| Course | WMBA 6050 Accounting for Management Decision Making |
|---|---|
| Week | Week 1 |
| Paper type | Discussion post |
| Length | About 520 words, 3 pages |
| Format | Discussion post, APA 7 citations |
| School | Walden University |
| Program | Master of Business Administration (MBA) |
| Updated | October 2026 |
Free sample paper for WMBA 6050 Week 1
Week 1 Discussion: Reading the Three Financial Statements
Profit of $407,000, Cash Down $103,000 and $410,000 We Have Not Earned Yet: What Three Statements Told a Golf Club's Food and Beverage Manager, and What the Club Should Do About It
I manage food and beverage at Briar Hollow Golf Club, a composite public course near Madison, Wisconsin, with a clubhouse restaurant and a banquet room that hosts about 90 weddings and outings a season. I have never prepared a financial statement, but this week I read all three for last year, and each told me something the others did not.
The income statement says the club earned $407,000 on revenue of $4.83 million. Green fees and carts brought in about $2.16 million, and food, beverage and banquets about $1.94 million. That looks healthy, and green fees alone rose faster than the number of rounds played.
The statement of cash flows tells a different story. Operating activities produced about $807,000 of cash, since depreciation of $340,000 is an expense that uses no cash, and wedding deposits rose. But the club spent $610,000 replacing the first third of its irrigation system, repaid $200,000 of its loan and distributed $100,000 to the owners. Cash fell by about $103,000 despite the profit.
The balance sheet explains why I should care. It shows $410,000 of customer deposits as a liability: money couples paid for next year's weddings. Under the revenue standard, a deposit stays a liability until the club delivers the event it was paid for (Financial Accounting Standards Board, 2014). That cash sits in our bank account, but we have not earned it, and if the club spent it on irrigation, it would have to find the money again when those weddings are served next summer.
Read together, the statements say the club is profitable but is funding a large capital project from operating cash and, partly, from money that belongs to future events. This means the company should finance the remaining two-thirds of the irrigation replacement with a term loan matched to the system's life, rather than paying for it from operations and deposits. Brealey et al. (2023) describe matching the financing of long-lived assets to their useful lives, and an irrigation system that lasts twenty-five years is a clear case.
Has anyone else found a statement that seemed to contradict the others until you read all three together?
Reply to Tamara
Tamara, your point that your clinic's net income rose while its receivables doubled shows profit and cash heading in opposite directions. I wonder whether the rise in receivables reflects slower insurer payments or more patients on payment plans, since the action for each would be quite different.
Reply to Brian
Brian, I agree that depreciation confuses a lot of managers. Datar and Rajan (2021) explain depreciation as a charge that allocates what equipment cost across its working life, which is why it lowers reported profit in a year when no cash leaves the club for it. In your shop's case, that is why cash flow from operations is so much higher than net income, and why the two should not be confused when planning a purchase.
References
Brealey, R. A., Myers, S. C., & Allen, F. (2023). Principles of corporate finance (14th ed.). McGraw Hill.
Datar, S. M., & Rajan, M. V. (2021). Horngren's cost accounting: A managerial emphasis (17th ed.). Pearson.
Financial Accounting Standards Board. (2014). Revenue from contracts with customers (Topic 606) (Accounting Standards Update No. 2014-09). Financial Accounting Standards Board.
The Walden WMBA 6050 Week 1 instructions
The opening discussion in a managerial accounting course usually asks students to read an organization's three financial statements and explain what they say to a manager, not how they are prepared. Many prompts require the post to reach a recommendation, sometimes in a fixed form such as a sentence starting with "this means the company should." Instructors look for statements read together, so that profit, cash and obligations are connected, rather than three separate summaries. Posts tend to stay under four hundred words, with two short replies. Students may use their employer's statements with figures rounded or a composite organization. Explaining one accounting idea in plain language, such as why depreciation lowers profit without using cash, shows understanding without turning the post into a glossary.
Inside the WMBA 6050 Week 1 example
The post introduces the writer's role and the club: a public course, a restaurant and a banquet room hosting about 90 events a season. It reads the income statement first, giving profit and the main revenue lines. The cash flow statement follows, explaining why operating cash exceeded profit and why cash still fell after capital spending, loan repayment and a distribution. The balance sheet comes third, with wedding deposits identified as a liability and the revenue standard cited for why. A paragraph ties the three together and states the recommendation, citing Brealey and colleagues on matching long-lived assets with long-term financing. A question asks classmates for statements that seemed to disagree. One reply asks what lies behind a clinic's rising receivables; the other uses Datar and Rajan to explain depreciation and cash.
Reading the WMBA 6050 Week 1 rubric
Graders give the most credit to a post that connects the three statements into one account of the business. Accurate use of basic terms, such as distinguishing profit from cash and identifying deposits as a liability, is expected. Reaching a recommendation that follows from the numbers, in the form the prompt requires, shows the student read for a decision. Supporting that recommendation with a source on financing or accounting principles adds weight. Replies earn credit for asking what lies behind a classmate's figure or for explaining a concept a classmate found confusing. Writing a non-accountant could follow is also rewarded. The week's last points depend on brevity, punctual posting and properly formed references.
WMBA 6050 Week 1 help: mistakes that cost marks
Go through profit, then cash, then the balance sheet, and summarize each in a single sentence. Then ask why they differ: why cash did not rise with profit, or what obligations sit behind the cash on the balance sheet. Your recommendation should follow from that difference. Students often lose marks by summarizing each statement separately without connecting them, or by defining terms at length instead of interpreting the numbers. Another frequent gap is a recommendation that has nothing to do with the figures discussed. Round large figures so the post reads easily. Keep your employer's details general. For a custom sample post on your own organization's statements, send us the main figures.
Get a WMBA 6050 Week 1 example written to your instructions
Send the week 1 prompt together with your section's rubric and a sample thread comes back within 24-48 hours, the opening request free. If your instructor names a specific company or supplies a case packet, include it and the sample reads those statements rather than a substitute.
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WMBA 6050 Week 1 questions, answered
Where can I find a free WMBA 6050 Week 1 sample paper?
Read the full three statements discussion post for a golf club, with both replies, right here.
What does the income statement show?
Profit of $407,000 on revenue of $4.83 million.
Why did cash fall despite the profit?
The club spent $610,000 on irrigation, repaid $200,000 of debt and distributed $100,000 to the owners.
Why are wedding deposits a liability?
The club has been paid but has not yet delivered the events, so the money is owed until they happen.
What does the post recommend?
Financing the remaining irrigation work with a term loan rather than operating cash and deposits.