Lesson ProgressPhase 4 of 6
Phase 4Independent Practice
Independent Practice: Launch: The Investor Question
Practice Income Statement construction from journal entry data independently with minimal teacher support
Independent Practice: Make the Call
You are Sarah's advisor. Make two business decisions and watch the scoreboard change.
Sarah is at a crossroads. She has momentum from her first month with Jennifer Kim, but two decisions are on her desk right now. Each choice will move the scoreboard differently. There is no single right answer — but every answer has a consequence.
How This Works
- Read each scenario carefully.
- Choose the option you think is best for TechStart.
- See how your choice changes the scoreboard.
- After both decisions, answer the analysis questions.
Starting scoreboard:
Profit
$2,800
Solvency
Assets $22,850 = Liabilities $9,600 + Equity $13,250
Cash
$12,950
Decision 1: The Maintenance Contract
Sarah has $12,950 in the bank. A client offers to pay $4,000 upfront for a 3-month maintenance contract. But delivering the work will cost $600/month in contractor fees. Should Sarah take the deal?
Decision 2: The Credit Card Dilemma
Sarah's credit card bill is $9,600. The minimum payment is $300/month, but interest is 22% APR. She could pay $5,000 now to reduce the balance, or keep the cash for emergencies.
Business Scenario Analysis
Demonstrate your ability to interpret financial information and draw business conclusions
1. GreenTech Manufacturing shows $85,000 revenue and $95,000 expenses on their Income Statement. What does this tell investors about the business?
2. Digital Marketing Pro shows positive net income but negative operating cash flow. What does this suggest?
3. Two similar businesses both show $50,000 net income. Business A has $10,000 operating cash flow while Business B has $45,000 operating cash flow. Which is financially healthier?
0 of 3 questions answered
Independent Practice Self-Assessment
Reflect on your performance: Rate your confidence level (1-5) in these key areas:
Technical Skills
Reading Income Statement information
1
2
3
4
5
Analyzing Balance Sheet relationships
1
2
3
4
5
Understanding Cash Flow implications
1
2
3
4
5
Business Analysis
Connecting numbers to business stories
1
2
3
4
5
Making investment recommendations
1
2
3
4
5
Explaining financial health to stakeholders
1
2
3
4
5
Areas for growth: Which concepts do you want to review before the assessment phase? Consider discussing these with classmates or asking questions during tomorrow's session.