WebQuest - Operating Budget

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A WebQuest designed for high school accounting students to demonstrate understanding of a P&L statement

A WebQuest designed for high school accounting students to demonstrate understanding of a P&L statement

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  • 1. Restaurant Operating Budget Student Page Title Introduction Task Process Evaluation Conclusion Credits [ Teacher Page ] A WebQuest for 12th Grade – Accounting 101 Designed by Laurie Lebruska [email_address] Based on a template from The WebQuest Page
  • 2. Introduction Student Page Title Introduction Task Process Evaluation Conclusion Credits [ Teacher Page ] Congratulations! You have just graduated college with a B.S. in Accountancy! Your father would like to relinquish some of the owner duties in his twenty-year-old Italian restaurant. He has asked you to create an operating budget for the following fiscal year. Working with you on this project are two current employees: the part-time bookkeeper and the restaurant general manager. The net income derived is important as it will determine what, if any, capital projects can be completed.
  • 3. The Task Student Page Introduction Task Process Evaluation Conclusion Credits [ Teacher Page ]
    • As the new co-owner of your family’s Italian restaurant, you will be working with two employees to generate the next fiscal year’s budget.
    • The part-time bookkeeper: He/she records the day-to-day monetary transactions. They will assist you in capturing all the income & expense accounts related to operating the restaurant.
    • The general manager: He/she is knowledgeable about all aspects of the restaurant, including finances. They will detail budget item amounts such as service contracts, salaries, cost of sales, and general operating expenses.
    • Your task is to prepare an annual operating budget to present to the owner, your father, for the following year. You are responsible for the Income portion of the budget. This budget is a useful tool to determine where excess income will be used.
    Title
  • 4. The Process Student Page Title Introduction Task Process Evaluation Conclusion Credits [ Teacher Page ] Step 1 : Within your assigned groups of three, decide who will be the recent college graduate, the restaurant general manager, and the bookkeeper. Step 2 : Together, create a name and location for the Italian restaurant to be used on all submissions and determine the fiscal year (i.e. calendar year?, July to June?) for the operating budget. Step 3 : The recent college graduate needs to create a general P&L template and insert the Income. The following web sites can be useful: www.money.aol.com www.business.com www.foxway.com Step 4 : The bookkeeper needs to capture the income & expense categories for the restaurant industry. At a minimum, they should include Sales, Cost of Sales, Payroll, Operating Expenses, and Utilities. Two or three detailed items under each general category should be itemized. Helpful web sites are: www.restaurant-accounting.info.com www.rrgconsulting.com Step 5 : The GM needs to create a payroll budget to include himself, the p-t bookkeeper, (2) chefs, (8) wait staff, (3) bartenders, and (2) busboys. 25% payroll tax should be used and 15% W/C insurance. Average pay scales can be found on: www.monster.com www.vault.com/salary www.payscale.com The current year’s income is projected at $1.5 million; use a 3% increase for the budget. Cost of sales is 25% of income (include detailed categories). Service contracts (i.e. Laundry, Cleaning) are 2% of income. Step 6 : Once the GM and bookkeeper gather their information, the co-owner must generate a P&L budget statement in Excel with an accurate Net Income number. Calculations must be correct. Each category should be in its proper place with appropriate subtotals. Step 7 : Prepare a report cover with the information from Step 2 and Step 6 , along with group member names for teacher submission. Submit with budget and narrative explaining totals in each category.
  • 5. Evaluation Example: Student Page Title Introduction Task Process Evaluation Conclusion Credits [ Teacher Page ] Beginning 1 Developing 2 Accomplished 3 Exemplary 4 Score Thinking process Disconnected and unrelated thoughts; simple ideas; no additional web sites utilized Concrete descriptions; no analysis of causes; minimal use of additional web sites Integrates multiple sources of information to assess issue; demonstrates good level of understanding financial statements Critical analysis of task; thorough understanding of financial statements; numerous resources utilized for problem solution 25 Network skill Student has problems bringing up Web pages Text is in a program other than the word processor; Images not saved in .gif or .jpg Efficient use of Internet access programs; Text is word processed with minimal errors Excellent use of Internet access programs; Web pages utilized as backup documentation for generating budget numbers; Text is word processed without errors 25 Writing process Difficult to understand; spelling and other errors Many errors but consistent line of thought Easy to understand; perfect spelling; one or two grammar, syntax, or semantic problems Clear, concise, well written 15 Calculations Budget does not total correctly; no understanding of P&L concept Displays moderate understanding of P&L; one or two calculating errors in budget Moderate understanding of P&L in relation to other financial information; no calculation errors Thorough understanding of P&L; formulas used to verify totals are accurate 25 Layout Layout has no structure or organization Proposal includes cover sheet, budget, and narrative; no images or differentiating fonts, etc. Consistent headings and styles within pages; Text and Excel sheet flow together Consistent format extends page-to-page; creative graphics used for cover page; neat, uncrowded layout 10
  • 6. Conclusion Student Page Title Introduction Task Process Evaluation Conclusion Credits [ Teacher Page ] You have done it! By creating the annual budget and presenting it to the restaurant owner with your reasoning for each item amount, you have given him a useful tool. By completing this task, you have demonstrated an understanding of a P&L statement and basic accounting skills, how to put a simple business proposal together, and your ability to be neat, detailed, and accurate. All of these tools will be extremely useful in the business world, regardless of what industry within which you decide to work.
