Lesson Exemplar in English for Academics and Professional Purposes (EAPP) Using the IDEA

Instructional Process
Modular Distance Learning
(Learners-Led Modality)

This lesson exemplar is anchored to the learner’s module.

This sample is part of Enclosure 7 of RM No. 296, s. 2020.

School Tanauan School of Grade Level Grade 12

Fisheries – Senior High
School
Teacher DIVINA GRACE M. Learning Area Business
LESSON RODRIGUEZ Finance
EXEMPLAR
Teaching Quarter First
Date Quarter
Teaching No. of Days 8
Time

I. Objectives  At the end of the lesson, the learners are expected to:
a. to know the financial planning tools and concepts;
b. to be able to prepare budgets and projected financial statements; and
c. to create financial statements based on real-life situations.

A. Content The learners demonstrate an understanding of the financial planning

Standards process, including budget preparation, cash management, and working
capital management.
B. Performance The learners are able to:
Standards 1. illustrate the financial planning process;
2. prepare budgets such as projected collection, sales budget,
production budget, income projected statement of comprehensive
income, projected of financial position, and projected cash flow
statement; and
3. describe concepts and tools in working capital management.
C. Most Essential 1. Identify the steps in the financial planning process (ABM_BF12-IIIc-d-
Learning 10);
Competencies 2. Illustrate the formula and format for the preparation of budgets and
projected financial statement (ABM_BF12-IIIc-d-11); and
3. Explain tools in managing cash, receivables, and inventory (ABM_BF12-
IIIc-d-12).

D. Enabling N/A
Competencies
II. CONTENT Financial Planning Tools and Concepts
III. LEARNING
RESOURCES
A. References
Teacher’s Guide N/A
pages
Learner’s Material N/A
Pages
Textbook pages
Additional Material Arthur S. Cayanan and Daniel Vincent H. Borja, 2017 Business Finance
from Learning First Edition, Manila Philippines
Resources
Ma. Elenita Balatbat Cabrera and Gilbert Anthony B. Cabrera, Business
Finance Principle and Apllication 2017 Edition, Manila Philippines
 https://investinganswers.com/dictionary/w/working-capital
https://www.proprofs.com/quiz-school/story.php?title=financial-planning-
process
List of Learning Vibal group Inc. and Florenz C. Tugas, Aeson Luiz C. Dela Cruz, Alloysius
Resources for Joshua S. Paril, and Alger C. Tang. Business Finance, Araneta Avenue,
Development and Quezon City
Engagement
Activities The Commission on Higher Education in collaboration with the Philippine
Normal University: Teaching guide for Senior High School
IV. PROCEDURES
A. Introduction What I need to know?
After going through this module, you are going to:
1. Illustrate the financial planning process
2. Prepare budgets such as projected collections, sales budget,
production budget, income-projected statement of comprehensive
income, projected of financial position, and projected cash flow statement
3. Describe concepts and tools in working capital management
What’s New?
Direction: Supply the missing amount of the receipts from sales.

Jan Feb Mar Apr May Total

Units 2,000 2,20 2,500 2,800 3,000 _______

0 _

Sales in Pesos 200,00 220,00 250,000 280,00 300,000 1,250,00

0 0 0 0

Collection from 40,00 44,00 _______ 56,00 60,000 250,00

monthly sales
(Sales in Pesos x 0 0 ___ 0 0
20%)

Collection from None _______ 110,000 125,00 140,000 150,000

previous monthly
sales (Sales in _ 0
Pesos x 50%)

Collection from None None 60,000 ______ 75,00 84,000

two months prior
sales (Sales in ___ 0
Pesos x 30%)

Total Collections 40,000 144,00 220,000 247,00 275,000 926,000

from sales
0 0

B. Development What I Know?

Let us determine how much you already know about the financial planning
tools and concepts.
Direction: Read each question carefully, choose the letter with the correct
answer and write your answer on the space before each number.

_____1. What are the two management functions reinforce each other for the
success of an organization.
A. Planning and Controlling C. Staffing and Planning
B. Controlling and Directing D. Organizing and Planning
_____2. Which of the following is not part of financial planning process?
A. Identify goal related task C. Identify resources
B. Set goals/Objectives D. Establish strong Management
_____3. A plan expresses in quantitative terms, which emphasizes the
resource use and resource allocation of an entity over a specified
period of time?
A. Sales C. Sales Budget
B. Budget D. Cash Budget
_____4. Which of the process to closely monitoring of in and out of cash in
the business?
A. Cash flow statement C. Statement of financial Position
B. Income statement D. Budgeting
_____5. It 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.
A. Forecasting C. Budgeting
B. Inventory D. Projected Financial Statement
_____ 6. Components of a firm’s cash conversion cycle include:
A. average collection period, average age of inventory
B. average payment, average collection period
C. average age of inventory and average payment period
D. average age of inventory, average collection period and average
payment
_____7. Which of the following statements is true regarding working capital
management?
A. There is a risk and profitability tradeoff in working capital
management
B. A firm’s working capital is not essential in managing its operations
C. Cash, inventory and long-term receivables are common working
capital components
D. All statements are true
_____8. Which of the following is not a common collection technique for
accounts receivables?
A. Sending letter of demands C. sending legal notices
B. making phone calls D. writing off customer’s accounts
_____9. It is a technique used in granting credit to customers.
A. Credit score C. Credit limit
B. Credit standards D. All of the above.
_____10. It represents assets of the entity that expected to be collected and
thus, converted to cash.
A. Inventory Management C. Accounts Receivable Management
B. Marketable Securities Management D. Cash Management
What’s In?
Direction: Complete the elements of the financial system.
 What is it?
What is Financial Planning process? Read the module regarding the
financial planning and concepts, preparation of budgets and projected
financial statement.

