BFS-20

District Event #2

CAREER CLUSTER
Finance

CAREER PATHWAY
Corporate (Business) Finance

INSTRUCTIONAL AREA
Financial Analysis

BUSINESS FINANCE SERIES EVENT

PARTICIPANT INSTRUCTIONS

 The event will be presented to you through your reading of the 21st Century Skills, Performance
Indicators and Event Situation. You will have up to 10 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).
 You will be evaluated on how well you demonstrate the 21st Century Skills and meet the
performance indicators of this event.
 Turn in all of your notes and event materials when you have completed the event.

21st CENTURY SKILLS

 Critical Thinking – Reason effectively and use systems thinking.

 Problem Solving – Make judgments and decisions, and solve problems.
 Communication – Communicate clearly.
 Creativity and Innovation – Show evidence of creativity.

PERFORMANCE INDICATORS

 Describe the nature of cash flows.

 Describe components of a collection system.
 Describe the need for financial information.
 Draw conclusions based on information analysis.
 Discuss the analysis of a company’s financial situation using its financial statements.

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online without written permission from the publisher. Printed in the United States of America.
 BFS-20
District Event #2

EVENT SITUATION

You are to assume the role of the office manager for WISDOM DENTAL PRACTICE. The owner (judge) is
concerned about cash flow and wants you to analyze the accounts receivable.

WISDOM DENTAL PRACTICE is owned by one dentist that accepts multiple insurances and bills patients
the remaining balances. The owner (judge) is concerned that cash flow has been slow for July and
August and asked you to analyze the accounts receivable. You will calculate the accounts receivable
turnover ratio for July and August to see how many times on average accounts receivable is being
collected. The formula for accounts receivable turnover is:
Sales/((Beginning Accounts Receivable + Ending Accounts Receivable)/2)

You will then meet with the owner (judge) to explain the results and discuss what needs to be done to
collect from the insurance companies and patients.

The WISDOM DENTAL PRACTICE’S partial balance sheet and sales are below:
Wisdom Dental Practice
Partial Balance
June 30th, July 31st, August 31st

June July August

Assets
Current Assets
Cash 35,042 54,922 64,222
A/R 20,323 25,231 39,427
Supplies 4,839 5,432 5,223
Total Current Assets 60,204 85,585 108,872

Wisdom Dental Practice

Sales
For Months Ended

June July August

Sales 138,083 154,624 164,322

You are to:

• Analyze accounts receivable by calculating accounts receivable turnover for July and August
• Meet with the owner (judge) to explain the meaning of the results of your analysis
• Discuss options for collecting from insurance companies and patients to improve the cash flow

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

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online without written permission from the publisher. Printed in the United States of America.
 BFS-20
District Event #2

JUDGE INSTRUCTIONS

DIRECTIONS, PROCEDURES AND JUDGE ROLE

In preparation for this event, you should review the following information with your event manager and
other judges:
1. Procedures, 21st Century Skills and Performance Indicators
2. Event Situation
3. Judge Role-Play Characterization
Allow the participants to present their ideas without interruption, unless you are asked to
respond. Participants may conduct a slightly different type of meeting and/or discussion with you
each time; however, it is important that the information you provide and the questions you ask be
uniform for every participant.
4. Judge Evaluation Instructions and Judge Evaluation Form
Please use a critical and consistent eye in rating each participant.

JUDGE ROLE-PLAY CHARACTERIZATION

You are to assume the role of the owner of WISDOM DENTAL PRACTICE. You are concerned about cash
flow and want the office manager (participant) to analyze the accounts receivable.

WISDOM DENTAL PRACTICE is owned by one dentist that accepts multiple insurances and bills patients
the remaining balances. You are concerned that cash flow has been slow for July and August and have
asked the office manager (participant) to analyze the accounts receivable. The office manager
(participant) will calculate the accounts receivable turnover ratio for July and August to see how many
times on average accounts receivable is being collected. The formula for accounts receivable turnover is:
Sales/((Beginning Accounts Receivable + Ending Accounts Receivable)/2)

The office manager (participant) will meet with you to explain the results and discuss what needs to be
done to collect from the insurance companies and patients.

The WISDOM DENTAL PRACTICE’S partial balance sheet and sales are below:

Published 2020 by DECA Inc. Copyright © 2020 by DECA Inc. No part of this publication may be reproduced for resale or posted 3
online without written permission from the publisher. Printed in the United States of America.
 BFS-20
District Event #2

Wisdom Dental Practice

Partial Balance
June 30th, July 31st, August 31st

June July August

Assets
Current Assets
Cash 35,042 54,922 64,222
A/R 20,323 25,231 39,427
Supplies 4,839 5,432 5,223
Total Current Assets 60,204 85,585 108,872

Wisdom Dental Practice

Sales
For Months Ended

June July August

Sales 138,083 154,624 164,322

The office manager (participant) must:

• Analyze accounts receivable by calculating accounts receivable turnover for July and August
• Meet with you to explain the meaning of the results of their analysis
• Discuss options for collecting from insurance companies and patients to improve the cash flow.

