Authentic Learning Task (ALT) #2: Income and Expenses

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Overview

In this Authentic Learning Task (ALT), you are introduced to the concept and necessity of an income statement. You construct an inventory of your personal income and expenses (or a fictional inventory), summing the valuation in each category. You then calculate personal retained earnings. Finally, in teams, you construct and present an income statement for the startup business, Harry's Hot Dog Stand.

After completing this ALT, you should be able to demonstrate the following competencies:

• Recognize the basic elements of financial reporting
  (Comp. 1).
• Interpret basic financial data and reports (Comp. 2).
• Provide input to and use the results of activity based accounting and/or financial tracking systems (Comp. 3).
• Use financial principles to manage projects, budgets, and processes (Comp. 4).

Materials and Equipment
No materials or equipment are needed to complete this ALT.

Safety and Disposal
No special safety or disposal procedures are required.

Pre-Activity

To prepare for the activity:

• Complete a learning object about savings and spending.

Self Assessment

Calculate your personal income and expenses.

Activity

In your team, perform the following steps to complete the activity:

1. Individually complete Data Sheet: Personal Income Statement.
2. In your team, complete the tasks on Instruction Sheet: Income and Expenses at Harry's Hot Dog Stand.

Post-Activity

Your team should now post its results from the activity to the Discussion Board.

Assignment
There are no instructions to prepare for ALT #3: Basic Cumulative Summary Charts.

Assessment
Your facilitator may use Assessment Sheet: Income and Expenses to evaluate your results from the activity and your posting to the Discussion Board.

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