M3 SL Review
Summative Activity
Teacher: Mr. Kellogg
Date: 11/19/25 or 1/20/25
For this activity you will work independently, need to select a PUBLIC company, and
claim it on the whiteboard. You will use this company for all parts of this activity.
Part 1 - Definitions
For this part you will define 5 finance terms from IB Business SL. After each definition,
use your company and add a sentence example specifically related to your company.
For example, you could define external sources of finance and give a specific example
of an external source that your company received and why they used it.
Part 2 - Break Even
For this part, you will assume that the company you chose is coming out with a new
product. You will come up with a name for the new product and will make up numbers
for the following things:
1.) Price
3.) Total Fixed Costs
2.) Average variable cost to produce each product
4.) Level of Demand
Using this information you will calculate the Break Even Quantity, Margin of Safety, and
will make a break even chart with all information on it.
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Part 3 - Profit and Loss (AKA Income Statement) OR
Balance Sheet
For this, you will need to find your company's Statement of Income or Statement of
Operations which will be the Profit and Loss Sheet OR you can find their balance sheet.
You will take those numbers from that sheet and put them into IB format and
terminology. You choose to do only ONE of these final accounts. You will notice
terminology may be slightly different and I do not expect EVERY item from the
company’s statement to be on the IB version so you may have to recalculate some
numbers as you make the sheet (Using Excel or Google Sheets can make these
calculations go faster)
Part 4 - Ratios
For this, you will complete either profitability ratios or liquidity ratios. If you choose to
do profitability ratios, you will complete the Gross Profit Margin and Net Profit Margin
for the most recent year on their financial documents. If you choose liquidity you will
calculate both the current ratio and the acid test ratio for the most recent year. USE
THEIR FINANCIAL STATEMENTS, DO NOT use prediscovered numbers online.
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