Business Finance TG.pdf

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Teaching Guide for Senior High School
BUSINESS
FINANCE
SPECIALIZED SUBJECT
This Teaching Guide was collaboratively developed and reviewed by educators
from public and private schools, colleges, and universities. We encourage
teachers and other education stakeholders to email their feedback, comments,
and recommendations to the Commission on Higher Education, K to 12
Transition Program Management Unit - Senior High School Support Team at
k12@ched.gov.ph. We value your feedback and recommendations.
The Commission on Higher Education
in collaboration with the Philippine Normal University
This Teaching Guide is a donation by CHED to DepEd. It is for reference purposes only.

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This Teaching Guide by the
Commission on Higher Education is
licensed under a Creative
Commons Attribution-
NonCommercial-ShareAlike 4.0
International License. This means
you are free to:
Share — copy and redistribute the
material in any medium or format
Adapt — remix, transform, and
build upon the material.
The licensor, CHED, cannot revoke
these freedoms as long as you
follow the license terms. However,
under the following terms:
Attribution — You must give
appropriate credit, provide a link to
the license, and indicate if changes
were made. You may do so in any
reasonable manner, but not in any
way that suggests the licensor
endorses you or your use.
NonCommercial — You may not use
the material for commercial
purposes.
ShareAlike — If you remix,
transform, or build upon the
material, you must distribute your
contributions under the same license
as the original.
Development Team
Team Leader: Arthur S. Cayanan, Ph.D.
Writers: Jerelleen A. Rodriguez, Al-Habbyel B.
Yusoph, Rachelleen A. Rodriguez, Diogenes C. Dy
Technical Editors: Pamela Anne S. Lloren, Ma.
Andrea Antonino-Balce
Copyreader: Patricia Carmela I. Lumanlan
Illustrator: Patricia G. De Vera
Published by the Commission on Higher Education, 2016
Chairperson: Patricia B. Licuanan, Ph.D.
Commission on Higher Education
K to 12 Transition Program Management Unit
Office Address: 4th Floor, Commission on Higher Education,
C.P. Garcia Ave., Diliman, Quezon City
Telefax: (02) 441-0927 / E-mail Address: k12@ched.gov.ph
Senior High School Support Team
CHED K to 12 Transition Program Management Unit
Program Director: Karol Mark R. Yee
Lead for Senior High School Support:
Gerson M. Abesamis
Course Development Officers:
John Carlo P. Fernando, Danie Son D. Gonzalvo,
Stanley Ernest G. Yu
Lead for Policy Advocacy and Communications:
Averill M. Pizarro
Teacher Training Officers:
Ma. Theresa C. Carlos, Mylene E. Dones
Monitoring and Evaluation Officer:
Robert Adrian N. Daulat
Administrative Officers:
Ma. Leana Paula B. Bato, Kevin Ross D. Nera,
Allison A. Danao, Ayhen Loisse B. Dalena
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Louis Compound 7, Baesa, Quezon City, ectec_com@yahoo.com
Consultants
THIS PROJECT WAS DEVELOPED WITH THE PHILIPPINE NORMAL UNIVERSITY.
University President: Ester B. Ogena, Ph.D.
VP for Academics: Ma. Antoinette C. Montealegre, Ph.D.
VP for University Relations & Advancement: Rosemarievic V. Diaz, Ph.D.
Ma. Cynthia Rose B. Bautista, Ph.D., CHED
Bienvenido F. Nebres, S.J., Ph.D., Ateneo de Manila University
Carmela C. Oracion, Ph.D., Ateneo de Manila University
Minella C. Alarcon, Ph.D., CHED
Gareth Price, Sheffield Hallam University
Stuart Bevins, Ph.D., Sheffield Hallam University

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Table of Contents
Introduction to Financial Management Part 3 170
Part 1 1 Part 4 184
Part 2 10 Sources and Uses of Short-Term and Long-Term Funds
Part 3 19 Part 1 201
Review of Financial Statement Preparation, Analysis, and
Interpretation
Part 2
214
Part 1 37 Basic Long-term Financial Concepts
Part 7 94 Introduction to Investment
Financial Planning Tools and Concepts Part 2 300
Part 1 119 Managing Personal Finance 314
Part 2 139 Biographical Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323

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Introduction
As the Commission supports DepEd’s implementation of Senior High School (SHS), it upholds the vision
and mission of the K to 12 program, stated in Section 2 of Republic Act 10533, or the Enhanced Basic
Education Act of 2013, that “every graduate of basic education be an empowered individual, through a
program rooted on...the competence to engage in work and be productive, the ability to coexist in
fruitful harmony with local and global communities, the capability to engage in creative and critical
thinking, and the capacity and willingness to transform others and oneself.”
To accomplish this, the Commission partnered with the Philippine Normal University (PNU), the National
Center for Teacher Education, to develop Teaching Guides for Courses of SHS. Together with PNU, this
Teaching Guide was studied and reviewed by education and pedagogy experts, and was enhanced with
appropriate methodologies and strategies.
Furthermore, the Commission believes that teachers are the most important partners in attaining this
goal. Incorporated in this Teaching Guide is a framework that will guide them in creating lessons and
assessment tools, support them in facilitating activities and questions, and assist them towards deeper
content areas and competencies. Thus, the introduction of the SHS for SHS Framework.
The SHS for SHS Framework, which stands for “Saysay-Husay-Sarili for Senior High School,” is at the
core of this book. The lessons, which combine high-quality content with flexible elements to
accommodate diversity of teachers and environments, promote these three fundamental concepts:
SAYSAY: MEANING
Why is this important?
Through this Teaching Guide,
teachers will be able to facilitate
an understanding of the value
of the lessons, for each learner
to fully engage in the content
on both the cognitive and
affective levels.
HUSAY: MASTERY
How will I deeply understand this?
Given that developing mastery
goes beyond memorization,
teachers should also aim for
deep understanding of the
subject matter where they lead
learners to analyze and
synthesize knowledge.
SARILI: OWNERSHIP
What can I do with this?
When teachers empower
learners to take ownership of
their learning, they develop
independence and self-
direction, learning about both
the subject matter and
themselves.
SHS for SHS
Framework

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This Teaching Guide is mapped and aligned to the DepEd SHS Curriculum, designed to be highly
usable for teachers. It contains classroom activities and pedagogical notes, and is integrated with
innovative pedagogies. All of these elements are presented in the following parts:
1. Introduction
• Highlight key concepts and identify the essential questions
• Show the big picture
• Connect and/or review prerequisite knowledge
• Clearly communicate learning competencies and objectives
• Motivate through applications and connections to real-life
2. Motivation
• Give local examples and applications
• Engage in a game or movement activity
• Provide a hands-on/laboratory activity
• Connect to a real-life problem
3. Instruction/Delivery
• Give a demonstration/lecture/simulation/hands-on activity
• Show step-by-step solutions to sample problems
• Give applications of the theory
• Connect to a real-life problem if applicable
4. Practice
• Discuss worked-out examples
• Provide easy-medium-hard questions
• Give time for hands-on unguided classroom work and discovery
• Use formative assessment to give feedback
5. Enrichment
• Provide additional examples and applications
• Introduce extensions or generalisations of concepts
• Engage in reflection questions
• Encourage analysis through higher order thinking prompts
6. Evaluation
• Supply a diverse question bank for written work and exercises
• Provide alternative formats for student work: written homework, journal, portfolio, group/individual
projects, student-directed research project
Parts of the
Teaching Guide

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As Higher Education Institutions (HEIs) welcome the graduates of
the Senior High School program, it is of paramount importance to
align Functional Skills set by DepEd with the College Readiness
Standards stated by CHED.
The DepEd articulated a set of 21st
century skills that should be
embedded in the SHS curriculum across various subjects and tracks.
These skills are desired outcomes that K to 12 graduates should
possess in order to proceed to either higher education,
employment, entrepreneurship, or middle-level skills development.
On the other hand, the Commission declared the College
Readiness Standards that consist of the combination of knowledge,
skills, and reflective thinking necessary to participate and succeed -
without remediation - in entry-level undergraduate courses in
college.
The alignment of both standards, shown below, is also presented in
this Teaching Guide - prepares Senior High School graduates to the
revised college curriculum which will initially be implemented by AY
2018-2019.
College Readiness Standards Foundational Skills DepEd Functional Skills
Produce all forms of texts (written, oral, visual, digital) based on:
1. Solid grounding on Philippine experience and culture;
2. An understanding of the self, community, and nation;
3. Application of critical and creative thinking and doing processes;
4. Competency in formulating ideas/arguments logically, scientifically, and creatively; and
5. Clear appreciation of one’s responsibility as a citizen of a multicultural Philippines and a
diverse world;
Visual and information literacies, media literacy, critical thinking
and problem solving skills, creativity, initiative and self-direction
Systematically apply knowledge, understanding, theory, and skills for the development of
the self, local, and global communities using prior learning, inquiry, and experimentation
Global awareness, scientific and economic literacy, curiosity,
critical thinking and problem solving skills, risk taking, flexibility
and adaptability, initiative and self-direction
Work comfortably with relevant technologies and develop adaptations and innovations for
significant use in local and global communities
Global awareness, media literacy, technological literacy,
creativity, flexibility and adaptability, productivity and
accountability
Communicate with local and global communities with proficiency, orally, in writing, and
through new technologies of communication
Global awareness, multicultural literacy, collaboration and
interpersonal skills, social and cross-cultural skills, leadership
and responsibility
Interact meaningfully in a social setting and contribute to the fulfilment of individual and
shared goals, respecting the fundamental humanity of all persons and the diversity of
groups and communities
Media literacy, multicultural literacy, global awareness,
collaboration and interpersonal skills, social and cross-cultural
skills, leadership and responsibility, ethical, moral, and spiritual
values
On DepEd Functional Skills and CHED College Readiness Standards