The participant will present information to you in a role-play to take place in your office. You will begin
the role-play by greeting the participant and asking to hear about his/her ideas.

During the course of the role-play, you are to ask the following questions of each participant:

1. What are possible benefits of raising the price of our services?

2. What are the possible risks of raising the price of our services?

Once the office manager (participant) has presented information and has answered your questions, you
will conclude the role-play by thanking the office manager (participant) for the work.

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

Published 2020 by DECA Inc. Copyright © 2020 by DECA Inc. No part of this publication may be reproduced for resale or posted 4
online without written permission from the publisher. Printed in the United States of America.
 BFS-20
District Event #2

SOLUTION

1. Analyze accounts receivable by calculating accounts receivable turnover for July and August
A/R Turnover
Months Calculation Answer
July 154,624/((20,323+25,231)/2) 6.79
August 164,322/((25,231+39,427)/2) 5.08

2. Meet with the owner to explain the meaning of the results of your analysis
Accounts receivable turnover shows how often on average accounts receivable is being collected. The
higher the ratio the better. The ratio decreased by 1.71 (6.79-5.08) from July to August, which indicates
that collections decreased in August.

3. Discuss options for collecting from insurance companies and patients to improve the cash flow.
Answers may vary, but some ideas include:
• Reviewing Accounts Receivable Aging Reports
• Calling customers that are behind on payment
• Charging Late fees
• Using collection agencies
• Re-billing patients
• Negotiating fees with patients
• Writing off accounts

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online without written permission from the publisher. Printed in the United States of America.
 BFS-20
District Event #2

EVALUATION INSTRUCTIONS

The participants are to be evaluated on their ability to perform the specific performance indicators stated
on the cover sheet of this event and restated on the Judge’s Evaluation Form. Although you may see
other performance indicators demonstrated by the participants, those listed in the Performance Indicators
section are the critical ones you are measuring for this particular event.

Evaluation Form Interpretation

The evaluation levels listed below and the evaluation rating procedures should be discussed thoroughly
with your event director and the other judges to ensure complete and common understanding for judging
consistency.

Level of Evaluation Interpretation Level

Exceeds Expectations Participant demonstrated the performance indicator in an extremely

professional manner; greatly exceeds business standards; would rank in the
top 10% of business personnel performing this performance indicator.

Meets Expectations Participant demonstrated the performance indicator in an acceptable and

effective manner; meets at least minimal business standards; there would
be no need for additional formalized training at this time; would rank in the
70-89th percentile of business personnel performing this performance
indicator.

Below Expectations Participant demonstrated the performance indicator with limited

effectiveness; performance generally fell below minimal business
standards; additional training would be required to improve knowledge,
attitude and/or skills; would rank in the 50-69th percentile of business
personnel performing this performance indicator.

Little/No Value Participant demonstrated the performance indicator with little or no

effectiveness; a great deal of formal training would be needed
immediately; perhaps this person should seek other employment; would
rank in the 0-49th percentile of business personnel performing this
performance indicator.

Published 2020 by DECA Inc. Copyright © 2020 by DECA Inc. No part of this publication may be reproduced for resale or posted 6
online without written permission from the publisher. Printed in the United States of America.
 BFS-20
District Event #2

BUSINESS FINANCE SERIES

2020

JUDGE’S EVALUATION FORM Participant: __________________________

DISTRICT EVENT #2
ID Number: __________________________
INSTRUCTIONAL AREA:
Financial Analysis

Did the participant: Little/No Below Meets Exceeds Judged

Value Expectations Expectations Expectations Score
PERFORMANCE INDICATORS

1. Describe the nature of cash flows? 0-1-2-3-4 5-6-7-8 9-10-11 12-13-14

Describe components of a collection
2. 0-1-2-3-4 5-6-7-8 9-10-11 12-13-14
system?
Describe the need for financial
3. 0-1-2-3-4 5-6-7-8 9-10-11 12-13-14
information?
Draw conclusions based on
4. 0-1-2-3-4 5-6-7-8 9-10-11 12-13-14
information analysis?
Discuss the analysis of a company’s
5. financial situation using its financial 0-1-2-3-4 5-6-7-8 9-10-11 12-13-14
statements?
21st CENTURY SKILLS
Reason effectively and use systems
6. 0-1 2-3 4 5-6
thinking?
Make judgments and decisions, and
7. 0-1 2-3 4 5-6
solve problems?
8. Communicate clearly? 0-1 2-3 4 5-6

9. Show evidence of creativity? 0-1 2-3 4 5-6

Overall impression and responses
10. 0-1 2-3 4 5-6
to the judge’s questions
TOTAL SCORE

Published 2020 by DECA Inc. Copyright © 2020 by DECA Inc. No part of this publication may be reproduced for resale or posted 2
online without written permission from the publisher. Printed in the United States of America.