Republic of the Philippines

Department of Education
Region IV-A CALABARZON
SCHOOLS DIVISION OF CAVITE

TRECE MARTIRES CITY SENIOR HIGH SCHOOL

Trece Martires City, Cavite

LESSON PLAN IN ACCOUNTANCY, BUSINESS AND MANAGEMENT 12

Second Semester SY 2018-2019

Date : Week 10-Session 1 (July 30, 2018)

Subject : BUSINESS FINANCE
Teacher : EMELEN A. VERANO
Schedule : Monday - ABM 2 – 1:30 – 2:30 and
Tuesday – ABM 1 – 12:30 -1:30

I. Learning Competency:
The learners shall be able to illustrate the formula and format for the preparation of budgets and
projected financial statement. (ABM_BF12-IIIc-d-11)

II. Performance Standard:

The learners will be able to prepare budgets and projected financial statement.

III. Objectives:
1. Understand the budget and projected financial statement.
2. Illustrate the formula to be used.
3. Apply the projected financial statement in real situation.
TIME
ACTIVITIES
ALLOTMENT
ROUTINARY ACTIVITIES:
 Prayer
 Greetings
 Checking of attendance
5 minutes
 Checking of classroom condition
 Energizer
 Recall

Motivation
A. Think-Pair Share.
Each pair will share ideas on how to manage their budget “baon” everyday and
5 minute
prepare forecast budget for one month to meet their savings amounting to P200 s
s month.

B. B. Establishing purpose for the lesson (Inquiry-Based Approach)

1. Do you find difficult in managing your budget for one month?
2. What do you consider in preparing your daily budget?
3. What is the importance of a budget?
4. What will happen if the budget is not met?

40 minutes LESSON PROPER

Unlocking of Terms
A budget is financial plan of the resources needed to carry out tasks and meet financial
goals.
 A master budget represent summary of all of management’s plan and goal for the future
(covering the period of one year or less).

A quantified plan is represented through budgets and projected or pro-forma financial

statements, which are useful for controlling. They serve as the bases for monitoring
actual performance.
Multiple
Intelligence 1. Sales Budget is the most important account in the financial statement in making
a forecast because most of the expenses are correlated with sales.

External (Macroeconomic Variables) Internal (Microeconomic Variables)

 GDP growth rate  Production capacity
 Inflation  Man power requirements
 Interest rate  Management style of
 Foreign Exchange Rate managers
 Income Tax Rates  Reputation and network of the
 Developments in the industry controlling stockholders
 Competition  Financial resources of the
 Economic crisis company
 Regulatory environment
 Political crisis
Table1. Factors that Influence Sales.

2. Production Budget provides information regarding the number of units that

should be produced over a given accounting period based on expected sales
and targeted level of ending inventories.

Required production = Expected Sales + Target Ending - Beginning

In units Inventories Inventories
Note: Ending inventory of current period is beginning inventory of next period.

3. Budgeting Cash refers to the variable and fixed costs needed to run the
operations of the company but are not directly attributable to the generation of
sales like rent payments, wages and salaries of selling and administrative
personnel, administrative costs, travel and representation expenses,
professional feed, interest payments, and tax payments.

4. Cash Budget or Cash forecast is a statement of the firm’s planned inflows and
outflows of cash it is used by the firm to estimate its short-term cash
requirements, with particular attention being paid to planning for surplus cash
and for cash shortages. It is also a control tool to monitor the way the company
handles cash.

Steps in formulating a cash budget:

a) From the sales forecast, identify how much would be collected in the
cash budget period.
b) Identify other receipts like interest received, return on principal
investments, issuance of capital stock, proceeds from sale o non-
operating assets, and proceed from borrowings
c) From the production budget, identify how much of the purchases made
will be paid by the company on the cash budget period like sales,
purchases may be made in cash or on credit depending on the supplier’s
credit terms.
d) From operations budget, identify which expenses will be paid in cash
 during the cash budget period like rent payments, wages and salaries,
and tax payments.
e) Identify all other cash payments to be made like fixed-asset purchases in
cash, cash dividend payments, principal payments, repurchase of
common stock, purchase of stock/bond investments
f) Match the receipts and disbursements on the period they become
collectible and payable
g) Set a minimum required cash balance
h) If the net cash flow is above the minimum cash balance, the company is
in excess cash and consider putting it in short-term investments.

5. Projected Financial Statements is a tool of the company to set an overall goal

of what the company’s performance and position will be for and as of the end of
the year. It sets targets to control and monitor the activities of the company.
Reports may be forecasted:
 Projected Income Statement
 Projected Statement of Financial Position
 Projected Statement of Cash Flow

The projected financial statement method is straight forward. One simply projects the
asset requirements for the coming period, then projects the liabilities and equity that will
be generated under normal operations, and subtracts the projected liabilities/capital
from the required assets to estimate the additional funds needed.