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K to 12 BASIC EDUCATION CURRICULUM
SENIOR HIGH SCHOOL – ACADEMIC TRACK
K to 12 Senior High School Accountancy, Business and Management Strand – Business Finance May 2016 Page 1 of 7
Grade: 12 Semester: 2nd
Core Subject Title: Business Finance No. of Hours/ Semester: 80 hours/ semester
Prerequisite: Fundamentals of ABM1
Co-requisite: Fundamentals of ABM2
Subject Description: This course deals with the fundamental principles, tools, and techniques of the financial operation involved in the management of business
enterprises. It covers the basic framework and tools for financial analysis and financial planning and control, and introduces basic concepts and principles needed in making
investment and financing decisions. Introduction to investments and personal finance are also covered in the course. Using the dual-learning approach of theory and
application, each chapter and module engages the learners to explore all stages of the learning process from knowledge, analysis, evaluation, and application to preparation
and development of financial plans and programs suited for a small business.
CONTENT CONTENT STANDARD PERFORMANCE STANDARD LEARNING COMPETENCIES CODE
1. Introduction to Financial
Management
The learners demonstrate an
understanding of…
the definition of finance, the
activities of the financial
manager, and financial
institutions and markets
The learners are able to…
1. define Finance
2. describe who are
responsible for financial
management within an
organization
3. describe the primary
activities of the financial
manager
4. describe how the financial
manager helps in achieving
the goal of the organization
5. describe the role of
financial institutions and
markets
The learners…
1. explain the major role of
financial management and
the different individuals
involved
ABM_BF12-IIIa-1
2. distinguish a financial
institution from financial
instrument and financial
market
ABM_BF12-IIIa-2
3. enumerate the varied
financial institutions and
their corresponding
services
ABM_BF12-IIIa-3
4. compare and contrast the
varied financial
instruments
ABM_BF12-IIIa-4
5. explain the flow of funds
within an organization –
through and from the
enterprise—and the role of
the financial manager
ABM_BF12-IIIa-5

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2. Review of Financial
Statement Preparation,
Analysis, and Interpretation
the process of preparing
financial statements as well as
the methods or tools of analysis
of financial statements, including
horizontal analysis, vertical
analysis, and financial ratios to
test the level of liquidity,
solvency, profitability, and
stability of the business
solve exercises and problems
that require financial statement
preparation, analysis, and
interpretation using horizontal
and vertical analyses and
various financial ratios
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

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3. Financial Planning Tools and
Concepts
the financial planning process,
including budget preparation,
cash management, and working
capital management
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
3. describe concepts and tools
in working capital
management
1. identify the steps in the
financial planning process
ABM_BF12-IIIc-d-10
2. illustrate the formula and
format for the preparation
of budgets and projected
financial statement
ABM_BF12-IIIc-d-11
3. explain tools in managing
cash, receivables, and
inventory
ABM_BF12-IIIc-d-12
4. Sources and uses of short-
term and long-term funds
the sources and uses of short-
term and long-term funds , and
the requirements , procedure ,
obligation to creditor, and
reportorial necessities
1. distinguish debt and equity
financing
2. identify the bank and
nonbank institutions in the
vicinity that are possible
sources of funds, and
enumerate their
requirements and process
for loan application
1. cite bank and nonbank
institutions in the locality
that would serve as
possible sources of funds
for business operations
ABM_BF12-IIIe-f-13
loan requirements of the
different bank and
nonbank institutions
ABM_BF12-IIIe-f-14
3. draw a flow chart on the
steps in loan application
ABM_BF12-IIIe-f-15
4. list down obligations of
entrepreneurs to creditors
ABM_BF12-IIIe-f-16
5. identify uses of funds ABM_BF12-IIIe-f-17

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5. Basic Long-term Financial
Concepts
basic concepts of risk and
return, and the time value of
money
1. distinguish simple and
compound interest
2. solve exercises and
problems in computing for
time value of money with
the aid of present and
future value tables
3. prepare loan amortization
tables
4. compute for the net present
value of a project with a
conventional cash-flow
pattern
5. describe the risk-return
trade-off
1. calculate future value and
present value of money ABM_BF12-IIIg-h-18
2. compute for the effective
annual interest rate
ABM_BF12-IIIg-h-19
3. compute loan amortization
using mathematical
concepts and the present
value tables
ABM_BF12-IIIg-h-20
4. apply mathematical
concepts and tools in
computing for finance and
investment problems
ABM_BF12-IIIg-h-21
5. explain the risk-return
trade-off
ABM_BF12-IIIg-h-22

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6. Introduction to investment the definition, purpose, kinds,
advantages, and disadvantages
and the risks of investment
1. identify the types of
investments particularly
bank deposits , insurance,
real estate , hard assets,
mutual funds, and stocks
and bonds
2. indicate the advantages and
disadvantages of each type
of investment
3. explain the risks inherent in
each type of investment
different types of
investments
ABM_BF12-IVm-n-23
2. classify investment
according to its type and
features, and advantages
and disadvantages
ABM_BF12-IVm-n-24
3. measure and list ways to
minimize or reduce
investment risks in simple
case problems
ABM_BF12-IVm-n-25
7. Managing Personal Finance the philosophy and practices in
personal finance
1. identify money
management philosophy
2. apply basic personal finance
principles and practices in
earning, spending, saving,
and investing money
1. enumerate money
management philosophies
ABM_BF12-IVo-p-26
2. illustrate the money
management cycle and
gives examples of sound
practices in earning,
spending, saving, and
investing money
ABM_BF12-IVo-p-27

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CODE BOOK LEGEND
SAMPLE CODE: ABM_BF12-IIIa-1
LEGEND SAMPLE
First Entry
Track/ Strand
Accountancy, Business and
Management
Strand
ABM_BF12
underscore_
Track/ Strand Subject Business Finance
Grade Level 12
-
Roman Numeral
*Zero if no specific quarter
Quarter Quarter III
Lowercase Letter
*Put a hyphen (-) in between letters to indicate
more than a specific week
Week Week a
-
Arabic Number Competency
explain the major role of financial
management and the different
individuals involved
1

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References:
Bernstein, Leopold. Financial Statement Analysis, 4th
Ed. Illinois: Irwin, 2014.
Brealey, Richard A., Myers, Stewart.C. and Marcus, Alan .J. Fundamentals of Corporate Finance, 3rd Edition. New York: Mc-Graw Hill Co., 2014.
Brigham, Eugene F. Fundamentals of Corporate Finance, 8th Ed. Canada: Dryden, 2010
Cabrera, Elenita B. Management Advisory Services. Manila: Conanan, 2015.
Cabrera, Elenita B. Management Consulting. Manila: Conanan, 2015.
Cecchetti, Stephen G. Money, Banking and Financial Markets, 2nd Edition. 2010
Cruise, Tom. The Firm. DVD. Directed by Sydney Pollack. USA: Paramount, 1993.
Eakins, Stanley G. The Study Guide. North Carolina: East Carolina University, 2014.
Gitman, Lawrence J. and Joehnick, Michael D. Fundamentals of Investing, 8 th Edition. Boston: Addison Welsey, 2013.
Gitman, Lawrence J. Principles of Financial Management. New York: Pearson 2014
http://suppscentral.aw.com
Ilano, Alberto R. Investment Management and The Philippine Stock Market. Manila: FINEX, 2014
Melicher, Ronald W. and Norton,Edgar A. Introduction to Finance, Markets, Investments and Financial Management, 14th Edition. Canada: McGraw-Hill Ryerson Higher
Education, 2014.
Padilla, Nicanor B. Jr. How to Analyze Financial Statements. Manila: Conanan, 2007.
Pringle, John J. and Harris, Robert Samuel. Essentials of Managerial Finance, 2nd E. Canada: Dryden, 2014.
Saldana, Cesar G. Principles of Managerial Finance: Philippine Setting. Quezon City: AFA Publications, 2000.
Weston, Fred and Copland, Thomas E. Managerial Finance, 9th Ed., Canada: Dryden, 2012.
White, Gerald I., Sondhi, Ashwinpaul C., and Fried, Dov. The Analysis and Use of Financial Statements, New Jersey: Wiley, 2012.
www.aw-bc.com/gitman

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Business'Finance
Introduction to Financial Management
Content Standards
The learners demonstrate an understanding of the definition of finance, the
activities of the financial manager, and the financial institutions and markets.
Performance Standards
The learners will be able to define finance.
Learning Competency
The learners shall be able to explain the major role of financial management
and the different individuals involved. (ABM_BF12-IIIa-1)
Specific Learning Outcomes
The learners will be able to:
• Have an appreciation of what the overall objective of management should
be.
• Describe the goals of the firm and explain why maximizing the value of the
firm is an appropriate goal for a business.
• Identify factors that influence the change in market price.
1
90 MINS
LESSON OUTLINE
Introduction
/Motivation
Introduction to Finance and Key Concepts 40
Instruction Discussion of Shareholder’s Wealth 45
Enrichment Integration of learning 5
Materials Board Notes
Resources
(1) Cayanan, A. & Borja (forthcoming). Business Finance. Quezon
City. Rex Bookstore.
(2) Gitman, L. J. & Zutter C. J. (2012), Principles of Managerial
Finance (13th Ed), USA: Prentice-Hall

