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Description

The use of Rubric as a guideline is the most important factor in mastering this competency

Instructions
Before submitting your Assessment, carefully review the rubric. This is the
same rubric the assessor will use to evaluate your submission and it provides
detailed criteria describing how to achieve or master the Competency. Many
students find that understanding the requirements of the Assessment and the
rubric criteria help them direct their focus and use their time most productively.
To complete this Assessment:


Download the Academic Writing Expectations Checklist to use as a
guide when completing your Assessment. Responses that do not meet
the expectations of scholarly writing will be returned without scoring.
Properly formatted APA citations and references must be provided
where appropriate.
Download the SF003 Short Answer Submission Form, which includes
the Rubric for this Assessment. Complete the form adhering to the
criteria presented in the Rubric.
This Assessment requires submission of one (1) document, a completed
Short Answer Submission Form. Save this file
as SF003_firstinitial_lastname (for example, SF003_J_Smith). When you
are ready to upload your completed Assessment, use the Assessment tab on
the top navigation menu.
Overview
For this Short Answer Assessment, using the end-of-chapter practice
problems in the textbook (Fundamentals of Financial Management, 2013) you
will answer a series of short answer items to demonstrate your ability to use
multiple techniques to evaluate short-term working capital position and needs.
Access the following to complete this Assessment:



