Module Five Activity Guidelines and Rubric - FIN-320-X1207 Principles of Finance 22EW1
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Southern New Hampshire University *
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Course
1
Subject
Finance
Date
Nov 24, 2024
Type
Pages
2
Uploaded by Barbara8289
Overview
Organiza
!
ons must manage their working capital management to meet their short-term obliga
!
ons. It's important to consider working
capital problems such as excess credit or a low cash balance. This is especially important when you propose new projects or
investments. A business can get a compe
!!
ve advantage in the marketplace if they manage these issues early.
Direc
!
ons
Look at the business you selected for Project Two and the financial statements for the most recent fiscal quarter. Complete the
calcula
!
ons for determining working capital. Then tell how the financial statements help determine financial health.
Specifically, you must address the following rubric criteria:
Financial Statements
: Explain the various financial statements needed to calculate a business’s working capital. Also explain
how to use each financial statement for the calcula
!
on. Give examples to support your claims.
Working Capital’s Role
: Discuss how businesses that manage their working capital well stay healthy.
Working Capital Interpreta
!
on
: Use the correct formula to calculate working capital. Then discuss the business’s current
financial liquidity posi
!
on.
For example, does the business have enough working capital ready to address bills to suppliers? Will there be poten
!
al
cash inflow at the end of the year?
Working Capital Management Trend
: Discuss the business’s trend in how they manage their working capital.
Remember that financial statements reflect a specific period of !
me and the value of the business’s working capital
during that period. Use Mergent Online to find financial statements for earlier periods. This will give you a be
"
er sense
of the business’s trend.
What to Submit
Your submission should be a 2- to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch
margins. Any sources should be cited according to APA style.
Module Five Ac
!
vity Rubric
Criteria
Proficient (100%)
Needs Improvement (70%)
Not Complete (0%)
Value
Financial
Statements
Explains the various financial
statements needed to
calculate a business’s
working capital and how each
statement is used and gives
examples to support claims
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
explaining in more detail the
various financial statements
needed to calculate a
business’s working capital
and how each statement is
used or giving more examples
to support claims
Does not a
"
empt criterion
15
Working Capital’s
Role
Discusses how businesses
that manage their working
capital well stay healthy
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
discussing in more detail how
businesses that manage their
working capital well stay
healthy
Does not a
"
empt criterion
20
Working Capital
Uses the correct formula to
Shows progress toward
Does not a
"
empt criterion
20
!
"
Interpreta
!
on
calculate working capital and
discusses the business’s
current financial liquidity
posi
!
on proficiency, but with errors or
omissions; areas for
improvement may include
using the correct formula to
calculate working capital or
discussing in more detail the
business’s current financial
liquidity posi
!
on Working Capital
Management Trend
Discusses the business’s
trend in how they manage
their working capital
Shows progress toward
proficiency, but with errors or
omissions; areas for
improvement may include
discussing in more detail the
business’s trend in how they
manage their working capital
Does not a
"
empt criterion
25
Ar
!
cula
!
on of
Response
Clearly conveys meaning with
correct grammar, sentence
structure, and spelling,
demonstra
!
ng an
understanding of audience
and purpose
Shows progress toward
proficiency, but with errors in
grammar, sentence structure,
and spelling, nega
!
vely
impac
!
ng readability
Submission has cri
!
cal errors
in grammar, sentence
structure, and spelling,
preven
!
ng understanding of
ideas
20
Total: 100%
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