C. Engagement What’s More?

Direction: Compute the Net Working Capital of ABC Company. See table
below and answer directly.
ABC Company
Balance Sheet
Cash P 60,000 Account Payable P 30,000
Marketable 10,000 Accrued Expense 20,000
Securities
Accounts receivable 40,000 Notes Payable 5,000
Inventory 50,000 Current Portion-Long 10,000
term debt
Total Current 160,000 Total Current 65,000
Assets Liabilities

Required:
1. How much is the net working capital of ABC Company?
2. Is it positive or negative? Explain briefly.

What I Can Do?

Directions: Identify the term is being describe by each statement
____________________ 1. Shows the planned inflows and outflows of cash in
the entity for a given period.
____________________ 2. It refers to company’s investment in short term asset
such as cash, inventory, short-term marketable
securities, and account receivable
_____________________3. The applicant’s record of meeting its past obligations
has judged.
____________________4. Firms operating cycle begin from the time goods for
sale has manufactured to the eventual collection of
cash from the sale of these goods.
____________________5. Cash needed to facilitate the normal transactions of
the business, that is, to carry out its purchases and
sales activities.

What Other Activities Can I Engage In?

Direction: Write and explain the 6 steps in Financial Planning process for
your own Business (Choose any business).
___________________________________________________________________________
___________________________________________________________________________
 ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.
D. Assimilation What I Have Learned?
Activity 2.4
Direction: Read and understand the case below and continue to fill in the
sales budget table.
1. XYZ Merchandising, which is engaged in the reselling of branded bags, is
in the process of preparing its budgets for the calendar year 2016. Last year,
XYZ was able to sell 1,500 bags with a selling price of 2,500 per bag. For the
current year, the basis of both external and internal information. First
quarter sales expected to be 400 bags. The firm also expects that unit sales
per quarter would increase by 10%. Selling price is also expected to increase
by 5% for 2016.
XYZ Merchandising
Sales Budget
For the year ended December 31, 2016
1st quarter 2nd 3rd 4th Total
quarter quarter quarter
Expected Ex. 400
Sales in Units

Unit Sales 2,625

price

Total Sales 1,050,000

Required:
1. Complete the projected sales budget for each quarter.
2. How much is the total projected sales budget?

What I Can do?

Direction: Answer the problem below and forecast the Income statement
using percent of Sales Method.
The Gospel Company has the following statements, which are representative
of the company’s historical average.
Gospel Company
Income Statement
For the year ended Dec. 31, 2018

Sales P 2,500,000
Cost of Sales (1,500,000)
Gross profit 1,000,000
Operating expenses (380,000)
Earnings before interest and taxes 620,000
Interest expense 80,000
Earnings before taxes 540,000
Taxes (35%) (189,500)
Net Income/Earnings after taxes P 350,500

Dividends P 140,200
 Additional Information:
1. The firm is expecting a 25% increase in sales next year.
2. The company expecting to declare 30% of dividend

Required:
1. Prepare the projected income statement of Gospel Company.
2. How much is the net income?
3. How much is the dividend?
V. REFLECTION Directions: Using the prompts below, write your personal insights about the
lesson in your notebook or portfolio.

I understand that _________________________________________________________

___________________________________________________________________________
I realized that _____________________________________________________________
___________________________________________________________________________

Prepared by: Checked by:

DIVINA GRACE M. RODRIGUEZ KRISTINE ANN I. CARANDANG

Teacher II Master Teacher II

Noted by:

SHIRLEY C. SIMAN ROWENA C. TERCERO

Vocational School Administrator Public School District Supervisor – West I

Validated by:

RONALDO V. RAMILO
Education Program Supervisor

EDNA U. MENDOZA, Ph. D.

Chief Education Supervisor
Curriculum Implementation Division

Recommending Approval:

RHINA O. ILAGAN, Ed. D

Officer-In-Charge - Assistant Schools Division Superintendent

Approved:

ROGELIO F. OPULENCIA
Officer-In-Charge - Schools Division Superintendent