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Applied Business Math

Course Number: BA 104
Transcript Title: Applied Business Math
Created: May 12, 2014
Updated: August 20, 2014
Total Credits: 4
Lecture Hours: 40
Lecture / Lab Hours: 0
Lab Hours: 0
Satisfies Cultural Literacy requirement: No
Satisfies General Education requirement: No
Grading options: A-F, audit

Prerequisites

WR 115, RD 115, MTH 20 or equivalent placement test scores

Course Description

Presents a variety of problems and situations found in business where arithmetic is constantly used.  Prepares students to use mathematics in solving monetary and valuation problems in business and personal finance.  Prerequisites: WR 115, RD 115, and MTH 20 or equivalent placement test scores. Audit available.

Intended Outcomes

Upon successful completion of this course, students will be able to:

  1. Express and manipulate numbers effectively to solve business problems.
  2. Compute trade and cash discounts using whole numbers, fractions and decimals.
  3. Determine accurate inventory values and corresponding accounting valuations using different valuation methods.
  4. Calculate simple interest, compound interest and present values using appropriate applications methods to professional standards.
  5. Create reliable depreciation of asset values using various accounting methods.
  6. Use the appropriate statistical terms, summarize and clarify business data.

Outcome Assessment Strategies

  • Attendance
  • Class participation
  • Group projects
  • Portfolio(s)
  • Homework assignment(s)
  • Written paper(s)
  • Quiz (zes)
  • Take-home examinations
  • Exam(s)

Course Activities and Design

This course will be presented through lecture, demonstration, discussion, and or participation type sessions.

Course Content (Themes, Concepts, Issues and Skills)

Themes:

  1. Number sense
  2. Problem solving
  3. Business applications, formulas, and modeling
  4. Alternative solutions and analysis
  5. Critical thinking
  6. Effective communication

Concepts, Issues, and Skills:

  1. Solve business story problems
  2. Read, write, and round whole numbers
  3. Add, subtract, multiple, divide, and use exponents in their proper sequences
  4. Identify, convert, reduce, and raise fractions
  5. Add, subtract, multiply, and divide fractions
  6. Read, add, subtract, multiply, divide, and reduce decimals and then convert to fractions
  7. Solve equations using addition, subtraction, multiplication, and division
  8. Find increases and decreases in amounts and percentages in common problems
  9. Find the mean, median, mode, and ranges using non-business and business data
  10. Solve single and series trade discount problems
  11. Find and solve cash discount and net amounts using ordinary dating terms
  12. Find and compute markups based upon cost, selling price or percentages of cost or selling price
  13. Compute markdowns, reduced prices, desired profits on perishable and seasonal goods
  14. Compute gross payroll for various types of compensation methods
  15. Tabulate payroll tax withholdings and next pay based upon social security and Medicare tax laws
  16. Compute employer’s Federal Unemployment Taxes and State Unemployment Taxes
  17. Find simple interest
  18. Find the maturity value and maturity date of a loan
  19. Find the principal, rate, or time using the simple interest formula
  20. Determine exact time, interest rate, and actuarial interest costs
  21. Calculate the partial payment benefit amount before the maturity due date
  22. Fine the true or effective interest rate of a simple discounted note
  23. Find the future value and compound interest by compounding manually and by using a table
  24. Find the interest amount compounded using a table
  25. Find the present value based on annual compounding with and without a table
  26. Find the future value of an ordinary annuity
  27. Find the present value of an ordinary annuity
  28. Compute simple Bond valuations
  29. Determine the rates and calculate the monthly or quarterly payments of a mortgage
  30. Prepare a partial amortization schedule of a mortgage
  31. Using the Specific Identification, Weighted-Average, FIFO, and LIFO methods determine ending inventory values and the corresponding Cost OF Goods Sold amounts
  32. Depreciate assets using the Straight-Line, Units-of Production/Output, and the Declining Balance methods
  33. Depreciate an asset using the Modified-Accelerated-Cost-Recovery-System (MACRS) per the tax code
  34. Determine the sales tax and excise tax amounts and total selling prices
  35. Calculate property tax amounts using tax rates
  36. Prepare vertical analysis and horizontal analysis of a Balance Sheet
  37. Prepare vertical analysis and horizontal analysis of an Income Statement

Department Notes

Emphasis on business topics and areas where the situation involves using arithmetic to solve business problems or function efficiently. Business applications topics include markups and markdowns, trade and cash discounts, gross and net payroll and payroll taxes, simple interest, present value and future value, concepts and applications of annuities and sinking funds, various inventory valuations, applying different depreciation methods to business assets, mortgages balances and methodologies, and computations using statistical functions.