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
Review the following example item and response for a sample that meets expectations.
- 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
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 short-term financing options available to finance a company’s expansion plans. |
Description of the short-term 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.
|
Description includes discussion of bank loans (promissory notes, lines of credit, revolving credit) and commercial paper.
Description is complete and specific to the facts of the scenario.
|
Response demonstrates the same level of achievement as “2,” plus the following:
Description includes discussion of other financing sources beyond those given. |
| Learning Objective 2.2: Analyze the advantages and disadvantages of short-term financing sources. |
Analysis of the advantages and disadvantages of short-term financing sources is missing. |
Analysis does not cite clear advantages and disadvantages of each funding source.
Analysis is not specific to the facts of the scenario. |
Analysis cites clear advantages and disadvantages of each funding source.
Analysis is specific to the facts of the scenario. |
Response demonstrates the same level of achievement as “2,” plus the following:
Analysis of advantages and disadvantages includes discussion of other financing sources beyond those given. |
Rubric
| Sub-Competency 5: Calculate additional funds needed (AFN) to meet projected growth requirements. |
| Learning Objective 5.1:
Calculate AFN. |
Calculation of AFN is missing. |
Calculation doesn’t use the correct inputs.
Calculation is incorrect. |
Calculation uses the correct inputs.
Calculation is correct. |
Response demonstrates the same level of achievement as “2,” plus the following:
Calculation includes a reference to the given business context. |
- Cross Rates:
- a) Do problem 19-2 on page 672. (Fundamentals of Financial Management, 13th Edition)
Your Response