Microsoft Word - SA 4 Financial Planning and Control_ XXXXXXXXXXdocx Financial Planning and Control Summative Assessment: Outline & Rubric Summative Assessment Outline Financial Planning and Control...

Microsoft Word - SA 4 Financial Planning and Control_ XXXXXXXXXXdocx
Financial Planning and Control Summative Assessment: Outline & Ru
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Summative Assessment Outline
Financial Planning and Control

Competency Name: Financial Planning and Control
Competency Statement: Demonstrate knowledge and application of the 3 key steps of financial planning – 1 forecasting the firm’s
short-term and long-term financial needs; 2 developing budgets to meet those needs, and 3 establishing financial controls to see if
the company is achieving its goal.
Summative Assessment Submission Title: Financial Planning and Control Accounting Problems
Competency Objectives:
1. Develop a forecast of short- and long-term financing needs and pro forma financial statements.
2. Prepare a budget and use variance analysis to evaluate performance.
3. Demonstrate knowledge of standard costing and variances.
4. Perform profitability and cost analyses of businesses and business segments.
5. Construct a balanced scorecard for strategic planning and control purposes considering both quantitative and qualitative
data.
Program Learning Outcomes: N/A
Institutional Learning Outcomes: N/A


Purpose of this Assessment

The final assessment for this competency is to complete a series of comprehensive financial accounting problems that address
udgeting, forecasting, standard costing, variance analysis, profitability, and cost analysis using a balance scorecard.



Items Required for Submission


A comprehensive solution set to a selection of managerial accounting problems that involve:
• Preparing Forecasting/Proforma Statements
• Preparing Capital Budgets
Financial Planning and Control Summative Assessment: Outline & Ru
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• Generating Operating Budgets
• Demonstrating a knowledge of standard costing and variances
• Performing profitability and cost analyses of businesses and business segments
• Constructing a balanced scorecard for strategic planning and control purposes, considering both quantitative and qualitative data


Step ONE: Preparation

In order to prepare for this assignment, it is important to carefully review the entire scenario for each problem found in Appendix A.
When reviewing each problem, the following questions should be considered:

1. What possible tasks are required?
2. What you will need to complete the problem?
3. What formulas will you need?
4. What resources from this competency might you reference to successfully complete this problem?
5. Think about possible plans of action for what steps you will take—what strategies will you use to tackle each problem?


Step TWO: Perform Calculations & Explain Methods

For each problem (found in Appendix A):

1. Use your plan of action to solve each problem, clearly outlining the procedures used, providing a concise explanation of each
step, labeling relevant formulas, and showing worked out calculations and complete solutions. You may use an Excel
spreadsheet or a calculator to help you perform the necessary calculations, but all co
esponding work must be shown
completely.

2. Answer all questions posed in the problem; if applicable, analyze and evaluate your results and provide a contextual explanation
of the solutions you obtained.

