Direct Accounting for Startups: Eagle Lather Soap Budgeting
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Direct Accounting for Startups: Eagle Lather Soap Budgeting

Grade 11Math10 days
The 'Direct Accounting for Startups: Eagle Lather Soap Budgeting' project engages 11th-grade students in developing a comprehensive budget plan for a startup soap company, Eagle Lather. Students explore fundamental components of business budgeting, analyze various sources of capital, identify fixed and variable costs, and apply mathematical concepts to solve financial problems. Through activities like game shows and pitch presentations, students enhance their understanding of financial terminology and entrepreneurial finance, culminating in a detailed budget plan including income statements, balance sheets, and cash flow statements.
BudgetingEntrepreneurshipFinancial LiteracyMathematical ConceptsCapital SourcingFixed and Variable CostsFinancial Terminology
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Inquiry Framework

Question Framework

Driving Question

The overarching question that guides the entire project.How can we, as directors of accounting for a startup like Eagle Lather, develop a comprehensive budget plan that effectively demonstrates the potential for financial growth and stability, ensuring it meets the requirements for securing necessary financing from various sources?

Essential Questions

Supporting questions that break down major concepts.
  • What are the fundamental components of a budget and why are they important for securing financing for a startup company?
  • How do various sources of capital influence the financial planning and stability of a new business?
  • In what ways do fixed and variable costs impact the budgeting process for Eagle Lather?
  • What role do financial reports play in the decision-making processes of business financial management?
  • How does understanding financial terminology contribute to effective communication within and outside a business?
  • What mathematical concepts are crucial for developing financial strategies within a business context?

Standards & Learning Goals

Learning Goals

By the end of this project, students will be able to:
  • Students will understand and apply the components of a business budget, including fixed and variable costs, to develop a financial plan for a startup.
  • Students will evaluate and choose suitable sources of capital for a startup, considering different financing options.
  • Students will comprehend and use financial terminology accurately in discussing and developing financial reports.
  • Students will develop a comprehensive budget plan, including income statement, balance sheet, and cash flow statement, demonstrating financial knowledge.
  • Students will solve systems of equations and inequalities, applying these mathematical concepts to real-world financial problems.

Financial Literacy & Entrepreneurship

FIN-ORG-1
Primary
Gather, evaluate, and share information on the processes, strategies, and systems needed to guide the financial organization of an entrepreneurial entity.Reason: The project involves creating a comprehensive budget plan for a startup, which requires students to gather, evaluate, and organize financial information.
FIN-CAP-2
Primary
Discuss, compare, and contrast sources of capital used by entrepreneurs.Reason: Students need to understand different sources of capital as they work on securing financing for the startup.
FIN-COST-3
Primary
Identify fixed and variable costs and tax liability for startup and maintenance of a business.Reason: Identifying costs is crucial to managing the budget for a startup, which is a key part of the project.
FIN-TERM-4
Primary
Explain the terminology used in financial reports.Reason: Understanding and using financial terminology is crucial for developing the budget and communicating financial plans.
FIN-BUD-5
Primary
Create a tentative budget for a proposed business and explain the purpose of each component, including income statement, balance sheet, and cash flow statement.Reason: The core activity of the project is to develop and explain a comprehensive budget plan for a startup business.

Common Core Mathematics Standards

MATH-ALG-6
Secondary
Solving systems of equations and inequalities and applying equations in real-world problem-solving.Reason: The mathematical concepts necessary for financial strategic planning are embedded in solving equations and inequalities.

Entry Events

Events that will be used to introduce the project to students

Budgeting Game Show

Students participate in a lively game show format where they answer questions and make decisions related to entrepreneurial finance. Points are earned for correct budget allocations, understanding financial terminology, and solving equations efficiently. This format promotes engagement through competition and teamwork.

