into the cash flow statement.
Cash Flow Statement: 20 minutes: Students will use the income and expenses sheet given to
them and put those values into the cash flow statement.
Build your own: 20 minutes: Based on the knowledge from the example cash flow students
will be given the opportunity to work on their own cash flow statement for their business.

Knowledge/Skills/Dispositions targeted on this lesson:

Knowledge: Income and expenses, cash flow through a business

Skills: Identification of income and expenses, understanding cash flow of business
Dispositions: Confusion, frustration
Assessment Plan – What did students learn? How do you know?

Example Cash Flow statement. I will have students create a cash flow statement based on a
list of income and expenses. I will be able to see if students comprehend what we are going
over if they complete the example cash flow statement correctly.

Attached:
 Content
 Activity
 Assessment




Lesson #10: Profit/Loss Statement
Name: Monica Fowlkes Date: April 10, 2018
Area: Ag Business
Job: Creating a Profit/Loss Statement
Situation: This will be the last of the financial part of the business plan. This will tie
together all of the other parts of the business that we have gone over. The last and final
step of this unit will be the summary of everything.
Standards: CV 12.3.1, 3.3, 5.2
Targets/Questions/Objectives:
Students will create a profit/loss statement to show understanding of the concept.

References and Resources for Lesson:

sba.org
Materials Needed:
profit/loss blank sheet, pencil, scenario

Plan of Action (Time included):

Review on Cash Flow: 5 minutes: This will be the opportunity for students to ask any
questions they may have on the cash flow statement from yesterday. I know some students
struggled with the cash flow so I want to make sure they understand how it is done.

Introduction to Profit/Loss Statement: 5 minutes: I will introduce students to a profit loss

statement and give them the basic background knowledge of what will be put into them.

Practice Profit/Loss Statement: 15 Minutes: I will give students a scenario that they will have
to go through on their own. After each student has completed the profit/loss statement then we
will go over it as a group to see what the students understand and what they are struggling
with.

Application to own Business: 25 minutes: Students will use this time to start on their
profit/loss statements for their own personal businesses.

Knowledge/Skills/Dispositions targeted on this lesson:

Knowledge: How to use a profit/loss statement
Skills: Application of abilities
Dispositions: Frustration, Struggle
Assessment Plan – What did students learn? How do you know?
Practice Profit/Loss: I will be able to determine what students understand based on what
parts of the scenario they put into the different sections of the profit/loss statement.

Attached:
 Content
 Activity
 Assessment
 Scenario
 Profit/Loss Sheet
Objective: Students will create a profit/loss statement to show understanding of the
concept.
Greg runs his own garden and house maintenance service business. Calculate the profit
or loss made in 2015. 1. His total sales revenue for the year was $55,350. His expenses
included wages to his part time employee of $10,000. His motor expenses total $3,250.
Insurance costs $250. Telephone and internet is $120. Fuel for equipment is $200.
Payment to his accountant is $700. Advertising $450. He rents a garage from a neighbor
to store his equipment and this costs $400 per month.

Income $ $

Total Income

Expenses

Total Expenses

Profit/Loss
 Company Name
Address
Phone Number
Email
Profit & Loss Statement
For the period ended____________________

Income FY 2018 FY 2019 FY 2019

Total Income

Expenses

Total Expenses

Profit/Loss