  • 7. Credits & References Student Page Title Introduction Task Process Evaluation Conclusion Credits [ Teacher Page ] Thank you to the authors of the following resources: Calculator picture: www.flickr.com by Breakmold Student research web sites: www.money.aol.com www.business.com www.foxway.com www.restaurant-accounting.info.com www.rrgconsulting.com www.monster.com www.vault.com/salary www.payscale.com Based on a template from The WebQuest Page
  • 8. Restaurant Operating Budget (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page A WebQuest for 12th Grade – Accounting 101 Designed by Laurie Lebruska [email_address] Based on a template from The WebQuest Page Evaluation Teacher Script Conclusion
  • 9. Introduction (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page This lesson was developed as a requirement for EDUC 331: Educational Technology & Assessment at Colorado State University, Fall 2007 The lesson requires students to prepare a basic operating budget for a restaurant . It demonstrates the ability of the students to understand a P&L statement along with generating a budget narrative to substantiate the numbers. These tools are useful in any business industry. Evaluation Teacher Script Conclusion
  • 10. Learners (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page This lesson is designed to be used as an enrichment activity after the Income Statement instruction in a high school basic accounting course is completed. It provides an example of a business requirement in any industry. Prior to beginning this lesson, students will need to know the following: ▪ income & expense components of a P&L statement ▪ basic accounting terminology (i.e. fiscal year, budget) ▪ how to perform Internet searches ▪ basic Excel and Word software skills Evaluation Teacher Script Conclusion
  • 11. Curriculum Standards (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page Students will engage in activities that require them to work independently and as a team. According to their task they will research web-and test-based content that will be used to create an accounting tool, the budget, for a specific industry. They will demonstrate their knowledge of Excel along with basic accounting principles, and research income and expense categories specific to the restaurant industry. By creating a narrative detailing the line items, it provides evidence to support the dollar amount budgeted. Critical thinking, inference-making and categorization skills will be utilized. The Colorado Business Education Standards of Learning Addressed are: Standards and Measures #1 Reading • Demonstrate understanding of importance of reading to career pathway • Recognizes/utilize vocabulary related to career pathway • Demonstrate comprehension of written ideas/concepts Mathematics • Demonstrate understanding of importance of math to career pathway • Perform calculations with whole numbers, percentages, decimals, and fractions • Utilize mathematics to solve problems within career pathway Technology • Demonstrate understanding of importance of technology to career pathway • Input and access data from computer • Utilize a variety of computer programs • Demonstrate understanding of issues associated with technology Thinking Skills • Demonstrate the ability to Learn, Reason, Think creatively, Make decisions, Solve problems Personal Qualities • Demonstrate Individual Responsibility, Self-Esteem, Self Management, Sociability Standards and Measures #2 Interpersonal Skills • Demonstrate ability to work on teams Standards and Measures #3 Management Skills • Demonstrate personally and within the business Decision-making skills, Goal-setting skills, Problem-solving skills, Effective use of time management, Financial management skills Technology Skills • Use the computer as a tool • Operate a calculator Evaluation Teacher Script Conclusion
  • 12. The Process (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page This project is designed to last one week. The class should be divided into groups of three. The new co-owner needs to develop a template which will be used to insert the income and expense account details as provided by the bookkeeper and general manager. The narrative should be understood by each group member, especially the co-owner as he will present the budget to his father. Step 1 : Within your assigned groups of three, decide who will be the recent college graduate, the restaurant general manager, and the bookkeeper. Step 2 : Create a name and location for the Italian restaurant to be used on all submissions and determine the fiscal year (i.e. calendar year?, July to June?) for the operating budget. Step 3 : The recent college graduate needs to create a general P&L template and create the Income accounts. The following web sites can be useful: www.money.aol.com , www.business.com , www.foxway.com Step 4 : The bookkeeper needs to capture the income & expense categories for the restaurant industry. At a minimum, they should include Sales, Cost of Sales, Payroll, Operating Expenses, and Utilities. Two or three detailed items under each general category should be itemized. Helpful web sites are: www.restaurant-accounting.info.com , www.rrgconsulting.com Step 5 : The GM needs to create a payroll budget to include himself, the p-t bookkeeper, (2) chefs, (8) wait staff, (3) bartenders, and (2) busboys. 25% payroll tax should be used and 15% W/C insurance. Average pay scales can be found on: www.monster.com , www.vault.com/salary , www.payscale.com The current year’s income is projected at $1.5 million; use a 3% increase for the budget. Cost of sales is 25% of income (include detailed categories). Service contracts (i.e. Laundry, Cleaning) are 2% of income. Step 6 : Once the GM and bookkeeper gather their information, the co-owner must generate a P&L budget statement in Excel with an accurate Net Income number. Calculations must be correct. Each category should be in its proper place with appropriate subtotals. Step 7 : Prepare a report cover with the information from Step 2 and Step 6 , along with group member names for teacher submission. Submit with budget and narrative explaining totals in each category. Variations ▪ Groups could be required to visit a restaurant owner ▪ Groups could be assigned different industries (i.e. manufacturing, medical office, real estate development) Evaluation Teacher Script Conclusion
  • 13. Resources (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page
    • In order to effectively complete the WebQuest you will need:
        • Class sets of books
        • Internet access for all students
        • Excel software
        • A printer
        • A computer for each group of students
    • The following web sites are valuable resources for this lesson:
    • www.restaurant-accounting.info.com
    • www.webquest.org
    • One teacher should be able to manage this lesson with a class of students. Separately, or as a group field trip, it may be beneficial for the students to visit an Italian restaurant. Finding one open for dinner only may allow you to visit during a lunch hour and spend time talking to the owner or manager about items specific to their industry. If there is a parent of a student who is in the restaurant industry, it may be valuable for them to speak to the class.
