JEFFERSON COLLEGE
COURSE SYLLABUS
MGT103
BUSINESS MATHEMATICS
3 Credit Hours
Prepared
by
Don Boyer
Revision Date: August 2011
by
Don Boyer
CAREER & TECHNICAL EDUCATION
Mary Beth Ottinger, Division Chair
Mgt103 Business Mathematics
I.
CATALOG DESCRIPTION
Prerequisite: none
3 semester hours credit
Business Mathematics deals with applying math to business situations. Topics covered
include trade and cash discounts, merchandise pricing, depreciation, financial statement
analysis, and simple and compound interest.
II.
EXPECTED LEARNING OUTCOMES
This course involves an examination of the mathematical skills needed and the techniques
used within the field of Business. The objectives of the course are:
Expected Learning Outcome
To develop the mathematical and
computational skills necessary for subsequent
business courses and actual business
applications.
To obtain a working knowledge of the
formulas necessary to solve problems dealing
with percentages.
To become competent in the application of
mathematics to the buying and selling of
merchandise.
To develop an understanding of the
mathematics use in determining simple and
compound interest.
To become aware of and apply the use of
financial statements in the analysis of business
problems.
To apply business mathematics to everyday life
in the role of an informed consumer.
Assessment
Students will define the impact of course
material to other course work and real world
business applications through in-class
exercises, discussions, quizzes, and exams.
Students will be able to give examples of how
the Percentage Formula is used in Business as
well as individual applications through in-class
exercises, ,worksheets quizzes, and exams
Students will place a price on products using
both cost based and retail based pricing
methods and then analyze the impact of each
through in-class exercises, worksheets,
quizzes, and exams.
Students will perform a number of calculations
with different compounding periods and then
compare those calculations to simple interest
calculations through in-class exercises,
worksheets, quizzes, and exams
Students will perform vertical, horizontal and
ratio analysis from information found on
Income Statements and Balance Sheets through
in-class exercises, worksheets, and exams
Students will be able to complete a bank
reconciliation and determine how interest is
calculated on credit cards through in-class
exercises, worksheets, and exams
III.
COURSE OUTLINE and UNIT OBJECTIVES
A.
Introduction and a review of basic mathematical calculations
1.
B.
Reading and rounding of whole numbers, review of fractions, reading and
rounding of decimal numbers, converting fractions to decimals and
converting decimals to fractions.
Bank Records
1.
2.
Explores the proper way to fill out forms used with a checking account;
the check, check register, check stub, and deposit slip.
The proper technique used to perform a bank reconciliation
C.
Review Basic Math and Bank Records
To review basic math calculations and to become familiar with the bank records
involved with a checking account:
1.
Whole numbers, fractions, decimals
2.
Checking account forms
3.
Bank reconciliation
D.
Percents and their Applications in Business
1.
2.
E.
Invoices, Trade and Cash Discounts
1.
2.
F.
Define a percent and show the relationship of percents to decimals and
fractions and how they are converted from one to another.
Define the components of the percentage formula and the correct formula
to use in order to obtain each of the components; Part, Rate, and Base.
Define trade discounts and why they are given to retailers and wholesalers.
Define the difference between single trade discounts, and chain/series
discounts and be able to calculate each type.
Define cash discounts and the components involved with cash discounts.
Be able to calculate cash discounts, determine discount periods and credit
periods. Become aware of freight terms, and how partial payments can be
used to take advantage of cash discounts.
Review Percents, Percentage Formula , Trade Discounts, and Cash Discounts
To become familiar with percents and how they are used in trade and cash
discounts:
1.
Percentage formula
2.
Single and chain discounts
3.
Cash discounts
G.
Retail Pricing, (Markup and Markdown)
1.
2.
3.
H.
Demonstrate the two different methods used by retailers, wholesalers, and
manufacturers to determine the price on their merchandise.(cost-based and
retail-based pricing).
Define markdowns and show the proper methods of calculating both onetime markdowns and a series of markdowns.
Demonstrate the method used in pricing perishable products and the
components that must be considered.
Review Retail Pricing
To learn the different methods used in pricing products and the marking down of
products:
1.
Cost-based pricing
2.
Retail based pricing
3.
Pricing perishable products
4.
Markdowns
I.
Simple Interest and Promissory Notes
1.
Define simple interest and the variables involved with simple interest.
Calculate each variable with the appropriate formula. Variables included
are interest, principal, rate, and time.
To be able to calculate simple interest, other variables of simple interest, and bank
discount:
1.
Interest
2.
Principal
3.
Rate
4.
Time
J.
Compound Interest and Present Value of Money
1.
2.
Define compound interest and how it compares to simple interest.
Demonstrate the different methods of calculating compound interest.
(formula method and table method). Define and calculate effective rate.
Define and calculate the present value of money using the table method.
To be able to calculate compound interest, effective rate and the present value of
money:
1.
Maturity value
2.
Compound interest
3.
Effective rate
4.
Present value
K.
Review Simple Interest and Compound Interest
L.
Depreciation
1.
M.
An exploration of the different methods used in determining depreciation
expense. Methods covered include: straight line, units of production, sum
of the years digits, double declining balance, modified accelerated cost
recovery system.
Review Depreciation
To become familiar with depreciation and methods used in calculating
depreciation:
1.
Straight line
2.
Units of production
3.
Sum of the years digits
4.
Double declining balance
5.
MACRS
N.
Financial Statements and Ratios
1.
2.
O.
An overview of the income statement and balance sheet and why each
statement is important to a business. Define vertical and horizontal
analysis and perform each on a financial statement.
Define financial ratios and calculate four basic ratios.
(current ratio, quick ratio, operating ratio, and gross profit margin ratio.
Review Financial Statements and Ratios
To become familiar with the income statement, balance sheet, and the information
that can be derived from each:
1.
Vertical analysis
2.
Horizontal analysis
3.
Ratio analysis
IV.
METHOD OF INSTRUCTION
A.Lecture
B.Worksheets
V.
REQUIRED TEXTBOOKS
Contemporary Mathematics for Business & Consumers, 6th. Edition,
Robert A. Brechner, South Western/Cenage Learning 2012
VI.
REQUIRED MATERIALS
Notebook, paper, pencil, calculator, folder
VII.
SUPPLEMENTAL REFERENCES
None
VIII.
METHOD OF EVALUATION
Six textbook exams
Projects
Homework assignments
Attendance
IX.
100 points each
80% of grade
20%of grade
ADA STATEMENT
Any student requiring special accommodations should inform the instructor and the
Coordinator of Disability Support Services (Library; phone 636-797-3000, ext. 169).
X.
ACADEMIC HONESTY STATEMENT
All students are responsible for complying with campus policies
as stated in the Student Handbook (see College Website,
http://www.jeffco.edu/jeffco/index.php?option=com_weblinks&catid=26&Itemid=84