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DAY 1 SESSION
1. Distribute the Course Outline/Curriculum and read the subject description.
2. Go through the various topics and highlight the following:
• Coverage of first quarter exam
• Date of first quarter exam
• Coverage of second quarter exam
• Date of second quarter exam
3. Ask the learners to introduce themselves by answering the following suggested questions:
• What is your full name?
• What is your nickname?
• Why did you choose the ABM Strand?
• What are your expectations for this class?
4. Homework for next session:
5. On a sheet of paper, answer the following questions:
A. How much is your daily allowance? If not given daily, how much is your average allowance per day?
B. Write down all the items you spend money on. List the description and peso amount spent.
C. Compute for the balance of your allowance by deducting the expenses you listed from your daily allowance.
D. If the answer to Question C is positive, what do you do with the money left? If the answer is negative, where do you get additional
money?
INTRODUCTION/MOTIVATION (40 MINS)
1. Finance in Everyday Life
• Begin by presenting a scenario in everyday life (Try: the life of a high school student).
• Narrate the scenario in your own style or as prescribed below:
- Ask the learners how much allowance they are given to and how often do they receive it (daily, weekly, etc.)
- Continue discussing the activities done in a day from getting to school, to attending flag ceremony, classroom discussions, lunch breaks,
end of classes, occasional meriendas or going out with friends and playing computer games, going back home and going back out to a
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nearby store to buy autoload because they realized that they can’t end the day without texting
their crush.
- Ask learners how many have savings out of the allowance they get from their parents.
- End the story by identifying the expenses they incurred (i.e. tricycle fare, lunch, merienda,
computer games) and letting them recognize the value of savings and possibly investing at a
young age.
- Reveal that most of the activities they do involving decisions on where to use their allowance is a
finance decision.
2. Present Relevant Vocabulary
• Define Finance as follows:
- Finance can be defined as the science and art of managing money. (Gitman & Zutter, 2012)
• Engage the learners by exhausting from them the expenses they wrote down on their homework
and listing all these down on the board with the respective peso amounts. Try to get as many
answers as possible.
• Give an allowance cap based on the answers given by the learners during the beginning story. This
will serve as the average daily allowance that the class is able to spend.
• Go back to the list of expenses and ask for the total peso amount of the listed items. If the peso
amount exceeds the daily allowance, ask the learners which items should be dropped off from the
list. Cross out the items dropped but do not erase completely. Continue this until total items
remaining in the list can be covered by the daily allowance.
• Explain that the activity they did is called budgeting.
- Budgeting is the act of estimating revenue (in the form of their allowance) and expenses over a
period of time (in this case, on a daily basis).
- Inform them that budgeting will be further discussed in Lesson 3 – Financial Planning Tools.
• Go back to the activity and focus the learners’ attention on the surplus resulting from their
budgeting. Ask the learners who among them had answered on their homework which resulted in
savings or excess cash. Ask them what they do with the excess money.
- Possible answers:
3
Teacher Tips:
Terms Defined:
1. Finance
2. Budgeting
3. Investments
4. Sources of funds

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• Carry over to the next day
• Return to parents
• Save. Ask how and where? Coin savers, Hidden under their beds, Deposit in banks, Invest in stocks (rare answer)
- Explain that excess money presents an opportunity for investments.
Investments come in many forms that will generate income or appreciate in the future.
- Between hiding their cash under their bed and depositing it in the bank, it would be better to keep their money in bank deposits
because these earn interest.
- Inform the learners that investments will be discussed further in Lesson 6 – Introduction to investments.
• Go back to the activity that is written in the board. Post the question of what other problems they may face in making financial decisions. Let
them assume that all the expenses listed on the board (including those that were previously crossed out) are incurred during the day. Let
them compute how much more cash they would need to support all those expenses.
• Ask who among the learners who made their homework encountered the same situation. If none, ask them if ever they are in a situation
where they are short of cash, what would they do? Where will they get extra cash? What other sources of cash do they know?
- Possible answers:
• Ask from parents
• Borrow from a friend
• Fund raising activities
• Pawnshops
• 5/6
• Banks
- Explain that all their answers are sources of funds. When faced with financial difficulties (in this case, the lack of funds to meet the
current expenses) we look for people or institutions that will give us the money we need.
- Inform the learners that they will know more about where to get funds on Lesson 4 – Sources of short term and long term funding.
• Summarize the discussion by pointing out that, for individuals, Finance is concerned with decisions about:
- How much of their earnings they spend
- How much they save or how much they need
- How they invest their savings
- How they raise additional funds they need (Gitman)
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3. Review of Prerequisite Knowledge
• Tell the learners that once they graduate from school, they will no longer receive their daily allowance. Either they would be employed by a
company, manage their family business, or start up their own business.
• Ask the learners who among them wants to own their own business (get a raise of hands). Ask them what type of business organization is
owned by one person who operates it for his or her own profit (Answer: Sole Proprietorship).
• Continue to recall from ABM 1 the forms of business organizations:
- Sole Proprietorship - A business owned by one person and operated for his or her own profit.
- Partnership - A business owned by two or more people and operated for profit.
- Corporation – An entity created by law owned by shareholders.
• Ask the learners if they recall how they can be shareholders of a corporation (Answer: by buying stocks). At this point, ask them if they are
aware of big listed companies like PLDT, Globe, JFC, BPI, Banco Deo Oro, San Miguel Corporation, among others to interest them about the
subject.
• Ask how and where can they buy stocks?
- Corporations may either be privately owned or publicly owned.
- Privately owned corporations are often owned by family members whose stocks may not be offered to outsiders unless consent by the
family members is secured.
- Companies which are publicly listed are owned by unrelated investors and are traded in organized exchanges like the Philippine Stock
Exchange. While there are many stockholders, there is generally a group of investors or a family which controls each listed company. For
example, in the case of BPI, the biggest stockholder is Ayala Corporation and in the case of Banco De Oro, it is SM Investment
Corporation. Prices of stocks of listed corporations are driven by several factors such as the earnings of the companies, the prospects of
the industry where these companies operate, the general market sentiment, and the economic prospects of the country, among others.
4. Knowing the Shareholder
• Tell the learners to assume that they are the biggest shareholder in a corporation. Ask them the objectives they want to achieve as owners of
the corporation.
- Possible answers: Be profitable, Have a lot of cash
• Ask if they think a profitable company is a successful company. Can success be attributed to profitability only? Recall that the determination of
profit is based on the accrual method. Is it possible that a company can have profits but still does not have enough cash to pay its obligations
(i.e. suppliers, lenders)? What will happen if the company cannot pay its obligations?
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• Ask the learners what they think of a company who has very large amount of cash. (Possible answer:
They may say that this is good because the company will always have enough cash to pay its
obligations.) Tell them that though having a lot of cash has its advantages, it also signals unhealthy
company practices. It may tell them that management has not been putting the company’s resources
into good use. Also, keeping too much cash in the books is like hiding your extra allowance under
their bed. They will be missing out on investment opportunities.
• Reveal that the overall objective of a shareholder should be wealth maximization. What defines a
shareholder’s wealth? Reveal the answer using the example below.
INSTRUCTION (45 MINS)
1. Measurement of the shareholder’s wealth
• Post the question of how do we measure shareholders wealth? Simplify the example.
- Assume a learner bought 10 shares of Globe Telecom at PHP2,510 each on September 9, 2010.
This brings his investments to PHP25,100. What happens to the value of his investment if the price
goes up to PHP2,600 per share or it goes down to PHP2,300 per share?
• Conclude that shareholders’ wealth is measured based on the current market price of the
corporation’s stocks. The market price changes across different periods. Hence, the value of your
investment changes in different points on time based on the market value at that time.
• At this point, start discussing the factors which can affect prices.
2. Factors that Influence Market Price
• Group the factors into two: Factors that the Management can control and external factors that
cannot be controlled by management.
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Teacher Tips:
An increase of the share price to PHP2,600
per share means that people are willing to
buy the shares for that amount. If the
learners were to sell their shares at this
point, it will result to a profit of PHP90 per
share or PHP900 on their whole investment.
Hence, the value of their investment
increased from PHP25,100 to PHP26,000.
Therefore, there is an increase in
shareholder’s wealth.
On the other hand, a decrease in the share
price to PHP2,300 per share means that
people are only willing to buy shares for
PHP2,300. If the learners were to sell their
investment at this point, they will receive
PHP23,000 which would result to a loss of
PHP2,100. The decrease in value of their
investment leads to a decrease in
shareholder’s wealth.