3. Review your calculations and solutions and make sure that an external viewer would be able to follow your methodology and
make sense of your calculations and co
esponding explanations. Make certain that you have completed all steps of each
problem.
Financial Planning and Control Summative Assessment: Outline & Ru
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Step THREE: Complete Checklist for Submission
Before you submit, check to see if you believe you have met the criteria noted below.
Did you….
ü Answer all parts of each question completely and accurately?
ü Provide clear and accurate steps, calculations, and solutions?
ü Include an insightful analysis and evaluation of results where relevant?
ü Provide a comprehensive and accurate description of each of the four areas of a balanced scorecard, an accurate and clear definition of a
key performance indicator (KPI), and meaningful real world examples of KPIs for each balanced score card area?
Step FOUR: Submit Your Work
• Your completed final assessment documents should be submitted through the Final Assessment page of your competency.
Financial Planning and Control Summative Assessment: Outline & Ru
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Scoring Ru
ic for Summative Assessment:
Criterion EMERGING (1) DEVELOPING (2) PROFICIENT (3) EXEMPLARY (4)
Forecasting / Pro forma
Statements
Does not answer all parts
of each question
completely and provides a
weak analysis and
evaluation of results where
applicable.
Partially answers all parts
of each question
completely and accurately,
showing and explaining all
steps, calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Mostly answers all parts of
each question completely
and accurately, showing
and explaining all steps,
calculations, and solutions
clearly and insightfully
analyzing and evaluating
esults where applicable.
Answers all parts of each
question completely and
accurately, showing and
explaining all steps,
calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Capital Budgets Does not answer all parts
of each question
completely and provides a
weak analysis and
evaluation of results where
applicable.
Partially answers all parts
of each question
completely and accurately,
showing and explaining all
steps, calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Mostly answers all parts of
each question completely
and accurately, showing
and explaining all steps,
calculations, and solutions
clearly and insightfully
analyzing and evaluating
esults where applicable.
Answers all parts of each
question completely and
accurately, showing and
explaining all steps,
calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Operating Budgets Does not answer all parts
of each question
completely and provides a
weak analysis and
evaluation of results where
applicable.
Partially answers all parts
of each question
completely and accurately,
showing and explaining all
steps, calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Mostly answers all parts of
each question completely
and accurately, showing
and explaining all steps,
calculations, and solutions
clearly and insightfully
analyzing and evaluating
esults where applicable.
Answers all parts of each
question completely and
accurately, showing and
explaining all steps,
calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Standard Costing and
Variances
Does not answer all parts
of each question
completely and provides a
weak analysis and
Partially answers all parts
of each question
completely and accurately,
showing and explaining all
Mostly answers all parts of
each question completely
and accurately, showing
and explaining all steps,
Answers all parts of each
question completely and
accurately, showing and
explaining all steps,
Financial Planning and Control Summative Assessment: Outline & Ru
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evaluation of results where
applicable.
steps, calculations, and
solutions clearly, and
insightfully analyzing and
evaluating results where
applicable.
calculations, and solutions
clearly, and insightfully
analyzing and evaluating
esults where applicable.
calculations, and
solutions clearly, and
insightfully analyzing and
evaluating results where
applicable.
Profitability and Cost
Analysis

Does not answer all parts
of each question
completely and provides a
weak analysis and
evaluation of results where
applicable.
Partially answers all parts
of each question
completely and accurately,
showing and explaining all
steps, calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Mostly answers all parts of
each question completely
and accurately, showing
and explaining all steps,
calculations and solutions
clearly, and insightfully
analyzing and evaluating
esults where applicable.
Answers all parts of each
question completely and
accurately, showing and
explaining all steps,
calculations, and
solutions clearly and
insightfully analyzing and
evaluating results where
applicable.
Balanced Score Card

Provides a limited
description of each of the
four areas of a balanced
scorecard, an inadequate
definition of a KPI, and
eal world examples of
KPIs that do not align to
each balanced score card
area.
Provides a mostly
accurate description of
each of the four areas of a
alanced scorecard, a
somewhat accurate
definition of a KPI, and
somewhat relevant real
world examples of KPIs for
each balanced score card
area.
Provides an accurate
description of each of the
four areas of a balanced
scorecard, an accurate
definition of a KPI, and
elevant real world
examples of KPIs for each
alanced score card area.
Provides a
comprehensive and
accurate description of
each of the four areas of
a balanced scorecard, an
accurate and clear
definition of a KPI, and
meaningful real world
examples of KPIs for
each balanced score card
area.


Appendix A: Managerial Accounting Problems

Problem #1: Proforma Statements

Prepare a common size income statement given the following information:

Revenues = $100,000
COGS = $43,000
SG&A = $22,000
Depreciation = $10,000
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Interest Owed = $5,000
Tax Rate = 40%

Problem #2: Proforma Statements

Prepare a pro forma income statement from the data and common size income statement from #1, assuming that the sales will grow by
5% and all expenses but interest and taxes will scale with sales.

Problem #3: Capital Budgets

Rambus Inc. would like to purchase a production machine for $325,000. The machine is expected to have a life of three years, and a
salvage value of $50,000. Annual maintenance costs will total $12,500. Annual savings are predicted to be $112,500. The company's
equired rate of return is 12%.

Required:
Ignoring the time value of money, calculate the net cash inflow or outflow