Shark Tank Junior: Pitching to Investors

Invite local entrepreneurs or business professionals to act as 'sharks' while students present their initial soap company budgets. This replicates a real-world pitch scenario, compelling students to think like entrepreneurs and financiers. The event fosters critical dialogue about budget components and the realities of startup financing.
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Portfolio Activities

Portfolio Activities

These activities progressively build towards your learning goals, with each submission contributing to the student's final portfolio.
Activity 1

Entrepreneurial Finance Foundations

Students explore basic financial concepts and the role of financial organization in entrepreneurial ventures.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Introduce the fundamentals of financial organization and its importance in entrepreneurship.
2. Discuss the significance of financial planning and budgeting in starting a business.
3. Explore different types of financial reports commonly used in business.

Final Product

What students will submit as the final product of the activityA summary essay outlining the importance of financial organization in entrepreneurship and the types of financial reports used.

Alignment

How this activity aligns with the learning objectives & standardsAligns with FIN-ORG-1 by enabling students to gather and understand foundational financial concepts necessary for entrepreneurial finance.
Activity 2

Capital Expedition

Students research and compare different sources of capital available to entrepreneurs.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Form groups to research various sources of capital such as loans, investors, crowdfunding, etc.
2. Evaluate the pros and cons of each capital source for starting a business.
3. Create a presentation comparing these sources and their potential impact on business startups.

Final Product

What students will submit as the final product of the activityA group presentation comparing different sources of capital, highlighting pros and cons for new businesses.

Alignment

How this activity aligns with the learning objectives & standardsAligns with FIN-CAP-2 by helping students analyze and compare various capital sources critical for entrepreneurship.
Activity 3

Cost Plus Analysis

Students identify and differentiate between fixed and variable costs in business budgeting.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Discuss fixed vs. variable costs and how they impact a business budget.
2. Identify typical fixed and variable costs for a business startup like Eagle Lather.
3. Calculate sample costs and devise a sample budget.

Final Product

What students will submit as the final product of the activityA detailed report explaining fixed and variable costs including a sample budget for a startup.

Alignment

How this activity aligns with the learning objectives & standardsAligns with FIN-COST-3 as students learn to identify and calculate different costs essential for business budgeting.
Activity 4

Terminology Tornado

Students familiarize themselves with financial terminology relevant to constructing and interpreting financial reports.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Collect a list of key financial terms used in reports and budgets.
2. Define each term with examples based on real-world business scenarios.
3. Create flashcards or a glossary with terms and definitions.

Final Product

What students will submit as the final product of the activityA comprehensive glossary or set of flashcards with financial terms and their definitions.

Alignment

How this activity aligns with the learning objectives & standardsAligns with FIN-TERM-4 by enhancing vocabulary and understanding of financial terms used in business contexts.
Activity 5

Budget Blueprint

Students develop a detailed budget plan for the startup company including all necessary financial statements.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Understand and draft each component of a business budget, including an income statement, balance sheet, and cash flow statement.
2. Explain the purpose and importance of each component within the budget.
3. Compile and finalize a comprehensive budget for Eagle Lather.

Final Product

What students will submit as the final product of the activityA completed budget plan including all key financial statements for the startup.

Alignment

How this activity aligns with the learning objectives & standardsAligns with FIN-BUD-5 as students create and understand every part of a comprehensive business budget.
Activity 6

Equations in Action

Students apply mathematical concepts to solve real-world financial problems related to business budgets.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Learn to formulate financial problems as systems of equations and inequalities.
2. Solve these equations to find solutions to business-specific financial issues.
3. Interpret solutions in the context of entrepreneurial finance.

Final Product

What students will submit as the final product of the activityA solved set of financial equations demonstrating application in budget scenarios.

Alignment

How this activity aligns with the learning objectives & standardsAligns with MATH-ALG-6 through solving and applying systems of equations in business finance contexts.
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Rubric & Reflection

Portfolio Rubric

Grading criteria for assessing the overall project portfolio

Eagle Lather Entrepreneurial Financial Strategy Rubric

Category 1

Financial Organization Understanding

Evaluates the students' grasp of the fundamental concepts of financial organization within entrepreneurial ventures.
Criterion 1

Foundation Knowledge

Measures the extent to which students understand the types and importance of financial reports in entrepreneurship.

Exemplary
4 Points

Demonstrates an in-depth understanding of financial organization and comprehensive knowledge of financial reports used in entrepreneurship.

Proficient
3 Points

Shows thorough understanding of financial organization and the role of financial reports in entrepreneurship.