Text: Fundamentals of Financial Management, 13th Edition (2013)
SF003 Short Answer Submission Form (with Rubric)
Academic Writing Expectations Checklist
SF003: Sources and Uses of Short-Term Capital
Short Answer Submission Form
Your Name: First and last
Your E-mail Address: Your email here
Instructions
This Competency includes a Short-Answer Response Assessment. Write your response to each prompt below in the space provided. The Rubric,
which will be used by the Competency Assessor to evaluate your responses, is beneath the prompts. Carefully review the Rubric rows associated
with each prompt to provide a complete response.
When writing your response, begin typing where it reads “Enter Your Response Here.” Write as much as needed to satisfy the requirements of
the prompt (as defined in the Rubric). Be sure to support your responses with connections to professional sources.
Your Assessment responses require references (in APA style) to support your thinking. You will list your references at the end of this template
where “References” are noted. If you need additional information regarding how to correctly cite, and/or reference sources, please visit the
Walden Writing Center at http://academicguides.waldenu.edu/writingcenter/apa/citations
To learn more about effective paraphrasing strategies, visit the Walden Writing Center at
http://academicguides.waldenu.edu/writingcenter/evidence/paraphrase/effective
©2015 Walden University
1
Review the following example item and response for a sample that meets expectations.
Sample Prompt:
Choose a definition of organizational culture, and explain whether you agree or disagree with the definition. Use examples from your
own professional experience to support your response.
Response:
Whitehurst (2016) explained “organizational culture is defined by how people in an organization interact with each other” (para. 2).
While I agree that this is one aspect of organizational culture, the definition does not capture the complex factors that contribute to
organizational culture. When I started my first job after finishing my undergraduate degree in business, I worked for an organization
whose main headquarters were in Dubai. When I traveled to Dubai for the first time, I realized that the culture of the Dubai office was
largely influenced by the society’s culture in Dubai. I found that the organization lacked one cohesive culture and that, depending on
regional locations, each office had its own culture. International organizations often face many challenges in maintaining a cohesive
organizational culture (Watkins, 2013). I found this observation to be true in my experience. For example, the Dubai office seemed to
endow their employees with more allowance for self-direction when compared with our domestic offices. Although people’s
interactions with one another contributed to the organization’s culture, there were other factors like location, management style, and
societal norms that impacted a business culture as well.
References
Watkins, M. D. (2013, May 15). What is organizational culture? And why should we care. Harvard Business Review. Retrieved from
https://hbr.org/2013/05/what-is-organizational-culture
Whitehurst, J. (2016, October 13). Leaders can shape company culture through their behaviors. Harvard Business Review. Retrieved from
https://hbr.org/2016/10/leaders-can-shape-company-culture-through-their-behaviors
Note: References are included at the end of a Short-Answer Assessment but are included here as an example of an accurate APA
reference list.
©2015 Walden University
2
1. You are a graduate student who is being considered for an internship on the finance team of a national sporting goods retailer. In your first
interview, you are asked by a recent hire to explain the differences between gross working capital, net working capital, and net operating
working capital and their relationship to the cash conversion cycle. How would you explain these? (3–4 paragraphs)
Your Response
Enter your response here
Rubric
0
Not Present
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
Sub-Competency 1: Describe basic working capital concepts (gross working capital, net working capital, net operating working capital, cash
conversion cycle).
Learning Objective 1.1:
Describe the
differences between
gross working capital,
net working capital,
and net operating
working capital.
Learning Objective 1.2:
Describe the
relationship between
gross working capital,
net working capital, net
operating working
©2015 Walden University
Description of the
differences is missing.
Description of the
relationship between gross
working capital, net
working capital, net
operating working capital,
and the cash conversion
Description of the
differences is inaccurate
and/or incomplete.
Description of the
differences is accurate and
complete.
Description makes no clear
distinction between gross
working capital and net
working capital.
Description makes a clear
distinction between gross
working capital and net
working capital.
Description makes no clear
distinction between net
working capital and net
operating working capital.
Description makes a clear
distinction between net
working capital and net
operating working capital.
Description of relationship
is inaccurate and/or
incomplete.
Description of the
relationship among the
four concepts is accurate
and complete.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Descriptions include
references to the given
business context, i.e.,
makes use of the facts in
the given scenario.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Descriptions include
3
capital, and the cash
conversion cycle.
0
Not Present
cycle is missing.
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
references to the given
business context, i.e.,
makes use of the facts in
the given scenario.
2. You are the CFO for XYZ Candies, a boutique candy distributor. Your new CEO wants to expand into online sales, but this will require
purchasing an additional $50,000 in inventory from the manufacturer each month over the next year. Write a memo that explains the
various short-term financing options available to your CEO. What are the advantages and disadvantages of each source? What do you
recommend and why? (2–3 paragraphs)
Your Response
Enter your response here
Rubric
Sub-Competency 2: Analyze uses of short-term financing sources: bank loans (promissory notes, lines of credit, revolving credit
agreements) and commercial paper for needed short-term working capital.
Learning Objective 2.1:
Describe the shortterm financing options
available to finance a
company’s expansion
plans.
Description of the shortterm financing options
available to fund a
company’s expansion is
missing.
Description does not
include discussion of bank
loans (promissory notes,
lines of credit, revolving
credit) and/or commercial
paper.
Description is not specific
to the facts of the
scenario.
Learning Objective 2.2:
Analyze the advantages
and disadvantages of
©2015 Walden University
Analysis of the advantages
and disadvantages of
short-term financing
Analysis does not cite clear
advantages and
disadvantages of each
Description includes
discussion of bank loans
(promissory notes, lines of
credit, revolving credit)
and commercial paper.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Description is complete
and specific to the facts of
the scenario.
Description includes
discussion of other
financing sources beyond
those given.
Analysis cites clear
advantages and
disadvantages of each
Response demonstrates
the same level of
achievement as “2,” plus
