Senior High School
Entrepreneurship
Quarter 2 – Module 3:
Preparing, Analyzing, and
Forecasting Financial Statements
Writer:
ARIEL G. GUTIERREZ
T-II Diosdado Mcapagal Memorial HS Floridablanca
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
`
What I Need to Know
This module was designed and written with you in mind. It is here to help you
to explore forecasting financial statement for Entrepreneurship as a career. The scope
of this module permits it to be used in many different learning situations. The
language used recognizes the diverse vocabulary level of students. The lessons are
arranged to follow the standard sequence of the course. But the order in which you
read them can be changed to correspond with the textbook you are now using.
After going through this module, you are expected to:
1. Forecast the revenues of the business.
What I Know
Hey there! Welcome to our lesson, how are you? I hope you’re doing good and
enjoyed the previous lesson we had. Just like the previous lesson, let’s have a pre-test
to check your prior knowledge about the topic. If you got a perfect score, you can skip
this lesson and proceed to the next module, but if you didn’t get a perfect score, you
don’t have to worry because this module will help and guide you to understand the
topic Are you ready? Let’s start.
I. Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.
1. It is a separate legal personality created by law.
a. Partnership
b. Company
c. Corporation
d. Store
2. It summarizes what is going to happen to the business if plans are carried out
well.
a. Financial Statements
b. Income Statement
c. Financial Forecast
d. Outcome Source
3. Which the corporation would have to pay back in terms of principal payments
and in terms of interest expenses.
a. Goods
b. Products
c. Assets
d. Loans
4. The one that will concoct an account called depreciation.
a. Manager
b. Accountant
c. Contractor
d. None of the above
1
5. They are the finished goods when sold.
a. Cash flow
b. Contingency plans
c. Cost of goods sold
d. Products sold
6. These are the selling, general, and administrative expenses.
a. Period Costs
b. Annual income
c. Source of funds
d. Cost of goods sold
7. These are the funds going from one container or one circle to another container
or another circle comprise the funds flow except for the account called
depreciation.
a. Benchmarking
b. Funds flow
c. Scenario planning
d. Participatory planning
8. It is a situation when cash inflows are greater than the cash outflow.
a. Assets
b. Net cash outflow
c. Cash inflow
d. Container of funds
9. It is the basis for the entire construction of the financial statement.
a. Double entry accounting
b. Credits
c. Depreciated value
d. None of the above
10. These are the stockholder’s equity, short-term debt, long term debt, suppliers
credit, and accrued expenses.
a. Liabilities
b. Credits
c. Assets
d. Cash Flow
11. These are the accounts for cash, accounts receivable, inventory, fixed assets,
and other assets.
a. Income
b. Cash outflow
c. Container of funds
d. Cash inflow
12. It is the source of funds.
a. Cash
b. Liabilities
c. Salary
d. None of the above
13. It is the uses of funds
a. Paid liabilities
b. Purchased assets
c. Container flow
d. None of the above
2
14. These are abstractions of all the business transactions going on in an
enterprise.
a. Flow of assets
b. Income Statement
c. Financial Statement
d. None of the above
15. It is also called the profit and loss statement.
a. Debt
b. Income flow
c. Financial statement
d. Income Statement
Lesson
3
Forecasting Financial Statements
Hi! We are now in our module 4, how are you today? I hope you enjoyed the
discussion and activities in our module 3. Before we talk about the forecasting
financial statements for Entrepreneurship as a career, let’s have a simple activity first.
What’s In
Web Diagram
1. Complete the Web Diagram below. Think of terms that can be associated with
the word at the center. Write as many terms as possible.
Cash Flow
3
Now that you already know the relevance of “cash flow” in our lives and its
importance in an entrepreneur, let’s have another question that you can answer to
foresee the lesson.
2. How do you determine your own wealth? And, how would you know if an item is
an asset, liability, or both?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
__________________________________________________________________
Notes to the Teacher
This module is designed for the students to fully acquire
the expected learning competencies. It includes series of activities
which are suggested to be accomplished for better understanding
and mastery of the lesson. The teacher should give proper
assistance when necessary.
