Course Content Form

PIMA COMMUNITY COLLEGE

Effective Term: Full Academic Year 2018/19

BUS 151 Mathematics of Business

Credit Hours: 3.00 Lecture Periods: 3.00

Description:
Applying mathematical procedures, using algebraic techniques, critical thinking, and problem-solving methods
for practical utility in the business environment. Includes math review; bank records; payroll; trade and cash
discounts; markup and markdown; simple and compound interest; present and future value; annuities and
sinking funds; consumer credit; depreciation; inventory, overhead, and turnover; financial statements; insurance;
taxes; and stocks and bonds.

Prerequisite(s): Completion ICS 081 with a grade of B or better, module 22 in MAT 089A or 089B, or placement
into MAT 092.

Gen Ed: Meets CTE - M&S.

Course Learning Outcomes:

Upon successful completion of the course, the student will be able to:
1. Perform basic calculations to obtain the current yield of a stock and bond.
2. Demonstrate the ability to reconcile a bank statement with an account register.
3. Perform basic calculations for present value.
4. Perform basic calculations of future value.

Performance Objectives:
Upon successful completion of the course, the student will be able to:
1. Review fractions, decimals, and percent, as different forms of the same value, and convert from
any one to any other; review algebraic equations and solve for the unknown variable.
2. Reconcile a bank statement using all the steps in checking account transactions and applicable
terminology.
3. Calculate gross and net pay for salaried and hourly employees. Determine employee's required
and voluntary deductions and employer's payroll taxes.
4. List the paper sequence originating with the purchase requisition, and the conditions and
calculation of the 4 major types of discounts.
5. Solve for any one of the components of the markup equation, and the markup percent, also the
markdown and percent; demonstrate the 2 major methods to markup merchandise.
6. Compare simple and compound interest and calculate each from algebraic formulas.
7. Distinguish between present and future value of money, and their determination.
8. Calculate the future value of an annuity, and the present value of a sinking fund ordinary annuity
payment from algebraic formulas.
9. Review open and closed end consumer credit, and the factors and calculations for each.
10. Describe and perform basic calculations for the 5 major methods of depreciation and the
underlying conditions and pros and cons of each.
 11. Identify and discuss the 5 variations of inventory valuation, as well as determining inventory
turnover. Calculate overhead based on total sales of floor space occupied.
12. Review the balance sheet and income statement of a business, interpretation and use, including
pertinent financial ratios.
13. Describe the essential elements of 3 major types of insurance for a business and determination
of premiums.
14. Compare sales, property, and income taxes and essential components and calculations.
15. Review dividends, yield, P/E ratio, and total return of stocks. For bonds: interest, yield,
discount, and premium. Discuss the role in business of both.
16. Discuss optional topics as appropriate.

Outline:
I. Math Review
A. Conversion of fractions, decimals and percent
B. Solving algebraic equations
II. Bank Records
A. Checks
B. Check register
C. Reconciling a bank statement
III. Payroll
A. Income
1. Salary, wages, commissions, tips, bonuses, etc.
2. Gross income
3. Net income
B. Employee deductions
1. Required
2. Voluntary
C. Employer payroll taxes
IV. Trade and Cash Discounts
A. Purchasing
1. Requisition
2. Invoice
3. Receiving report
B. Discounts
1. Cash
2. EOM
3. ROG
4. Series
V. Markup and Markdown
A. Retail terms
1. Cost
2. Markup
3. Selling price
4. Operating expenses
5. Net profit
B. Markup equation
C. Markup on cost and/or selling price
D. Markdown
VI. Simple and Compound Interest
A. Simple interest and simple discount
 1. Define interest, rate, principal, time ordinary and exact
2. Simple interest formula
B. Compound interest
1. Compare simple and compound interest
2. Promissory notes
VII. Present and Future Value
A. Calculating and use of tables
B. Compound interest
C. Compound amount
VIII. Annuities and Sinking Funds
A. Annuities and present value
B. Sinking fund payments
IX. Consumer Credit
A. Closed end installment loans
1. Down payment
2. Finance charge
3. Total cost
4. Amount of each payment
B. Open end revolving charge account
1. Unpaid balance
2. Finance charge
3. Additional purchases
4. Monthly payment
5. New balance
X. Depreciation
A. Role in business and tax consequences
B. Terminology
1. Asset
2. Useful life
3. Total cost
4. Book value
5. Accumulated depreciation
C. Methods
1. Straight line
2. Double declining balance
3. Units of production
4. Sum-of-the-years-digits
5. ACRS
XI. Inventory, Overhead, and Turnover
A. Taking inventory
1. Periodic
2. Perpetual
B. Cost of goods sold
C. Inventory valuation methods
1. Specific identification
2. Average unit cost
3. FIFO
4. LIFO
5. Retail
D. Inventory turnover
E. Overhead
 1. Total sales
2. Unit floor space
XII. Financial Statements
A. Balance sheet definition
1. Assets
2. Liabilities
3. Owner's equity
B. Income statement definition
1. Net sales/revenue
2. Cost of goods sold
3. Operating expenses
4. Gross profit/margin
5. Net income
C. Financial statement ratios
1. Current
2. Acid test
3. Operating
XIII. Insurance
A. Terminology and role in business
B. Fire and property
C. Motor Vehicle
1. Liability
2. Comprehensive
3. Collision
4. Deductibles
D. Life
1. Term
2. Straight life
3. Endowment
XIV. Taxes
A. Sales and excise
B. Property
1. Market value
2. Assessed value
3. Tax rates
C. Income
1. Gross income
2. Adjusted gross income
3. Filing status
4. Credits
5. Exemptions
6. Deductions
7. Taxable income
XV. Stocks and Bonds
A. Stocks ownership
1. Dividends
2. Yield
3. P/E ratio
B. Bonds legal debt
1. Interest
2. Yield
 3. Discount
4. Premium
XVI. Optional Topics
A. Use of Excel or other current spreadsheet software to enter algebraic formulas with the
correct order of operations
B. Use of Excel or other current spreadsheet software as an option in any of the outline topics