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• Discuss how each factor influences market price
- Profitability
• Profit is a measure of the financial performance of a company for a period of time.
• Although it is a major driver for increasing the value of stock, an investor should not rely on profits alone. As discussed earlier, it is possible
that the company has profits but its cash flow is negative.
- Examples: Suppose the following Income Statements and Cash Flow Statements of companies A, B and C were presented to you. Which
do you think is a more attractive company?
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Controllable by Management Uncontrollable External Factors
• profitability
• having a good liquidity and reasonable
leverage position
• dividends
• competent management which affects the
company’s operating efficiency
• coming up with corporate plans that improve
the business prospects of the company
• macroeconomic conditions
• political stability
• prospects of the industry where the
company operates
• general market sentiment
• flow of foreign funds invested in the
Philippine stock market
COMPANY A
Income Statement Cash Flows
Sales P 100,000 Collection from Customers P 0
Less: Costs 50,000 Payment of Expenses 50,000
Profits P 50,000 Net Cash Flow (P 50,000)
COMPANY B
Sales P 100,000 Collection from Customers P 100,000
Profits (P 50,000) Net Cash Flow P 50,000
COMPANY C
Sales P 100,000 Collection from Customers P 100,000
Profits P 30,000 Net Cash Flow P 30,000

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• Company A is profitable but generated negative cash flows which resulted from the uncollected accounts receivable of PHP100,000.
Without adequate cash inflows to meet its obligations, the company will face liquidity problems, regardless of its level of profits.
• Company B on the other hand has a positive cash flow but is unprofitable. This is a result of the company’s delay in payment of its costs.
Accordingly, the Company will soon have to pay the remaining PHP100,000 liability and its cash will no longer be sufficient. Again, without
adequate cash inflows to meet its obligations, the company will face liquidity problems.
• Company C is profitable and has a positive cash flow. Based on the information provided, Company C seems to be the best.
- Good liquidity and reasonable leverage position.
• Liquidity and leverage refers to the company’s management of the type and amount of assets and liabilities that it will hold in the course
of its operations. This will further be discussed in Lesson 2.
- Dividends.
• Holders of shares receive dividends from a corporation as returns on their investments in form of cash or other properties. Companies
which have better dividend policies are generally more attractive than companies who do not pay out dividends.
• Note that there may be times that companies do not pay out dividends because of future expansions. Same with the other factors
affecting share price, dividend policies should go hand in hand with other factors in determining market price.
- Competent management.
• Competent managers may have any of the following attributes: 1) visionary 2) decisive 3) people-oriented, 4) inspiring, 5) innovative, 6)
respected and 7) experienced/seasoned manager.
- Corporate plans that improve the business prospects.
• Example: Company A which is in the business of selling Halo-halo in the Dapitan area (or any other area) for 5 years. Company A is
consistently earning profits and has a positive cash flow. When asked how Company A sees itself after 5 more years, Company A answered
that it would continue to sell Halo-halo in Dapitan (or any other area).
• On the other hand, Company B sells Buko Juice in Katipunan area (or any other area different from Company A’s area) for 5 years.
Company B is consistently earning profits and has a positive cash flow. When asked how Company B sees itself after 5 more years,
Company B answered that it has generated enough cash to expand its business to Cubao area (or any other area) to take advantage of
the growing demand of Buko Juice in Cubao.
• Between Company A and Company B, which would be a better investment? Company B. Since it has more concrete future prospects
allowing investors to hope for better revenues and net income.
• External Factors
- These factors influences the general reaction of investors in making an investment decision.
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- Its effect is not only to a specific company but on all companies or a group of companies under
similar circumstances.
- Such factors are a result of the environment a company operates in rather than the decisions of the
company’s management.
3. Role of Financial Management
• Ask the learners, given the factors that influence market price, how will the company ensure that
such objectives will be achieved? Reveal the answer that this is achieved through financial
management.
• Financial management deals with decisions that are supposed to maximize the value of
shareholders’ wealth. (Cayanan)
- These decisions will ultimately affect the markets perception of the company and influence the
share price.
- The goal of financial management is to maximize the value of shares of stocks.
- Managers of a corporation are responsible for making the decisions for the company that
would lead towards shareholders’ wealth maximization.
• Tell the learners that for the next parts of this course, they will fill in the shoes of a Chief Financial
Officer (CFO) and every problem that they will encounter for this course should be dealt with having
shareholders wealth maximization in mind.
ENRICHMENT (5 MINS)
1. Integration of Learning
• Ask the learners the following:
- Aside from the factors mentioned during class, what other factors can influence the investor’s
perception on the company’s performance which would ultimately affect share price?
- Why is the study of finance important to you?
2. Homework
• Go to a business in your locality. Ask who is in charge of the finances of the business. Interview the
“Chief Financial Officer (“CFO”) or the Vice-President for Finance” and ask them to report about their
roles and functions within the organization.
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Teacher Tips:
Possible answers: Ethics, Corporate Social
Responsibilities, Employee Relationships.

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Business'Finance
Content Standards
• Describe who are responsible for financial management within an
organization.
• Describe the primary activities of the financial manager.
• Describe how the financial manager helps in achieving the goal of the
organization.
Learning Competencies
The learners shall be able to:
• Explain the major role of financial management and the different individuals
involved. (ABM_BF12-IIIa-1)
• Explain the flow of funds within an organization – through and from the
enterprise—and the role of the financial manager. (ABM_BF12-IIIa-5)
At the end of this lesson, the learners will be able to:
• Understand the key positions in a corporate organization and identify the roles of each.
• Identify the primary activities of the financial manager.
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60 MINS
LESSON OUTLINE
Introduction Identifying the roles in a Corporate
Organization
25
Motivation Message from the CFOs 5
Instruction Identifying the functions of a Financial
Manager
25
Resources

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INTRODUCTION (25 MINS)
1. Discussion of Homework
• Begin by asking at least five learners to share in class the result of their interview with a Chief
Financial Officer (CFO) or Vice-President for Finance.
• Write on the board the roles and functions that the students identified from their interview.
• Take note of functions that are not roles of a Financial Manager but are roles of other managerial
positions.
• Discuss that these functions are done by people in the company who are holding other managerial
positions. A Financial Manager is part of a management team whose ultimate goal is to maximize
shareholders wealth.
2. The Corporate organization Structure
• Illustrate the corporate organization structure and inform them that this particular set of people
each play a role in the decision making of the company.
Figure 1: Illustration of the Corporate Organization Structure
• From the diagram presented, emphasize that each line is working for the interest of the person on
the line above them. Since the managers of the company are making decisions for the interest of
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Teacher Tips:
The various types of functions are expected
if the person they interviewed is a small
business owner who makes decisions on
various aspects of the business.
SHAREHOLDERS
BOARD OF DIRECTORS
PRESIDENT (CEO)
VP FOR
MARKETING
VP FOR
FINANCE
VP FOR
PRODUCTION
VP FOR
ADMINISTRATION
elects
appoints
OWNERS
MANAGERS

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the board of directors and the board of directors does the same for the interest of the shareholders, it follows that the goal of each
individual in a corporate organization should have an objective of shareholders’ wealth maximization.
• Discuss briefly the roles of each position identified.
• Shareholders: The shareholders elect the Board of Directors (BOD). Each share held is equal to one voting right. Since the BOD is elected
by the shareholders, their responsibility is to carry out the objectives of the shareholders otherwise, they would not have been elected in
that position. Ask the learners again what the objective of the shareholders is just to refresh.
• Board of Directors: The board of directors is the highest policy making body in a corporation. The board’s primary responsibility is to
ensure that the corporation is operating to serve the best interest of the stockholders. The following are among the responsibilities of the
board of directors:
- Setting policies on investments, capital structure and dividend policies.
- Approving company’s strategies, goals and budgets.
- Appointing and removing members of the top management including the president.
- Determining top management’s compensation.
- Approving the information and other disclosures reported in the financial statements (Cayanan, 2015)
• President (Chief Executive Officer): The roles of a president in a corporation may vary from one company to another. Among the
responsibilities of a president are the following:
- Overseeing the operations of a company and ensuring that the strategies as approved by the board are implemented as planned.
- Performing all areas of management: planning, organizing, staffing, directing and controlling.
- Representing the company in professional, social, and civic activities.
• Tell the learners that although the president carries out the decision making for all functions, it would be difficult for him/her to do this
alone. The president cannot manage the company on his own, especially when the corporation has become too big. To assist him are the
vice presidents of different functional areas: finance, marketing, production and administration.
• Determine from the list of roles written on the board the functions that pertain to the respective VPs. Add the following functions if needed:
• VP for Marketing: The following are among the responsibilities of VP for Marketing
- Formulating marketing strategies and plans.
- Directing and coordinating company sales.
- Performing market and competitor analysis.
- Analyzing and evaluating the effectiveness and cost of marketing methods applied.
- Conducting or directing research that will allow the company identify new marketing opportunities, e.g. variants of the existing
products/services already offered in the market.
- Promoting good relationships with customers and distributors. (Cayanan, 2015)
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• VP for Production: The following are among the responsibilities of VP for Production:
- Ensuring production meets customer demands.
- Identifying production technology/process that minimizes production cost and make the company cost competitive.
- Coming up with a production plan that maximizes the utilization of the company’s production facilities.
- Identifying adequate and cheap raw material suppliers. (Cayanan, 2015)
• VP for Administration: The following are among the responsibilities of VP for Administration:
- Coordinating the functions of administration, finance, and marketing departments.
- Assisting other departments in hiring employees.
- Providing assistance in payroll preparation, payment of vendors, and collection of receivables.
- Determining the location and the maximum amount of office space needed by the company.Identifying means, processes, or systems
that will minimize the operating costs of the company. (Cayanan, 2015)
• Finally, focus the learners’ attention to the role of the VP for finance as this is where the rest of the topics for this course will revolve.
MOTIVATION (5 MINS)
Message from the CFOs
• Share the following quotes from the Chief Financial Officers (CFOs) of the respective corporations:
- Unilever: “Finance plays a critical role across every aspect of our business. We enable the business to turn our ambition and strategy into
sustainable, consistent and superior performance” - Jean-Marc Huët (Unilever)
- Jollibee: “It’s very exciting because you are not just thinking of today but what the company will need in the future” - Ysmael V. Baysa
(Morales, 2013)
- Globe Telecom: “Yesterday’s solutions are never adequate for the future” - Albert De Larrazabal (Klobucher, 2015)
- SM Corporation: “Now, we don’t go out because we need funds. We go out because it’s an opportunity.” – Jose T. Sio (Montealegre, 2015)
• Reflect on the quotes cited and mention how critical and dynamic working in the finance field is.
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1. Functions of a Financial Manager
• Identify the four functions of a VP for finance (CFO) as follows:
- Financing
- Investing
- Operating
- Dividend Policies
• Recall from the previous session that there are situations when we are faced with lack of funds.
Financing decisions include making decisions on how to fund long term investments (such as
company expansions) and working capital which deals with the day to day operations of the
company (i.e., purchase of inventory, payment of operating expenses, etc.).
• The role of the VP for Finance of the Financial Manager is to determine the appropriate capital
structure of the company. Capital structure refers to how much of your total assets is financed by
debt and how much is financed by equity. To illustrate, show/draw the figure below:
Table 1: Sample Capital Structure
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Teacher Tips:
Write the four functions on the board and
identify what is the role of the Financial
Manager in each function.
Teacher Tips:
Financing – to determine the appropriate
capital structure of the company and to
raise funds from debt and equity.
0%
25%
50%
75%
100%
Total Assets Capital Structure
Equity Liabilities Assets