Steps on Financial Statement Projection.

a) Forecast Sales
b) Forecast Cost of Sales and Operating Expenses
c) Forecast Net Income and Retained Earnings
d) determine balance sheet items that will vary with sales
e) Determine payment schedule for loans
f) Check for other information
g) Determine external funds needed (EFN)
h) Determine how external funds needed may be financed.

Group Activity:
DIRECTION: The students will be grouped into 5 to compute using financial forecasting
(percent of sales method), they will determine whether the company has external
financing need s or a surplus of funds.
projected financial statement based on the given task.
Note. The printed illustrative case of the ABM Company will be given to the class.

SYNTHESIS/GENERALIZATION

Financial forecasting and budgeting are related, but different, process.

Budget is part of the planning process. Forecasts indicate what the firm expects to
happen, while goals represent what a firm wants to happen. Forecasts do not plan for a
result, but predict something such as the level of inflation or interest rates or other
expansion plans of the firm

5 minutes
ASSESSMENT/EVALUATION
Directions: Compute the following.

1. Prepare an ABM Company forecast sates in units for January to May as follows.

Jan Feb Mar April May

 Units 2,000 2,200 2,500 2,800 3,000

Note: ABM Company would like to maintain 100 units in its ending inventory at
the end of each month. Beginning inventory at the start of January amounts to
50units. How many units should the company produce in order to fulfill the
expected sales of the company?

Agreement: Assignment
Explain tools in managing cash, receivables, and inventory
5 minutes
REMARKS:

Prepared by: Checked by:

EMELEN A. VERANO LIBRADA A. VIDALLON ERNESTO M. MOJICA

Teacher III Master Teacher I Principal II
 Republic of the Philippines
Department of Education
Region IV-A CALABARZON
SCHOOLS DIVISION OF CAVITE

TRECE MARTIRES CITY SENIOR HIGH SCHOOL

Trece Martires City, Cavite

LESSON PLAN IN ACCOUNTANCY, BUSINESS AND MANAGEMENT 12

Second Semester SY 2018-2019

Date : Week 10-Session 2 (JULY 31, 2018)

Subject : BUSINESS FINANCE
Teacher : EMELEN A. VERANO
Schedule : Tuesday – ABM 2 – 5:00 -6:00 and
Wednesday – ABM 1 – 3:00 -4:00

I. Learning Competency:
The learners shall be able to explain tools in managing cash, receivables, and inventory
ABM_BF12-IIIc-d-12

II. Performance Standard:

The learners will be able to describe the concepts and tools in managing cash, receivables, and
inventories.

III. Objectives:
1. Understand the useful tools in managing cash, receivables, and inventories.
2. Explain the tools;
3. Apply the basic and effective managing cash, receivables, and inventory
TIME
ACTIVITIES
ALLOTMENT
ROUTINARY ACTIVITIES:
 Prayer
 Greetings
 Checking of attendance
5 minutes
 Checking of classroom condition
 Energizer
 Recall

Motivation
5 minute A.Think-Pair-Share
s Each pair will say the amount of their baon every day and how they manage it.

B. Establishing purpose for the lesson (Inquiry-Based Approach)

 Did you find difficulty in managing your baon?
 How do you manage your baon?
 Why do you need to manage your baon?

40 minutes LESSON PROPER

Cash Management involves the maintenance of a cash and marketable securities

investment level which will enable the company to meet its cash requirements and at
the same time optimize the income on idle funds.
 Objectives of Cash Management
1. To meet the cash disbursement needs
2. To minimize the funds committed to transactions and precautionary cash
balances
3. To avoid misappropriation and handling losses in the normal course of business.

Multiple Reasons for Holding Cash

Intelligence 1. Transaction Motive
2. Precautionary Motive
3. Speculative Motive
4. Contractual Motive

Techniques for lessening Cash needs

1. Accelerating collections
2. Slowing disbursements
3. Reducing the transactions and precautionary idle cash

Cash receipts include all of a firm’s inflows of cash in a given financial period. The most
common components of cash receipts are cash sales, collections of accounts
receivable, and other cash receipt.

Receivable Management
The policy of accounts receivable is to encourage sales and gain additional customers
by extending credit.

Objective of Receivable management

1. To evaluate the pertinent costs and benefits related to credit extension
2. To implement the firm’s chosen credit policy
3. To enforce collection
4. To finance the firm’s investment

Factors in determining accounts receivable policy

1. Credit Standards
2. Credit Terms
3. Collection Program
4. Delinquency and default

Inventory Management is the stockpile of the product the firm is offering the sale and
the components that make up the product.