    Evaluation Teacher Script Conclusion
  • 14. Evaluation (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page Accounting and general skills to be demonstrated with this lesson are reading comprehension, math skills, use of Internet, Excel software and computer, low-level management skills, and the ability to reason and work as a team and individually. Project expectations are in rubric below: Evaluation Teacher Script Conclusion Beginning 1 Developing 2 Accomplished 3 Exemplary 4 Score Thinking process Disconnected and unrelated thoughts; simple ideas; no additional web sites utilized Concrete descriptions; no analysis of causes; minimal use of additional web sites Integrates multiple sources of information to assess issue; demonstrates good level of understanding financial statements Critical analysis of task; thorough understanding of financial statements; numerous resources utilized for problem solution 25 Network skill Student has problems bringing up Web pages Text is in a program other than the word processor; Images not saved in .gif or .jpg Efficient use of Internet access programs; Text is word processed with minimal errors Excellent use of Internet access programs; Web pages utilized as backup documentation for generating budget numbers; Text is word processed without errors 25 Writing process Difficult to understand; spelling and other errors Many errors but consistent line of thought Easy to understand; perfect spelling; one or two grammar, syntax, or semantic problems Clear, concise, well written 15 Calculations Budget does not total correctly; no understanding of P&L concept Displays moderate understanding of P&L; one or two calculating errors in budget Moderate understanding of P&L in relation to other financial information; no calculation errors Thorough understanding of P&L; formulas used to verify totals are accurate 25 Layout Layout has no structure or organization Proposal includes cover sheet, budget, and narrative; no images or differentiating fonts, etc. Consistent headings and styles within pages; Text and Excel sheet flow together Consistent format extends page-to-page; creative graphics used for cover page; neat, uncrowded layout 10
  • 15. Teacher Script (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page Print this page for reference. • Successful completion of Restaurant Operating Budget requires the students to have a working knowledge of the Windows operating systems, specifically Excel and Word software. • Access to a computer with Internet connection is necessary. • Set up the lesson by referring to the classroom text Income Statement samples. • Become familiar with each step of the WebQuest. • Arrange the class into groups of three. • Using a Power Point presentation, demonstrate accessing the WebQuest. • Review the responsibilities of each role. • Model the use of links to other pages and Internet sites. • Have copies of the Rubric printed out to distribute and discuss. • Give a time frame for when each process is due. • Anticipate the following questions: How detailed should each income & expense category be? Should all twelve months be broken out or can it be a yearly total? Do we make any capital improvement projections with net income? How big is the restaurant? What are its hours of operation? • Encourage creative research, such as talking to a restaurant owner or visiting a restaurant. • After assignment is complete, relate the project to real-world business experiences • Discuss with students the difficulties, pros, and cons of completing this assignment for future improvement. Solicit useful feedback. Evaluation Teacher Script Conclusion
  • 16. Conclusion (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page This lesson is a tool for applying basic accounting principles to a tangible industry with which students can relate. By expanding the lesson to include other industries, students will realize the importance of accurate accounting and how it impacts various departments within a company. Generating an operating budget from scratch reinforces the students’ understanding of Income Statement line items. Simple or more complex thinking is needed to determine amounts for payroll (total ee hours, etc.) and miscellaneous expense items. Evaluation Teacher Script Conclusion
  • 17. Credits & References (Teacher) [ Student Page ] Title Introduction Learners Standards Process Resources Credits Teacher Page Based on a template from The WebQuest Page Evaluation Teacher Script Conclusion Thank you to the authors of the following resources: Calculator picture: www.flickr.com by Breakmold Student research web sites: www.money.aol.com www.business.com www.foxway.com www.restaurant-accounting.info.com www.rrgconsulting.com www.monster.com www.vault.com/salary www.payscale.com Webquest research: http://edWeb.sdsu.edu/Webquest http://teacherweb.com www.webquest.org www.teachtheteachers.org http://coe.west.asu.edu/students/christensen/WQuest/t-webquest.html Search tools: www.altavista.com www.dogpile.com www.google.com Books: Integrating Educational Technology Into Teaching (Roblyer, 4 th ed.)