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• Recall that Assets = Liabilities + Owner’s Equity.
- To be able to acquire assets, our funds must have come somewhere. If it was bought using cash
from our pockets, it is financed by equity.
- On the other hand, if we used money from our borrowings, the asset bought is financed by
debt.
- In the figure above, the total assets is financed by 60% debt and 40% equity. Accordingly, the
capital structure is 60% debt and 40% equity.
• Ask the learners if they think there is an ideal mix of debt and equity across corporations?
- Answer: No. The mix of debt and equity varies in different corporations depending on
management’s strategies. It is the responsibility of the Financial Manager to determine which
type of financing (debt or equity) is best for the company.
• The advantages of debt and equity financing will be discussed in Lesson 5: Sources and Uses of
Funds.
• Recall that, previously, you discussed investing as where to put your excess cash to make it more
profitable. We expand that definition by including cash held taken from funds as a result of
financing decisions.
• Investments may either be short term or long term.
- Short term investment decisions are needed when the company is in an excess cash position.
• To plan for this, the Financial Manager should be able to make use of Financial Planning tools
such as budgeting and forecasting which will be discussed in Lesson 3: Financial Planning
Tools and Concepts.
• Moreover, the company should choose which type of investment it should invest in that would
provide an most optimal risk and return trade off. We will learn more about this on Lesson 6:
Introduction to investments.
- Long term investments should be supported by a capital budgeting analysis which is among
the responsibilities of a finance manager.
• Capital budgeting analysis is a tool to assess whether the investment will be profitable in the
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Teacher Tips:
A. Investing
• Short term investments:
1. Plan for expected excess in cash using
Financial Planning tools such as
budgeting and forecasting
2. Choose which type of investment should
it invest in that would secure the best
profits
• Long term investments:
Prepare a capital budgeting analysis to
determine if the long term investment will
be profitable
B. Operating - determine how to finance
working capital accounts such as
accounts receivable and inventories
(short term vs. long term)

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long run and will be further discussed in Lesson 5: Basic Long Term Financial Concepts. This is
a crucial function of management especially if this investment would be financed by debt.
• The lenders should have the confidence that the investments that management will push
through with will be profitable or else they would not lend the company any money.
• Operating decisions deal with the daily operations of the company. The role of the VP for finance
is determining how to finance working capital accounts such as accounts receivable and inventories.
The company has a choice on whether to finance working capital needs by long term or short term
sources. Why does a Financial Manager need to choose which source of financing a company
should use? What do they need to consider in making this decision?
- Short Term sources are those that will be payable in at most 12 months. This includes short-term
loans with banks and suppliers’ credit. For short-term bank loans, the interest rate is generally
lower as compared to that of long-term loans. Hence, this would lead to a lower financing cost.
- Suppliers’ credit are the amounts owed to suppliers for the inventories they delivered or
services they provided. While suppliers’ credit is generally free of interest charges, the
obligations with them have to be paid on time to maintain good supplier relationship. Such
relationships should be nurtured to ensure timely delivery of inventories.
- Short term sources pose a trade-off between profitability and liquidity risk. Because this source
matures in a short period, there is a possibility that the company may not be able to obtain
enough cash to pay their obligation (i.e. liquidity risk).
- Long term sources, on the other hand, mature in longer periods. Since this will be paid much
later, the lenders expect more risk and place a higher interest rate which makes the cost of long
term sources higher than short term sources. However, since long term sources have a longer
time to mature, it gives the company more time to accumulate cash to pay off the obligation in
the future.
- Hence, the choice between short and long term sources depends on the risk and return trade
off that management is willing to take. The learners will learn more about this on Chapter 4:
Sources and uses of funds.
• Dividend Policies. Recall that cash dividends are paid by corporations to existing shareholders
based on their shareholdings in the company as a return on their investment. Some investors buy
stocks because of the dividends they expect to receive from the company. Non-declaration of
dividends may disappoint these investors. Hence, it is the role of a financial manager to determine
when the company should declare cash dividends.
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Teacher Tips:
There are two types of liquidity risk:
A. Risk that the company will fail to pay its
short term obligations.
B. Risk that you will not be able to sell
investments in financial assets
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- Before a company may be able to declare cash dividends, two conditions must exist:
1. The company must have enough retained earnings (accumulated profits) to support cash
dividend declaration.
2. The company must have cash.
• Ask the learners what they think will affect the decision of management in paying dividends.
Remind them that dividends come from the company’s cash and availability of unrestricted retained
earnings.
- Answer Key:
• Availability of financially viable long-term investment
• Access to long term sources of funds
• Management’s Target Capital structure
• Recall that one of the functions of a finance manager is investing and its available cash may be used
to invest in long term investments that would increase the profitability of the company. Some small
enterprises which are undergoing expansion may have limited access to long term financing (both
long term debt and equity). This results to these small companies reinvesting their earnings into
their business rather than paying them out as dividends.
• On the other hand, a company which has access to long term sources of funds may be able to
declare dividends even if they are faced with investment opportunities. However these investment
opportunities are generally financed by both debt and equity.
- The management usually appropriates a portion of retained earnings for investment
undertakings and this may limit the amount of retained earnings available for dividend
declaration.
- Creditors are not willing to finance entirely the cost of a company’s long term investment.
Hence, the need for equity financing (e.g. internally generated funds or issuance of new shares).
- Examples of these companies are publicly listed companies such as PLDT, Globe Telecom, and
Petron. PLDT and Globe are two of the Philippine listed companies which have generously
distributed cash dividends for the last five years (information as of 2014).
• For companies which have limited access to capital and have target capital structure, they may end
up with a residual dividend policy. This means that when companies are faced with investment
opportunities, internally generated funds will be used first to finance these investments and
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Dividend Policies - These determine when
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dividends can only be declared if there are excess funds.
ENRICHMENT (5 MINS)
Integration of Learning
• Ask the learners the following:
- Explain why shareholder wealth maximization should be the overriding objective of management.
- What other positions can you think of that are related to financial management?
Answer: Treasurer, Controller. These are positions under the CFO)
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Business'Finance
Content Standards
The learners will be able to describe the role of financial institutions and
markets.
The learners shall be able to:
• Distinguish a financial institution from financial instrument and financial
market. (ABM_BF12-IIIa-2)
• Enumerate the varied financial institutions and their corresponding services.
(ABM_BF12-IIIa-3)
• Compare and contrast the varied financial instruments. (ABM_BF12-IIIa-4)
• Explain the flow of funds within an organization – through and from the
enterprise—and the role of the financial manager. (ABM_BF12-IIIa-5)
• Prepare a diagram illustrating how the Financial System works.
• Define Financial Markets, Financial Institutions and Financial Instruments.
• Identify the types of Financial Markets, Financial Institutions and Financial Instruments.
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90 MINS
LESSON OUTLINE
Introduction Introduce the concept of a Financial System 30
Instruction Identify the types of Financial Markets,
Financial Institutions, and Financial
Instruments
45
Evaluation Short Quiz on Financial Institutions, Markets,
and Instruments
10
Resources

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INTRODUCTION/MOTIVATION (30 MINS)
1. Savings and Shortages
• Recall from the previous discussions that one of the functions of a financial manager is financing and
investing of funds.
• Pick a random learner (A) and present a scenario that during his/her management of money, some
cash will remain. Ask him/her what he/she should do with that cash.
- Expected answer: Save or Invest
• Ask your students if they are going to save their money, where would they keep it.
- Expected answers: Banks, Piggy bank, Investments – stocks, mutual funds, insurance
• Pick another learner (B) and ask B what business he/she would like to try. Now, suppose that he/she
had the business running and is profitable for some time. B then decides to expand his/her business
but does not have enough cash to pay for the expansion. Ask the students where can B get the
additional funding?
- Expected answers: Ask from parents, ask from friends, banks, lending institutions.
• Suppose B knew that A had excess money and approached A to lend him/her the capital he/she
needs to expand his/her business for a 20% interest. Since A observed that B’s business has been
profitable, A is willing to lend B the money since he/she is confident that B can repay his loan. A is
now expecting to be 20% richer from his lending to B and B can now expand his operations to gain
more profit from his business.
• Emphasize that this scenario where the lender and the borrower are present at the right time and at
the right place may not happen all the time. In fact, it seldom happens. What happens if they did
not meet? A will not be able to find someone to invest his money to and B cannot get funds to start
his expansion. Here is where the Financial System comes in.
2. Role playing to introduce the concept of saving and investing
• Draw two boxes and label with names of learners A and B. Below [A], write “Saver”, and below [B],
write “users of funds”.
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Terms Defined:
Financial Markets – organized forums in
which the suppliers and users of various
types of funds can make transactions
directly