Objective of Inventory Management

1. To maintain a sufficient amount of inventory to insure the smooth operation of the
firm’s production and marketing functions
2. To avoid tying up funds in excessive and slow-moving inventory

Functions of Inventories
1. Pipeline or transit inventories
2. Organizational or decoupling inventories
3. Seasonal or anticipation stock
4. Batch or lot-size inventories
5. Safety or buffer stock

Three types of inventory in A Manufacturing Company

 Raw materials
  Work in process
 Finished goods

Group Activity

DIRECTION: The students will be grouped into 5 to prepare the cash receipts to
manage cash budget. Note. The printed illustrative case is given to the class.

Rubrics for Scoring

Criteria Score

Content 5

Presentation 5

Cooperation 5

Total Score 15

SYNTHESIS/GENERALIZATION
Cash is an important account in the balance sheet that will affect the liquidity, and
solvency of a company. It is also the most vulnerable when it comes to theft.
Proper management of accounts receivable entails having a good billing and
collection system.
Proper inventory management involves the determination of reasonable levels of
inventories considering the size and nature of business. Maintaining too much
inventories has costs such as carrying or holding costs, possible spoilage.

ASSESSMENT/EVALUATION
Direction. True or False
1. Cash Management is the stockpile of the product the firm is offering the sale and
the components that make up the product.
2. Cash Management involves the maintenance of a cash and marketable
5 minutes
securities investment level.
3. Seasonal or anticipation stock is one of the functions of inventory.
4. The objective of receivable management is to enforce collection.
5. Reducing the transactions and precautionary idle cash is the technique for
lessening cash needs.

Agreement: Assignment:
5 minutes Be ready for a long test on next meeting.

REMARKS:

Prepared by: Checked by:

EMELEN A. VERANO LIBRADA A. VIDALLON ERNESTO M. MOJICA

Teacher III Master Teacher I Principal II
 Republic of the Philippines
Department of Education
Region IV-A CALABARZON
SCHOOLS DIVISION OF CAVITE

TRECE MARTIRES CITY SENIOR HIGH SCHOOL

Trece Martires City, Cavite

LESSON PLAN IN ACCOUNTANCY, BUSINESS AND MANAGEMENT 12

Second Semester SY 2018-2019

Date : Week 10-Session 3 (August 1, 2018)

Subject : BUSINESS FINANCE
Teacher : EMELEN A. VERANO
Schedule : Wednesday – ABM 2 1:30-2:30 and
Friday - ABM 1 1:30- 2:30

I. Learning Competency:
The learner will be able to
1. prepare financial statements (ABM_BF12-IIIb-6)
2. define the measurement levels, namely, liquidity, solvency, stability, and profitability (ABM_BF12-IIIb-
7)
3. perform vertical and horizontal analyses of financial statements of a single proprietorship (ABM_BF12-
IIIb-8)
4. compute, analyze, and interpret financial ratios such as current ratio, working capital, gross profit ratio,
net profit ratio, receivable turnover, inventory turnover, debt-to- equity ratio, and the like (ABM_BF12-
IIIb-9)
5. identify the steps in the financial planning process (ABM_BF12-IIIc-d-10)
6. illustrate the formula and format for the preparation of budgets and projected financial statement
(ABM_BF12-IIIc-d-11)
7. explain tools in managing cash, receivables, and inventory (ABM_BF12-IIIc-d-12)

III. Objectives:
1. understand the nature and scope of the subject.
2. write the expected skills and knowledge acquired from the subjects and the teacher.
3. convey knowledge through long examination.

TIME
ACTIVITIES
ALLOTMENT
ROUTINARY ACTIVITIES:
 Prayer
 Greetings
 Checking of attendance
5 minutes
 Checking of classroom condition
 Energizer
 Recall

5 minutes MOTIVATION

Call some students and review some possible questions similar to long examination.
 Let the students recall all the topics discussed from Financial Statement to Managing
HOTS of Cash, Receivable, and Inventory.

The teacher will explain why they need to get a long examination.
Teacher will ask some possible questions relevant to examination.

Teacher explains the relevance of taking this quiz.

LESSON PROPER

A. Discuss the instructions of long quiz and the allotted time to answer the
40 minutes examination.

B. Long quiz 2 – Preparation of Financial Statement to Managing of Cash,

Receivable, and Inventory

C. Checking of Test

0 minutes ASSESSMENT/EVALUATION

0 minutes CLOSURE

Prepared by: Checked by:

EMELEN A. VERANO LIBRADA A. VIDALLON ERNESTO M. MOJICA

Teacher III Master Teacher I Principal II