Developing
2 Points

Displays basic understanding of financial organization with some recognition of the key financial reports used in entrepreneurship.

Beginning
1 Points

Shows minimal understanding of financial organization and limited knowledge of financial reports in entrepreneurship.

Category 2

Capital Sources Analysis

Assesses the ability to research, compare, and present different sources of capital for startups.
Criterion 1

Capital Evaluation

Evaluates how well students analyze and compare various sources of capital and their impact on startups.

Exemplary
4 Points

Provides an insightful analysis and detailed comparison, showing a sophisticated understanding of capital sources and their strategic impacts on startups.

Proficient
3 Points

Offers a thorough analysis and comparison with a clear understanding of capital sources and their impacts on startups.

Developing
2 Points

Displays a basic comparison and understanding of capital sources with limited insights into their impacts on startups.

Beginning
1 Points

Shows minimal analysis or comparison of capital sources, with little understanding of their impacts on startups.

Category 3

Cost Analysis and Budget Planning

Assesses students' ability to identify, analyze costs, and develop a comprehensive budget for a startup.
Criterion 1

Cost Identification

Measures students' competence in distinguishing and calculating fixed and variable costs for a startup budget.

Exemplary
4 Points

Accurately identifies all fixed and variable costs with precise calculations, showing exceptional budgeting skills.

Proficient
3 Points

Correctly identifies most fixed and variable costs with accurate calculations, demonstrating solid budgeting skills.

Developing
2 Points

Identifies some fixed and variable costs with basic calculations, indicating a developing budgeting capability.

Beginning
1 Points

Struggles to identify costs accurately with minimal calculation skills.

Criterion 2

Budget Development

Evaluates the ability to compile and articulate a comprehensive budget plan including all essential statements.

Exemplary
4 Points

Develops a complete, insightful budget plan with all necessary statements, showcasing an advanced understanding of financial planning.

Proficient
3 Points

Prepares a detailed budget plan that includes most of the required components, illustrating a strong understanding of financial planning.

Developing
2 Points

Creates a basic budget plan with some necessary components, reflecting emerging financial planning skills.

Beginning
1 Points

Attempts to create a budget plan with limited components, showing minimal financial planning skills.

Criterion 3

Mathematical Problem Solving

Assesses the ability to apply mathematical concepts correctly to solve business-related financial problems.

Exemplary
4 Points

Solves complex systems of equations and inequalities with exceptional accuracy, applying them effectively to real-world financial problems.

Proficient
3 Points

Successfully solves systems of equations and inequalities, applying them appropriately to financial problems.

Developing
2 Points

Solves some systems of equations and inequalities with partial application to financial problems.

Beginning
1 Points

Struggles with solving equations and inequalities, showing limited application to financial scenarios.

Category 4

Use of Financial Terminology

Evaluates students' grasp and communication of financial terminology in the context of their budget plans.
Criterion 1

Terminology Application

Assesses the accurate and effective use of financial terms within students' projects.

Exemplary
4 Points

Demonstrates expert use and understanding of financial terminology, enhancing the clarity and precision of the budget plan.

Proficient
3 Points

Uses financial terminology accurately, contributing to a clear and precise budget plan.

Developing
2 Points

Shows basic use of financial terminology with some inaccuracies in the budget plan.

Beginning
1 Points

Exhibits limited use and understanding of financial terminology, affecting the clarity of the budget plan.

Reflection Prompts

End-of-project reflection questions to get students to think about their learning
Question 1

Reflect on the process of developing a comprehensive budget plan for the startup company Eagle Lather. What challenges did you encounter, and how did you overcome them?

Text
Required
Question 2

How confident are you in your ability to explain and use financial terminology as a result of this project?

Scale
Required
Question 3

Which aspect of financial planning for a startup do you find most interesting and why?

Text
Optional
Question 4

In your opinion, which source of capital (loans, investors, crowdfunding, etc.) is best suited for a startup like Eagle Lather and why?

Multiple choice
Required
Options
Loans
Investors
Crowdfunding
Other
Question 5

On a scale of 1 to 5, how well do you understand the impact of fixed and variable costs on a business budget?

Scale
Required