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• Continue discussion as follows:
- If A knows that B is in need of funds, or if B knows that A is willing to invest funds, A and B may
agree to make a Private Placement. (Draw the box for Private Placement between A and B and
link the boxes as shown in Figure 1.)
- However, if these facts are unknown to them, A and B can go to a Financial Market which is an
organized forum that lets A, along with other suppliers of funds, and B, along with other users of
funds, meet and make transactions. Once A and B have met in the Financial Market, they can now
agree to make a private placement. (Draw the box for Financial Markets and link this to A and B as
shown in Figure 1.)
- If A and B do not want to make an effort to find a counterparty in the Financial Markets, A and B
may go to a Financial Institution. A Financial Institution will receive A’s supply of funds and match
it with B’s demand of funds. Unlike the Financial Markets were A and B knows to whom the fund
went and from whom the funds came, Financial Institutions serve as an intermediary to the
suppliers and users of funds. (Draw the box for Financial Institutions and link this to A and B as
shown in Figure 1.)
- Moreover, Financial institutions actively participate in the financial markets as both suppliers and
users of funds. (Draw the link between Financial Institutions and Financial Markets as shown in
Figure 1.)
• Mention that the resulting diagram illustrates the Financial System.
21
Terms Defined:
Financial Institutions – intermediaries that
channel the savings of individuals,
businesses, and governments into loans or
investments.
Private Placements - the sale of a new
security directly to an investor or group of
investors.
Public Offering - The sale of either bonds or
stocks to the general public.
Financial Instruments – is a real or a virtual
document representing a legal agreement
involving some sort-of monetary value
(Source: Investopedia - Sharper Insight.
Smarter Investing. | Investopedia. (2016).
Investopedia. Retrieved 8 May 2016, from
http://investopedia.com). These can be
debt securities like corporate bonds or
equity like shares of stock.

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Financial System
Figure 1: The Financial System
• Post the question of how transactions between suppliers and users of funds take place. How would they prove that there was a transaction
so that the demander will be able to repay the supplier on time and at the right amount?
- Answers:
- Verbal agreement
- Written agreement
• Discuss that due to the increased need for security for the performance of obligations arising from these transactions and due to the
growing size of the financial system, the transfers of funds from one party to another are made through Financial Instruments.
• Note that on the diagram presented, the solid lines represent the flow of cash/funds, while the broken lines represent the flow of financial
instruments which represent obligations to transfer cash or other assets in the future.
22
Financial
Institutions
[Learner A]
Savers/Suppliers
of Funds
[Learner B]
Users/Demanders
of Funds
Private Placement
Financial Markets
Flow of funds Flow of securities/notes/bonds/debt instruments

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Tell the learners that you will further discuss the composition of the Financial System and that you will identify the types of Financial Markets,
Financial Institutions and Financial Instruments.
1. Financial Instruments
• When a financial instrument is issued, it gives rise to a financial asset on one hand and a financial liability or equity instrument on the other.
• Recall from ABM the following definitions:
- A Financial Asset is any asset that is:
• Cash
• An equity instrument of another entity
• A contractual right to receive cash or another financial asset from another entity.
• A contractual right to exchange instruments with another entity under conditions that are potentially favorable. (IAS 32.11)
• Examples: Notes Receivable, Loans Receivable, Investment in Stocks, Investment in Bonds
- A Financial Liability is any liability that is a contractual obligation:
• To deliver cash or other financial instrument to another entity.
• To exchange financial instruments with another entity under conditions that are potentially unfavorable. (IAS 32)
• Examples: Notes Payable, Loans Payable, Bonds Payable
- An Equity Instrument is any contract that evidences a residual interest in the assets of an entity after deducting all liabilities. (IAS 32)
• Examples: Ordinary Share Capital, Preference Share Capital
• Ask the learners who are the holders of Financial Assets.
- Answer: Suppliers of Funds
• Ask who the makers of Financial Liabilities and Equity instruments are.
- Answer: Users of Funds
• Continue discussing that when companies are in need of funding, they either sell debt securities (or bonds) or issue equity instruments. The
proceeds from the sale of the debt securities and issuance of bonds will be used to finance the company’s plans. On the other hand, investors
buy debt securities of equity instruments in hopes of receiving returns through interest, dividend income or appreciation in the financial
asset’s price.
23

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• Identify common examples of Debt and Equity Instruments.
- Debt Instruments generally have fixed returns due to fixed interest rates. Examples of debt
instruments are as follows:
• Treasury Bonds and Treasury Bills are issued by the Philippine government. These bonds and bills
have usually low interest rates and have very low risk of default since the government assures that
these will be paid.
• Corporate Bonds are issued by publicly listed companies. These bonds usually have higher interest
rates than Treasury bonds. However, these bonds are not risk free. If the company which issued the
bonds goes bankrupt, the holder of the bonds will no longer receive any return from their
investment and even their principal investment can be wiped out.
- Equity Instruments generally have varied returns based on the performance of the issuing company.
Returns from equity instruments come from either dividends or stock price appreciation. The
following are types of equity instruments:
• Preferred Stock has priority over a common stock in terms of claims over the assets of a company.
This means that if a company were to be liquidated and its assets have to be distributed, no asset
will be distributed to common stockholders unless all the claims of the preferred stockholders have
been given. Moreover, preferred stockholders have also priority over common stockholders in cash
dividend declaration. Dividends to preferred stockholders are usually in a fixed rate. No cash
dividends will be given to common stockholders unless all the dividends due to preferred
stockholders are paid first. (Cayanan, 2015)
• Holders of Common Stock on the other hand are the real owners of the company. If the company’s
growth is spurring, the common stockholders will benefit on the growth. Moreover, during a
profitable period for which a company may decide to declare higher dividends, preferred stock will
receive a fixed dividend rate while common stockholders receive all the excess.
• Ask the learners which of the financial instruments presented they find most appealing.
• Inform them that they will learn more about the advantages and disadvantages of debt and equity
instruments in Lesson 4: Sources and Uses of Funds and Lesson 5: Introduction to Investments.
2. Financial Markets
• Recall the definition of financial markets from earlier discussion.
24
Terms Defined
Primary Market - Financial market in which
securities are initially issued; the only
market in which the issuer is directly
involved in the transaction.

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• Classify Financial Markets into comparative groups:
- Primary vs. Secondary Markets
• To raise money, users of funds will go to a primary market to issue new securities (either debt or
equity) through a public offering or a private placement.
• The sale of new securities to the general public is referred to as a public offering and the first
offering of stock is called an initial public offering. The sale of new securities to one investor or a
group of investors (institutional investors) is referred to as a private placement.
• However, suppliers of funds or the holders of the securities may decide to sell the securities that
have previously been purchased. The sale of previously owned securities takes place in secondary
markets.
• The Philippine Stock Exchange (PSE) is both a primary and secondary market.
- Money Markets vs. Capital Markets
• Money markets are a venue wherein securities with short-term maturities (1 year or less) are sold.
They are created because some individuals, businesses, governments, and financial institutions
have temporarily idle funds that they wish to invest in a relatively safe, interest-bearing asset. At the
same time, other individuals, businesses, governments, and financial institutions find themselves in
need of seasonal or temporary financing.
• On the other hand, securities with longer-term maturities are sold in Capital markets. The key
capital market securities are bonds (long-term debt) and both common stock and preferred stock
(equity, or ownership).
3. Financial Institutions
• Recall the definition of Financial institutions from the earlier discussion.
• Identify examples of financial institutions:
- Commercial Banks - Individuals deposit funds at commercial banks, which use the deposited
funds to provide commercial loans to firms and personal loans to individuals, and purchase debt
securities issued by firms or government agencies.
- Insurance Companies - Individuals purchase insurance (life, property and casualty, and health)
protection with insurance premiums. The insurance companies pool these payments and invest the
proceeds in various securities until the funds are needed to pay off claims by policyholders.
Because they often own large blocks of a firm’s stocks or bonds, they frequently attempt to
25
Terms Defined
Public offering - The sale of either bonds or
stocks to the general public.
Private placement - The sale of a new
security directly to an investor or group of
investors.
Secondary market - Financial market in
which preowned securities (those that are
not new issues) are traded.
Money market - A financial relationship
created between suppliers and users of
short-term funds.
Capital market - A market that enables
suppliers and users of long-term funds to
make transactions.

