BUSINESS MATH 1A

UNIT

SECTIONS

OBJECTIVES

Whole Numbers

 Writing Whole Numbers
 Adding Whole Numbers
 Subtracting Whole Numbers
 Multiplying Whole Numbers
 Dividing Whole Numbers
 Write whole numbers in both numerical form and word form
 Add, subtract, multiply, and divide whole numbers
 Use these operations to solve business problems

 Write whole numbers in both numerical form and word form
 Add, subtract, multiply, and divide whole numbers
 Use these operations to solve business problems

Fractions

 Renaming Fractions
 Multiplication of Fractions
 Division of Fractions
 Addition and Subtraction of Fractions

 Write fractions as mixed numbers and improper fractions
 Reduce a fraction to lowest terms and raise a fraction to higher terms
 Multiply fractions
 Divide fractions
 Add and subtract fractions

Decimal Numbers

 Adding and Subtracting Decimals
 Multiplying and Dividing Decimals
 Converting Decimal Numbers and Fractions

 Add and subtract decimal numbers
 Multiply and divide decimal numbers
 Convert decimal numbers to fractions and fractions to decimal numbers

Percent

 Converting To and From Percent
 Solving Percent Problems

 Write fractions and decimal numbers as percents and change percents to decimal and fraction form
 Solve problems involving percents

Bank Records

 Setting Up and Using A Checking Account
 Reconciling Checking Accounts

 Set up and use a checking account
 Reconcile your checking account records with those of your bank

Payroll

 Paying Salaried and Hourly Employees
 Determining Piecework and Commission Pay
 Federal Income Tax, FICA, and Federal Unemployment Tax

 Calculate salary and hourly wages
 Use salary, hourly wages, piecework, differential piecework, straight commission, sliding scale commission, and salary plus commission to calculate payroll
 Determine employees’ federal income tax and FICA withholding

The Mathematics of Buying

 Taking Advantage of Trade Discounts
 Using Cash Discounts

 Calculate discount rates, including single and chain discounts
 Determine the best times to pay bills with different cash discount dates

The Mathematics of Selling

 Calculating Markup Based on Cost
 Calculating Markup Based on Selling Price
 Setting Markdowns

 Determine the markup on a product based on its cost
 Calculate the markup on a product based on its selling price
 Find the markdown and markdown rate on goods

Simple Interest

 Calculating Time
 Calculating Simple Interest
 Solving for Principal, Interest Rate, and Time

 Calculate the number of days between two dates using exact time and ordinary or 30daymonth time
 Calculate simple interest using the following methods:
 Exact interest
 Approximate or ordinary interest at ordinary or 30daymonth time
 Solve a simple interest problem for principal, interest rate, or time

Bank Discount Loans

 Promissory Notes and Bank Discount on NonInterestBearing Notes
 Bank Discount of an InterestBearing Note

 Calculate the net proceeds and bank discount of a noninterestbearing promissory note using exact, ordinary interest at ordinary or 30daymonth time, and banker’s interest
 Determine the bank discount and net proceeds of an interestbearing note using ordinary interest at ordinary or 30daymonth time and banker’s interest

More Complex Loans

 Using Installment Loans
 Working with the Rule of 78
 Using OpenEnd Credit

 Determine the finance charges and annual percentage rate on an installment loan
 Find the sum of the digits of a number of payments and apply the Rule of 78 for early loan payoffs
 Determine interest and balances on credit card accounts with different interest payment terms

BUSINESS MATH 1B

UNIT

SECTIONS

OBJECTIVES

Compound Interest and Present Value

 Compound Interest
 Present Value

 Determine compound interest, maturity values under compound interest, and effective rates under compound interest
 Find the present value of a current investment

Investments

 Annuities: Due and Ordinary
 Sinking Funds
 Stocks and Bonds

 Determine the value of ordinary and due annuities
 Calculate the payments necessary to establish a sinking fund
 Find the yield of stocks and bonds

Real Estate Mathematics

 Mortgage Payments and Points
 Amortization

 Determine mortgage payments and points
 Calculate the principal and interest portions of a mortgage payment and generate an amortization schedule
 Calculate the assessed value and property tax

Inventory and Overhead

 Inventory Valuation
 Retail Method and Overhead

 Calculate inventory values using the specific identification, average cost, FIFO, and LIFO methods
 Determine inventory values using the retail method and allocate overhead by sales volume and floor space

Depreciation

 StraightLine and UnitsofProduction Methods
 DecliningBalance and SumoftheYears’
 Digits Methods
 The MACRS Method of Depreciaion

 Construct a depreciation schedule using the straightline and unitsofproduction methods
 Develop a depreciation schedule using the decliningbalance and sumoftheyears’digits methods
 Use the MACRS depreciation methods

Insurance

 Fire Insurance
 Motor Vehicle Insurance
 Life Insurance

 Calculate premiums, prorations, and coinsurance payouts for fire insurance
 Find premiums and payouts on liability, collision, comprehensive, and medical payments for motor vehicle insurance policies
 Determine premiums and surrender options on various forms of life insurance policies

Financial Statement Analysis

 Balance Sheets
 Income Statements
 Financial Ratio Analysis

 Complete a horizontal and vertical analysis of two successive balance sheets
 Perform a horizontal and vertical analysis of two successful income statements
 Calculate current ratio, acidtest ratio, return on equity, and inventory turnover

Statistics and Graphs

 Business Statistics
 Business Graphs

 Calculate the mean, median, mode, and range for a set of data
 Interpret tables of numerical data
 Read and plot bar graphs, line graphs, and pie charts