4
short-term financing
sources.
sources is missing.
funding source.
funding source.
the following:
Analysis is not specific to
the facts of the scenario.
Analysis is specific to the
facts of the scenario.
Analysis of advantages and
disadvantages includes
discussion of other
financing sources beyond
those given.
3. Cash Conversion Cycle: Do problem 16-4, Parts a–c, on page 568. (Fundamentals of Financial Management, 13th Edition)
Your Response
Enter your response here
Rubric
Sub-Competency 3: Calculate the inventory conversion period, the receivables collection period, and the payables deferral period to
determine the cash conversion cycle.
Learning Objective 3.1:
Calculate the cash
conversion cycle for a
company.
Learning Objective 3.2:
Determine a
company’s investment
in accounts receivable.
©2015 Walden University
Calculation of the cash
conversion cycle is missing.
Determination of a
company’s investment in
accounts receivable is
missing.
Calculation is inaccurate
and/or incomplete.
Calculation is accurate and
complete.
Calculation is not stated
correctly in terms of how
the cash conversion cycle
is expressed.
Calculation is stated
correctly in terms of how
the cash conversion cycle
is expressed.
Determination of average
sales per day is computed
incorrectly.
Determination of average
sales per day is computed
correctly.
Determination of
company’s investment in
accounts receivable is
Determination of
company’s investment in
accounts receivable is
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Calculation includes a
reference to the given
business context.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Determination includes a
reference to the given
5
Learning Objective 3.3:
Determine a
company’s annual
inventory turnover
ratio.
Determination of a
company’s annual
inventory turnover ratio is
missing.
inaccurate and/or
incomplete.
Determination of
inventory turnover ratio is
inaccurate and/or
incomplete.
accurate and complete.
business context.
Determination of
inventory turnover ratio is
accurate and complete.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Determination includes a
reference to the given
business context.
4. You are the new finance manager for XYZ Parts, an electronics distributor. Before working at XYZ, you spent several years working for its
close competitor, ABC Electronics. One of your first deliverables to your new CEO is an analysis of the competition from a financial
perspective. As part of your analysis, you decide to compare the cash conversion cycles of the two companies, using the following facts:
XYZ Parts
Inventory conversion period = 88 days
Average collection period (ACP) = 54 days
Payables deferral period = 30 days
ABC Electronics
Inventory conversion period = 90 days
ACP = 44 days
Payables deferral period = 30 days
Based on this information, how does the cash conversion cycle for XYZ Parts compare with that of ABC Electronics? (2–3 sentences)
©2015 Walden University
6
Your Response
Enter your response here
Rubric
Sub-Competency 4: Compare a company’s cash conversion cycle with those of peer companies.
Learning Objective 4.1:
Calculate the cash
conversion cycles for
two companies.
Learning Objective 4.2:
Analyze the cash
conversion cycles of
two companies.
Calculation of the cash
conversion cycles is
missing.
Analysis of the cash
conversion cycles is
missing.
Calculations are inaccurate
and/or incomplete.
Analysis is inaccurate
and/or incomplete.
Calculations are accurate
and complete.
Analysis is accurate and
complete.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Calculations include a
reference to the given
business context.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Analysis includes a
reference to the given
business context.
5. Additional Funds Needed:
a) Do problem 17-1 on page 591. (Fundamentals of Financial Management, 13th Edition)
b) Refer to problem 17-1. The company’s executive team is very concerned about funding growth with new debt, given the existing liabilities.
What strategies might the company consider to reduce its AFN? (1–2 paragraphs)
Your Response
Enter your response here
©2015 Walden University
7
Rubric
Sub-Competency 5: Calculate additional funds needed (AFN) to meet projected growth requirements.
Learning Objective 5.1:
Calculate AFN.
Learning Objective 5.2:
Analyze strategies for
reducing a company’s
AFN.
Calculation of AFN is
missing.
Analysis of strategies for
reducing a company’s AFN
is missing.
Calculation doesn’t use the
correct inputs.
Calculation uses the
correct inputs.
Calculation is incorrect.
Calculation is correct.
Analysis does not identify
at least two strategies for
reducing AFN.
Analysis identifies at least
two strategies for reducing
AFN.
Analysis is not specific to
the facts of the scenario.
Analysis is specific to the
facts of the scenario.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Calculation includes a
reference to the given
business context.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Analysis identifies more
than two strategies for
reducing AFN.
6. Cross Rates:
a) Do problem 19-2 on page 672. (Fundamentals of Financial Management, 13th Edition)
b) Create your own problem. Choose any two currencies and then calculate and explain their current cross rate.
Your Response
Enter your response here
Rubric
Sub-Competency 6: Calculate cross rates between any two currencies.
Learning Objective 6.1:
Calculate the cross
©2015 Walden University
Calculation of the cross
rates between two
Calculation doesn’t use the
correct inputs.
Calculation uses the
correct inputs.
Response demonstrates
the same level of
8
rates between two
currencies.
Learning Objective 6.2:
Write and solve an
original cross rate
problem.
currencies is missing.
Calculation is incorrect.
Cross rate problem is
missing.
Calculation is correct.
Cross rate problem does
not use the correct inputs.
Cross rate problem uses
the correct inputs.
Cross rate problem is not
solved correctly.
Cross rate problem is
solved correctly.
achievement as “2,” plus
the following:
Result and relationship
between the two
currencies is interpreted
clearly.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Result and relationship
between the two
currencies is interpreted
clearly.
Source of data used is
provided.
©2015 Walden University
9
References
©2015 Walden University
10
Instructions
Before submitting your Assessment, carefully review the rubric. This is the
same rubric the assessor will use to evaluate your submission and it provides
detailed criteria describing how to achieve or master the Competency. Many
students find that understanding the requirements of the Assessment and the
rubric criteria help them direct their focus and use their time most productively.
To complete this Assessment:


Download the Academic Writing Expectations Checklist to use as a
guide when completing your Assessment. Responses that do not meet
the expectations of scholarly writing will be returned without scoring.
Properly formatted APA citations and references must be provided
where appropriate.
Download the SF003 Short Answer Submission Form, which includes
the Rubric for this Assessment. Complete the form adhering to the
criteria presented in the Rubric.
This Assessment requires submission of one (1) document, a completed
Short Answer Submission Form. Save this file
as SF003_firstinitial_lastname (for example, SF003_J_Smith). When you
are ready to upload your completed Assessment, use the Assessment tab on
the top navigation menu.

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