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influence the management of the firm to improve the firm’s performance, and ultimately, the performance of the securities they own.
- Mutual Funds - Mutual funds are owned by investment companies which enable small investors to enjoy the benefits of investing in a
diversified portfolio of securities purchased on their behalf by professional investment managers. When mutual funds use money from
investors to invest in newly issued debt or equity securities, they finance new investment by firms. Conversely, when they invest in debt or
equity securities already held by investors, they are transferring ownership of the securities among investors.
- Pension Funds - Financial institutions that receive payments from employees and invest the proceeds on their behalf.
- Other financial institutions include pension funds like Government Service Insurance System (GSIS) and Social Security System (SSS), unit
investment trust fund (UITF), investment banks, and credit unions, among others.
Figure 2: How Financial Institutions Provide Financing for Firms (Gitman & Zutter, 2012)
• The figure above illustrates how the key financial institutions serve as intermediaries for suppliers and users of funds.
• Ask the learners which type of financial institution do they think is most critical for firms?
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ENRICHMENT (5 MINS)
Integration of Learning
• Question for reflection: How would you relate the role of financial managers, role of financial markets
and role of investors?
EVALUATION (10 MINS)
Quiz:
Part 1: True/False
1. To achieve the goal of profit maximization for each alternative being considered, the financial
manager would select the one that is expected to result in the highest monetary return.
2. Dividend payments change directly with changes in earnings per share.
3. The wealth of corporate owners is measured by the share price of the stock.
4. Financial markets are intermediaries that channel the savings of individuals, businesses, and
government into loans or investments.
5. The money market involves trading of securities with maturities of one year or less while the capital
market involves the buying and selling of securities with maturities of more than one year.
27
Role of Financial Managers Role of Financial Markets Role of Investors
Financial managers make financing
decisions that require funding from
investors in the financial markets.
The financial markets provide a
forum in which firms can issue
securities to obtain the funds that
they need and in which investors can
purchase securities to invest their
funds.
Investors provide the funds that are
to be used by financial managers to
finance corporate growth.
Teacher Tips
You may use suggested format or take
questions from the test banks found at the
end of this file.
Answer Key:
Part 1: T, F, T, F, T
Part 2: B, D, A, C, B

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Part 2: Multiple Choice
1. The ______ is created by a financial relationship between suppliers and users of short-term funds.
A. financial market
B. money market
C. stock market
D. capital market
2. Firms that require funds from external sources can obtain them from _____.
A. financial markets.
B. private placement.
C. financial institutions.
D. All of the above.
3. The major securities traded in the capital markets are ____.
A. stocks and bonds.
B. bonds and commercial paper.
C. commercial paper and Treasury bills.
D. Treasury bills and certificates of deposit.
4. The primary goal of the financial manager is _____.
A. minimizing risk.
B. maximizing profit.
C. maximizing wealth.
D. minimizing return.
5. A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs $35,000 and is expected to provide
earnings over a three-year period as described below.
28
Asset Year 1 Year 2 Year 3
1 $ 21,000 $ 15,000 $ 6,000
2 $ 9,000 $ 15,000 $ 21,000
3 $ 3,000 $ 20,000 $ 19,000
4 $ 6,000 $ 12,000 $ 12,000

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Based on the profit maximization goal, the financial manager would choose _____.
A. Asset 1.
B. Asset 2.
C. Asset 3.
D. Asset 4.
Appendix
Test Bank - Goal of the Firm (Gitman & Zutter, 2012)
True/False
1. High cash flow is generally associated with a higher share price whereas higher risk tends to result
in a lower share price.
2. When considering each financial decision alternative or possible action in terms of its impact on the
share price of the firm's stock, financial managers should accept only those actions that are
expected to increase the firm's profitability.
3. To achieve the goal of profit maximization for each alternative being considered, the financial
manager would select the one that is expected to result in the highest monetary return.
4. Dividend payments change directly with changes in earnings per share.
5. The wealth of corporate owners is measured by the share price of the stock.
6. Risk and the magnitude and timing of cash flows are the key determinants of share price, which
represents the wealth of the owners in the firm.
7. _When considering each financial decision alternative or possible action in terms of its impact on
the share price of the firm's stock, financial managers should accept only those actions that are
expected to maximize shareholder value.
8. An increase in firm risk tends to result in a higher share price since the stockholder must be
compensated for the greater risk.
9. Stockholders expect to earn higher rates of return on investments of lower risk and lower rates of
return on investments of higher risk.
29
Answer Key
True/False
1. T
2. F
3. T
4. F
5. T
6. T
7. T
8. F
9. F
Multiple Choice
1. C
2. B
3. C
4. D
5. C
6. A
7. C
8. B
9. B
10. B
11. A
12. D
13. B
14. A

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Multiple Choice
1. The primary goal of the financial manager is
A. minimizing risk.
B. maximizing profit.
C. maximizing wealth.
D. minimizing return.
2. Corporate owner's receive realizable return through
A. earnings per share and cash dividends.
B. increase in share price and cash dividends.
C. increase in share price and earnings per share.
D. profit and earnings per share.
3. The wealth of the owners of a corporation is represented by
A. profits.
B. earnings per share.
C. share value.
D. cash flow.
4. Wealth maximization as the goal of the firm implies enhancing the wealth of
A. the Board of Directors.
B. the firm's employees.
C. the federal government.
D. the firm's stockholders.
5. The goal of profit maximization would result in priority for
A. cash flows available to stockholders.
B. risk of the investment.
C. earnings per share.
D. timing of the returns.
6. Profit maximization as a goal is not ideal because it does NOT directly consider
A. risk and cash flow.
B. cash flow and stock price.
30

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C. risk and EPS.
D. EPS and stock price.
7. Profit maximization as the goal of the firm is not ideal because
A. profits are only accounting measures.
B. cash flows are more representative of financial strength.
C. profit maximization does not consider risk.
D. profits today are less desirable than profits earned in future years.
8. Profit maximization fails because it ignores all EXCEPT
A. the timing of returns.
B. earnings per share.
C. cash flows available to stockholders.
D. risk.
9. The key variables in the owner wealth maximization process are
A. earnings per share and risk.
B. cash flows and risk.
C. earnings per share and share price.
D. profits and risk.
10. Cash flow and risk are the key determinants in share price. Increased cash flow results in ________, other things remaining the same.
A. a lower share price
B. a higher share price
C. an unchanged share price
D. an undetermined share price
11. Cash flow and risk are the key determinants in share price. Increased risk, other things remaining the same, results in
A. a lower share price.
B. a higher share price.
C. an unchanged share price.
D. an undetermined share price.
31

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12. Financial managers evaluating decision alternatives or potential actions must consider
A. only risk.
B. only return.
C. both risk and return.
D. risk, return, and the impact on share price.
13. A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs $35,000 and is expected to provide
earnings over a three-year period as described below.
Based on the profit maximization goal, the financial manager would choose
A. Asset 1.
B. Asset 2.
C. Asset 3.
D. Asset 4.
14. A financial manager must choose between three alternative investments. Each asset is expected to provide earnings over a three-year
period as described below. Based on the wealth maximization goal, the financial manager would
32
1 $ 21,000 $ 15,000 $ 6,000
2 $ 9,000 $ 15,000 $ 21,000
3 $ 3,000 $ 20,000 $ 19,000
4 $ 6,000 $ 12,000 $ 12,000
1 $ 21,000 $ 9,000 $ 15,000
2 $ 15,000 $ 15,000 $ 15,000
3 $ 9,000 $ 21,000 $ 15,000
$ 45,000 $ 45,000 $ 45,000

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A. choose Asset 1.
B. choose Asset 2.
C. choose Asset 3.
D. be indifferent between Asset 1 and Asset 2.
Test Bank - Financial Markets, Financial Institutions, Financial Instruments (Gitman & Zutter, 2012)
True/False
1. Primary and secondary markets are markets for short-term and long-term securities, respectively.
2. Financial markets are intermediaries that channel the savings of individuals, businesses, and
government into loans or investments.
3. The money market involves trading of securities with maturities of one year or less while the capital
market involves the buying and selling of securities with maturities of more than one year.
4. Holders of equity have claims on both income and assets that are secondary to the claims of
creditors.
5. Preferred stock is a special form of stock having a fixed periodic dividend that must be paid prior to
payment of any interest to outstanding bonds.
6. Commercial banks obtain most of their funds from borrowing in the capital markets.
7. Credit unions are the largest type of financial intermediary handling individual savings.
8. A mutual fund is a type of financial intermediary that obtains funds through the sale of shares and
uses the proceeds to acquire bonds and stocks issued by various business and governmental units.
9. IPO stands for Interest and Principal Obligation.
Multiple Choice
1. A ______ is one financial intermediary handling individual savings. It receives premium payments
that are placed in loans or investments to accumulate funds to cover future benefits.
A. life insurance company
B. commercial bank
C. savings bank
D. credit union
33
Answer Key
True/False
1. F
2. F
3. T
4. T
5. F
6. F
7. F
8. T
9. F
Multiple Choice
1. A
2. A
3. B
4. B
5. A
6. C
7. A
8. D
9. D
10. B
11. D
12. A
13. A

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2. The key participants in financial transactions are individuals, businesses, and governments. Individuals are net ______ of funds, and
businesses are net ______ of funds.
A. suppliers; users
B. purchasers; sellers
C. users; suppliers
D. users; providers
3. Which of the following is not a financial institution?
A. A pension fund
B. A newspaper publisher
C. A commercial bank
D. An insurance company
4. A ______ is set up so that employees of corporations or governments can receive income after retirement.
A. life insurance company
B. pension fund
C. savings bank
D. credit union
5. A ______ is a type of financial intermediary that pools savings of individuals and makes them available to business and government users.
Funds are obtained through the sale of shares.
A. mutual fund
B. savings and loans
C. savings bank
D. credit union
6. Most businesses raise money by selling their securities in a.
A. a direct placement.
B. a stock exchange.
C. a public offering.
D. a private placement.
34

