FTDM

Sample Event

CAREER CLUSTER
Finance

INSTRUCTIONAL AREA
Financial Analysis

FINANICAL SERVICES
TEAM DECISION MAKING EVENT

PARTICIPANT INSTRUCTIONS
 The event will be presented to you through your reading of the General Performance
Indicators, Specific Performance Indicators and Case Study Situation. You will have up to 30
minutes to review this information and prepare your presentation. You may make notes to
use during your presentation.
 You will have up to 10 minutes to make your presentation to the judge (you may have more
than one judge), followed by up to 5 minutes to answer the judge’s questions. All members
of the team must participate in the presentation, as well as answer the questions.
 Turn in all of your notes and event materials when you have completed the event.

GENERAL PERFORMANCE INDICATORS

 Communications skills—the ability to exchange information and ideas with others through
writing, speaking, reading or listening
 Analytical skills—the ability to derive facts from data, findings from facts, conclusions from
findings and recommendations from conclusions
 Production skills—the ability to take a concept from an idea and make it real
 Teamwork—the ability to be an effective member of a productive group
 Priorities/time management—the ability to determine priorities and manage time commitments
 Economic competencies

SPECIFIC PERFORMANCE INDICATORS

 Describe sources of income.

 Set financial goals.
 Describe the need for financial information.
 Explain the need for accounting standards.
 Discuss the role of ethics in accounting.
 Describe the nature of income statements.
 Describe the nature of budgets.

Published by DECA Related Materials. Copyright © by DECA, Inc. No part of this publication may be reproduced
for resale without written permission from the publisher. Printed in the United States of America.
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Sample Event

CASE STUDY SITUATION

You are to assume the roles of consultants at STRATEGO, a regional consulting firm. Your client
(judge) has asked you to prepare a presentation.

Your client (judge) has purchased Mom and Pop’s, a retail clothing store, and wants you to
present a training session to the office staff. You are to use information from the income
statement to identify positive and negative trends, as well as any other examples. In the
presentation, you are to describe the need for financial information, the role of ethics in
accounting, and the need for accounting standards—especially the matching concept. In
addition, you are to discuss sources of income and the nature of the income statement. In hopes
of increasing the net income for this business, you are to set financial goals and describe the
nature of budgets.

Jan Feb Mar Apr May Jun YTD

Revenue
Sales
7,943 9,549 8,790 7,980 4,735 5,854 44,851
Less Sales Ret and
Allow 892 951 2,329 913 1,631 1,274 7,990
Net Sales
7,051 8,598 6,461 7,067 3,104 4,580 36,861
Cost of Goods Sold
1,349 1,195 1,294 948 1,253 1,052 7,091
Gross Profit on Sales
5,702 7,403 5,167 6,119 1,851 3,528 29,770
Expenses
Advertising Expense
1,476 3,587 2,325 875 1,505 704 10,472
Miscellaneous Expense
172 1,980 319 453 1,152 640 4,716
Rent Expense
850 850 850 850 850 850 5,100
Salaries Expense
1,531 1,935 1,175 1,420 725 1,270 8,056
Utilities Expense
358 - 287 301 - 375 1,321
Total Expenses
4,387 8,352 4,956 3,899 4,232 3,839 29,665
Net Income
1,315 (949) 211 2,220 (2,381) (311) 105

You will present to the client (judge) in a meeting to take place in the client’s (judge’s) office.
The client (judge) will begin the meeting by greeting you and asking to hear your ideas. After
you have presented and have answered the client’s (judge’s) questions, the client (judge) will
conclude the meeting by thanking you for your work.

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JUDGE’S INSTRUCTIONS
You are to assume the role of client at of STRATEGO, a regional consulting firm. You have asked
your consultants (participant team) to prepare a presentation.

You have purchased Mom and Pop’s, a retail clothing store, and want your consultants
(participant team) to present a training session to the office staff. They are to use information
from the income statement to identify positive and negative trends, as well as any other
examples. In the presentation, they are to describe the need for financial information, the role of
ethics in accounting, and the need for accounting standard—especially the matching concept. In
addition, they are to discuss sources of income and the nature of the income statement. In hopes
of increasing the net income for this business, they are to set financial goals and describe the
nature of budgets.

