FIN 320 Module Five Activity
Module Five Activity Guidelines and Rubric.html
FIN 320 Module Five Activity Guidelines and Rubric
Overview
Organizations must manage their working capital to meet their short-term obligations. 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 competitive advantage in the marketplace if it manages these issues early.
Directions
Look at the business you selected in Final Project Milestone One and its financial statements for the most recent fiscal quarter. Complete the calculations 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 calculation. Give examples to support your claims.
- Working Capital’s Role: Discuss how businesses that manage their working capital well stay healthy.
- Working Capital Interpretation: Use the correct formula to calculate working capital. Then discuss the business’s financial liquidity position at this time.
- For example, does the business have enough working capital ready to address bills to suppliers? Will there be potential 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 time and the value of the business’s working capital during that period. Use Mergent Market Atlas to find financial statements for earlier periods. This will give you a better sense of the business’s trend.
What to Submit
Your submission should be a 2- to 3-page Microsoft Word document with 12-point Times New Roman font, double spacing, and one-inch margins. All sources should be cited using APA style.
AI Usage
If you use gen AI tools to support your work on this assignment, be sure to follow these AI usage guidelines. You must acknowledge your use of these tools in your work. Guidelines on how to cite AI tools can be found in this Shapiro Library guide.
Module Five Activity Rubric
| Criteria | Meets Expectations (100%) | Partially Meets Expectations (70%) | Does Not Meet Expectations (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 meeting expectations, 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 attempt criterion | 15 |
| Working Capital’s Role | Discusses how businesses that manage their working capital well stay healthy | Shows progress toward meeting expectations, 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 attempt criterion | 20 |
| Working Capital Interpretation | Uses the correct formula to calculate working capital and discusses the business’s current financial liquidity position | Shows progress toward meeting expectations, 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 position | Does not attempt criterion | 20 |
| Working Capital Management Trend | Discusses the business’s trend in how they manage their working capital | Shows progress toward meeting expectations, 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 attempt criterion | 25 |
| Clear Communication | Consistently and effectively communicates in an organized way to a specific audience | Shows progress toward meeting expectations, but communication is inconsistent or ineffective in a way that negatively impacts understanding | Shows no evidence of consistent, effective, or organized communication | 20 |
| Total: | 100% |