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Microsoft Word - SA 4 Financial Planning and Control_20150909.docx Financial Planning and Control Summative Assessment: Outline & Rubric 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 budgeting, 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 & Rubric • 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 corresponding 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 corresponding explanations. Make certain that you have completed all steps of each problem. Financial Planning and Control Summative Assessment: Outline & Rubric 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 & Rubric Scoring Rubric 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 results 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 results 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 results 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 & Rubric 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 results 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 results 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 real 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 balanced 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 relevant real world examples of KPIs for each balanced 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 Financial Planning and Control Summative Assessment: Outline & Rubric 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 required rate of return is 12%. Required: Ignoring the time value of money, calculate the net cash inflow or outflow