May 25, 2024  
2022-2023 College Catalog 
    
2022-2023 College Catalog [ARCHIVED CATALOG]

BUS 151 - Mathematics of Business

3 Credits, 3 Contact Hours
3 lecture periods 0 lab periods

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 of ICS 081  with a grade of B or better, or placement into MAT 092 .
Gen-Ed: Meets CTE - M&S.


  button image Prior Learning and link to PLA webpage

Course Learning Outcomes
  1. Demonstrate the ability to reconcile a bank statement with an account register.
  2. Perform basic calculations for payroll.
  3. Perform basic calculations for markup and markdown.
  4. Perform basic calculations for present values and future values.
  5. Perform basic statistical calculations of the three common measures of central tendency for mean, median and mode.

Performance Objectives:
  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 employees required and voluntary deductions and employer’s payroll taxes.  
  4. 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.  
  5. Compare simple and compound interest and calculate each from algebraic formulas.  
  6. Distinguish between present and future value of money, and their determination.  
  7. Describe and perform basic calculations for the 4 major methods of depreciation and the underlying conditions and pros and cons of each.  
  8. Identify and discuss the 5 variations of inventory valuation, as well as calculate inventory turnover. Calculate allocated overhead based on sales volume and floor space.
  9. Review the balance sheet and income statement of a business, interpretation and use, including pertinent financial ratios.  
  10. 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.
  11. Describe the use of descriptive statistics in business.  Calculate various descriptive statistics including measures of central tendency and variability.

Outline:
  1. Math Review
    1. Conversion of fractions, decimals and percent
    2. Solving algebraic equations
  2. Bank Records
    1. Checks
    2. Check register
    3. Reconciling a bank statement
  3. Payroll
    1. Employees’ Gross Pay
      1. Define pay periods
      2. Salary, wages, commissions, tips, bonuses, etc.
      3. Calculation of overtime
    2. Employee deductions
      1. Required
      2. Voluntary
    3. Employer payroll taxes
  4. Markup and Markdown
    1. Retail terms
      1. Cost
      2. Markup
      3. Selling price
      4. Operating expenses
      5. Net profit
    2. Markup equation
    3. Markup on cost and/or selling price
    4. Markdown
  5. Simple and Compound Interest
    1. Simple interest and simple discount
      1. Define interest, rate, principal, time ordinary and exact
      2. Simple interest formula
    2. Compound interest
      1. Compare simple and compound interest
      2. Promissory notes
  6. VI. Present and Future Value
    1. Calculating and use of tables
    2. Compound interest
    3. Compound amount
  7. VII. Depreciation
    1. Role in business and tax consequences
    2. Terminology
      1. Asset
      2. Useful life
      3. Total cost
      4. Book value
      5. Accumulated depreciation
    3. Methods
      1. Straight line
      2. Declining-balance
      3. Units of production
      4. MACRS
  8. Inventory, Overhead, and Turnover
    1. Taking inventory
      1. Periodic
      2. Perpetual
    2. Cost of goods sold
    3. Inventory valuation methods
      1. Specific identification
      2. Weighted average
      3. FIFO
      4. LIFO
    4. Inventory turnover
    5. Overhead
      1. Total sales
      2. Unit floor space
  9. Financial Statements
    1. Balance sheet definition
      1. Assets
      2. Liabilities
      3. Owner’s equity
    2. Income statement definition
      1. Net sales/revenue
      2. Cost of goods sold
      3. Operating expenses
      4. Gross profit/margin
      5. Net income
      6. Trend and ratio analysis
  10. Stocks and Bonds
    1. Stocks ownership
      1. Dividends
      2. Yield
      3. P/E ratio
    2. Bonds legal debt
      1. Interest
      2. Yield
      3. Discount
      4. Premium
      5. Purchase cost of a bond
  11. Descriptive Statistics
    1. Use of descriptive statistics in business
    2. Measures of central tendency, variability, and location
      1. Mean
      2. Median
      3. Mode