Jan Feb Mar Apr May Jun YTD

Revenue
Sales
7,943 9,549 8,790 7,980 4,735 5,854 44,851
Less Sales Ret and
Allow 892 951 2,329 913 1,631 1,274 7,990
Net Sales
7,051 8,598 6,461 7,067 3,104 4,580 36,861
Cost of Goods Sold
1,349 1,195 1,294 948 1,253 1,052 7,091
Gross Profit on Sales
5,702 7,403 5,167 6,119 1,851 3,528 29,770
Expenses
Advertising Expense
1,476 3,587 2,325 875 1,505 704 10,472
Miscellaneous Expense
172 1,980 319 453 1,152 640 4,716
Rent Expense
850 850 850 850 850 850 5,100
Salaries Expense
1,531 1,935 1,175 1,420 725 1,270 8,056
Utilities Expense
358 - 287 301 - 375 1,321
Total Expenses
4,387 8,352 4,956 3,899 4,232 3,839 29,665
Net Income
1,315 (949) 211 2,220 (2,381) (311) 105

The consultants (participants) will present to you in a meeting to take place in your office. You
will begin the meeting by greeting the participants and asking to hear about their ideas.

After the consultants (participant team) have presented, you are to ask the following questions of
each participant team:

1. What other financial statements would you like to have for the presentation?

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2. Is the use of miscellaneous expenses a red flag to auditors and investors?

3. What is the largest issue you see in the income statement?

Once the consultants (participant team) have answered your questions, you will conclude the
meeting by thanking them for their work.

You are not to make any comments after the event is over except to thank the participants.

Key Points:

Increase in miscellaneous expense

Lack of utilities expense
Inconsistent salaries
Inconsistent advertising expense
Matching concept—match the revenue with the expense incurred in same fiscal cycle.

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JUDGING THE PRESENTATION

Team members, assuming the role of a management team for the business represented, will analyze a case
situation related to the chosen occupational area. The team will make decisions regarding the situation,
and then make an oral presentation to the judge. The role of the judge is that of an executive for the
business.

Participants will be evaluated according to the Evaluation Form.

Please place the name and identification number label on the Scantron sheet (unless it has already been
done for you).

Participants will have a 30-minute preparation period and may make notes to use during the role-play.

During the first 10 minutes of the presentation (after introductions), the team will present their analysis,
their decisions and the rationale behind the decisions. Allow the teams to complete this portion without
interruption, unless you are asked to respond.

During the next 5 minutes, you may ask questions of the team to determine their understanding of the
situation presented. Each member of each team should respond to at least one question. To ensure
fairness, you must ask each team the same questions. After asking the standard questions, you may ask
other questions for clarification specific to the current team.

After the questioning period, please thank the team and state that they will be notified of your decision
soon. Then complete the Evaluation Form, making sure to record a score for all categories. The maximum
score for the evaluation is 100 points. The presentation will be weighted at twice (2 times) the value of the
exam scores.

A maximum score of “Exceeds Expectations” in any category means that, in your opinion, the
information is presented effectively and creatively; nothing more could be expected of an employee.

A “Meets Expectations” rating means that the information is presented well. Though there may be a few
minor problems or omissions, they are not significant. Creativity, however, is not shown to any great
degree. A combined total score of 70 or better on the written and presentation sections will earn the
participant team DECA’s Certificate of Excellence at the international conference.

A “Below Expectations” score means that the information presented does not meet minimum standards of
acceptability.

A “Little/No Value” score means either that some major flaw has been noted that damages the
effectiveness of the presentation (this may be a major omission, a serious misstatement or any other major
flaw) or that the information presented is of no value (does not help the presentation at all).

We hope you are impressed by the quality of the work of these potential managers. If you have any
suggestions for improving the event, please mention them to your series director.

We thank you for your help.

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JUDGE’S EVALUATION FORM

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SAMPLE EVENT

PERFORMANCE INDICATORS Little/No Below Meets Exceeds Judged

Value Expectations Expectations Expectations Score
DID THE PARTICIPANT:

1. Describe sources of income? 0-1-2-3 4-5-6 7-8 9-10 ________

2. Set financial goals? 0-1-2-3 4-5-6 7-8 9-10 ________

3. Describe the need for financial

information? 0-1-2-3 4-5-6 7-8 9-10 ________

4. Explain the need for accounting

standards? 0-1-2-3 4-5-6 7-8 9-10 ________

5. Discuss the role of ethics in accounting? 0-1-2-3 4-5-6 7-8 9-10 ________

6. Discuss the nature of income statements? 0-1-2-3 4-5-6 7-8 9-10 ________

7. Describe the nature of budgets? 0-1-2-3 4-5-6 7-8 9-10 ________

PRESENTATION Little/No Below Meets Exceeds Judged
Value Expectations Expectations Expectations Score
8. Clarity of expression 0-1 2-3 4 5-6 ________

9. Organization of ideas 0-1 2-3 4 5-6 ________

10. Showed evidence of mature judgment 0-1 2-3 4 5-6 ________

11. Effective participation of both team

members 0-1 2-3 4 5-6 ________

12. Overall impression and responses to the

judge’s questions 0-1 2-3 4 5-6 ________

TOTAL SCORE ________