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7. Which of the following is not a service provided by financial institutions?
A. Buying the businesses of customers
B. Investing customers’ savings in stocks and bonds
C. Paying savers’ interest on deposited funds
D. Lending money to customers
8. Government usually
A. borrows funds directly from financial institutions.
B. maintains permanent deposits with financial institutions.
C. is a net supplier of funds.
D. is a net demander of funds.
9. By definition, the money market involves the buying and selling of
A. funds that mature in more than one year.
B. flows of funds.
C. stocks and bonds.
D. short-term funds.
10. The ______ is created by a financial relationship between suppliers and users of short-term funds.
A. financial market
B. money market
C. stock market
D. capital market
11. Firms that require funds from external sources can obtain them from
A. financial markets.
B. private placement.
C. financial institutions.
D. All of the above.
35

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12. The major securities traded in the capital markets are
A. stocks and bonds.
B. bonds and commercial paper.
C. commercial paper and Treasury bills.
D. Treasury bills and certificates of deposit.
13. Long-term debt instruments used by both government and business are known as
A. bonds.
B. equities.
C. stocks.
D. bills.
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Business'Finance
Review of Financial Statement
Preparation, Analysis,
and Interpretation Pt.1
Content Standards
The learners demonstrate an understanding of the process of preparing
financial statements as well as the methods or tools of analysis of financial
statements, including horizontal analysis, vertical analysis, and financial ratios
to test the level of liquidity, solvency, profitability, and stability of the business.
The learners will be able to solve exercises and problems that require financial
statement preparation, analysis, and interpretation using horizontal and vertical
analyses, and various financial ratios.
The learners shall be able to prepare financial statements (ABM_BF12-III-6)
At the end of this lesson, the learners will be able to identify and explain the
basic steps in the accounting process (accounting cycle).
37
180 MINS
LESSON OUTLINE
Introduction Brief introduction on learning objectives 10
Motivation Matching type exercise as an ice breaker 20
Instruction/
Delivery
Discussion 90
Practice Board work/exercises and presentation 30
Evaluation Quiz 30
Materials calculators, laptops
Resources
(2) Valencia and Roxas. Basic Accounting.
(3) Copies of sample financial statements

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INTRODUCTION/REVIEW (10 MINS)
Communicate learning objectives
• Introduce the following learning objectives using any of the suggested protocols (verbatim, own
words, read-aloud):
- I will be able to identify and explain the basic steps in the accounting process (accounting cycle).
MOTIVATION (20 MINS)
Match the letter with the definition that corresponds to the following terms:
(Modified from Basic Accounting, Valencia & Roxas)
38
Teacher Tips
Answer Key
1. i
2. h
3. d
4. a
5. o
6. q
7. p
8. g
9. b
10. j
11. c
12. f
13. k
14. n
15. l
1. Accounting
System
2. Debit
3. Credit
4. Transactions
5. Double-Entry
Accounting
6. Journal Entry
7. Journals
8. Accounting
Process (or cycle)
9. Special Journals
10. General Journal
11. Account
12. Ledger
13. Posting
14. General Ledger
15. Subsidiary
Ledgers
A. Exchanges of goods or services between/among two or more entities
or some other event having an economic impact on a business
enterprise.
B. An accounting record used to list a particular type of frequently
recurring transaction.
C. A record used to classify and summarize the effects of transactions.
D. An entry on the right side of an account.
E. A record used as the basis for analyzing and recording transactions.
Examples include invoices, check stubs, and receipts.
F. A collection of accounts maintained by a business.
G. Procedures used for analyzing, recording, classifying, and
summarizing the information to be presented in accounting reports.
H. An entry on the left side of an account.
I. Procedures and methods used, including data processing equipment,
to collect and report accounting data.
J. An accounting record used to record all business activities for which a
special journal is not maintained.
K. The process of summarizing transactions by transferring amounts
from the journals to the ledger accounts.
L. The grouping of supporting accounts that in total equal the balance
of a control account in the general ledger.
M. The general ledger account that summarizes the detailed information
in a subsidiary ledger.

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INSTRUCTION/DELIVERY (90 MINS)
Discuss the following:
Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. (Investopedia - Sharper Insight.
Smarter Investing. | Investopedia. (2016). Investopedia. Retrieved 8 May 2016, from http://investopedia.com)
1. The Accounting Equation
The basic accounting equation is:
ASSETS = LIABILITIES + OWNER’S EQUITY
• This means that the whole assets of the company comes from the liability, or debt of the company, and from the capital of the owner of the
business, and the income it generated from the business operations. This reflects the double-entry bookkeeping, and shown in the balance
sheet.
• Double entry bookkeeping tells us that if we add something from the one side, which is asset, we must add the same amount to the other
side to keep them in balance.
• For example, if we were to increase cash (an asset) we might have to increase note payable (a liability account) so that the basic accounting
equation remains in balance.
39
N. A collection of all the accounts used by a business that could appear
on the financial statements.
O. A system of recording transactions in a way that maintains the
equality of the accounting equation.
P. Records in which transactions are first entered, providing a
chronological record of business activity.
Q. The recording of a transaction in which debits equal credits. It usually
includes a date and an explanation of the transaction.
P 500.00 P 500.00

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• In double-entry bookkeeping, there is the concept of debit (dr) and credit (cr). Debit is the left, and credit is the right.
• There is also a concept of normal balances. A normal balance, either a debit normal balance or a credit normal balance, is the side where a
specific account increases.
• In the accounting equation, asset is on the left side, while liabilities and equity is on the right side. Therefore, asset has a debit normal
balance, meaning that cash as an asset is debited to increase, while credited to decrease.
• On the other hand, liabilities and owners’ equity have a credit normal balance. This means that a liability account is credited to increase, while
debited to decrease. The accounting equation provides the foundation for what eventually becomes the balance sheet.
2. T-Account Analysis
In double-entry bookkeeping, the terms debit and credit are used to identify which side of the ledger account an entry is to be made. Debits
are on the left side of the ledger and Credits are on the right side of the ledger. It does not matter what type of account is involved.
• The debit to cash increases the Cash Account by PHP500 while the credit to Accounts Payable increases this liability account by the same
PHP500.
• In the above example, we analyzed the accounting equation in terms of assets, liabilities, and owners’ equity. These are called Real or
Permanent Accounts. These accounts remain open and active for the life of the enterprise.
• In contrast, there are accounts that reflect activities for a specific accounting period. These are called Nominal or Temporary Accounts. After
the end of the specific period and the start of a new period, the balance of the nominal accounts are zero.
• Using the accounting equation, we can now expand the analysis that will include both real and nominal accounts. All nominal accounts will be
then closed to a Retained Earnings account at the end of the period, which is an owner’s equity account.
40
CASH
DEBIT (DR) CREDIT (CR)
Php 500.00
ACCOUNTS PAYABLE
DEBIT (DR) CREDIT (CR)
Php 500.00

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Illustrative Example:
Calvo Delivery Service is owned and operated by Noel Calvo. The following selected transactions were completed by Calvo Delivery Service
during February:
A. Received cash from owner as additional investment, P35,000.
B. Paid creditors on account, P1,800.
C. Billed customers for delivery services on account, P11,250.
D. Received cash from customers on account, P6,740.
3. Nominal Accounts
There are two major categories of nominal accounts: Expense and Revenue accounts.
• Expense Accounts
- A resource, when not yet used up for the current period, is considered an Asset and will provide benefits at a future time.
- On the other hand, a resource that has been used for the current period is called an Expense. At the end of each accounting period,
expenses are closed out to the Retained Earnings Account which decreases the Owners’ Equity. Since expenses decrease the owners’ equity,
those expense accounts carry a normal debit balance.
• Revenue Accounts
- Revenue Accounts reflect the accumulation of potential additions to retained earnings during the current accounting period.
- At the end of the accounting period accumulation of revenues during the period are closed to the Retained Earnings Account which
increases Owners’ Equity.
- Therefore revenue accounts carry a normal credit balance meaning the same balance as the Retained Earnings Account.
41
CASH ACCOUNTS
RECEIVABLE
ACCOUNTS
PAYABLE
CALVO,
CAPITAL
SERVICE
REVENUE
A PHP35,000 PHP35,000
B PHP1,800 PHP1,800
C PHP11,250 PHP11,250
D PHP6,740 PHP6,740

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Illustrative Example:
J. F. Outz, M.D., has been a practicing cardiologist for three years. During April 2009, Outz completed the following transactions in her practice
of cardiology:
Mar 1 Provide medical services to clients for cash P35,000.
Mar 2 Paid rent for the month, P3,000.
Paid advertising expense, P1,800.
Mar 6 Purchased office equipment on account, P12,300.
Mar 15 Paid creditor on account, P1,200.
Mar 27 Paid cash for repairs to office equipment, P500.
Mar 30 Paid telephone bill for the month, P180.
Mar 31 Paid electricity bill for the month, P315.
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MAR CASH ACCOUNTS
RECEIVABLE
OFFICE
EQUIPMENT
ACCOUNTS
PAYABLE
SERVICE
REVENUE
EXPENSES
1 PHP35,000 PHP35,000
2 PHP3,000 PHP3,000
2 PHP1,800 PHP1,800
6 PHP12,300 PHP12,300
15 PHP1,200 PHP1,200
27 PHP500 PHP500
30 PHP180 PHP180
31 PHP315 PHP315

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