What’s New
Case Study
Read and understand the case carefully and answer the given questions below.
Ricardo Cortez and Josie Hernandez were partners in a apparel factory in
Pampanga. They had 150 workers in the 2000s, who helped them manufacture
different designs of clothes, shoes, slippers, etc. which they displayed and sold by the
thousands in their store at the Clark Expo. They were considered very successful at
that time.
Their apparel business slowed down when either of them doesn’t know the
problem regarding on their financial information on how badly their company is
performing in terms of income management. Ricardo and Josie often quarreled about
it and to their different management styles. Ricardo had more entrepreneurial
characteristics: creative/innovative, flexible, updated on new trends, and was willing
to take risks. Josie belonged to the “old school” of businessmen who could not
understand Ricardo’s propositions regarding the rehabilitation of their business:
4
getting business loans, introducing unique clothes designs, opening “tiangge” stalls,
online selling, etc. She was contented with the small profits they were making.
Since their business is a partnership, Ricardo cannot carry out his plans
without Josie’s consent. Josie’s pessimism, for him, is unacceptable and he foresees
the closure of their business in a few more years if Josie will go on with her way of
thinking.
Who has the problem?
What is their problem?
1.
2.
3.
1. What do you think will happen to their business’ market condition in the
future?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________________________________________________________
What is It
Congratulations! You were able to know your career path as early as now.
Today, we will discuss the forecasting financial statements for Entrepreneurship as a
career. This will help you to know more of the Entrepreneurship (negosyo) curriculum
exit. Let us start now with the lesson.
Forecasting Financial Statements

Income Statement Forecasting
There is usually a very close relationship between Sales and Cost of Sales (or
Cost of Goods Sold). Many Companies, in determining their selling prices,
conveniently add a specific percentage mark-up or margin to the Cost of Sales,
thus establishing a predictable ratio between the two items. If an enterprise
decides to slap a hundred percent mark-up on its Cost of Sales, the Sales figure
will double the Cost of Sales. As a percentage, Cost of Sales will, therefore, be
fifty percent of Sales.
Table 1: Forecasting Sales and Cost of Sales for XYZ (Php in Thousands)
Year
Sale Forecast
Past Sales (Php 100)
Sales Forecast (Php 000)
Past Cost of Sales (Php)
Cost of Sales Forecast
In Percentage Terms
In Peso Value (Php 000)
2011
%
2012
%
2013
%
1,000.0
100.0
1,100.0
100.0
1,200.0
100.0
2014
%
100.0
1,331.00
700.0
70.0
781.0
71.0
835.0
2015
100.0
1,464.00
69.0
70.0
932.0
5
%
70.0
1025.0
-The Sales Figures are converted to 100.0% over those three years to get a
common size picture. Next, the Cost of Sales is divided by the Sales figure to get
a percentage or ratio of Cost of Sales to Sales. After deriving the percentage or
ratios, one can make a fearless forecast of what the Cost of Sales percentage
will be in the coming years. The Sales Forecast for the next two years can be set
to approximate the growth trend of the last three years. Since Sales grew by
10% from 2011 to 2012 and by 10% from 2012 to 2013, the financial forecaster
can reasonably assume a sales growth of 10% per annum in the next two years.
The sales forecast for the year 2014 is, thus, Php 1,331.00 and for the year
2015, the forecast can be set at Php 1,464.00
-The forecast for the Cost of Sales percentage is 70% of sales for the years 2014
and 2015 as given in table 1. This percentage is merely an average of the
percentages for the last three years (2011 to 2013). One can conceivably use the
latest Cost of Sales percentage (2013) to reflect the most current scenario. The
next step is to apply the 70.0% percentage to the Sales Forecast for the years
2014 and 2015 to get the Cost of Sales peso value forecast for those two years.

Balance Sheet Forecasting
Forecasting what the Balance Sheet of an enterprise will look like in the future
depends a lot on the future Sales. The Current Assets of the balance Sheet
include Cash, Marketable Securities, Accounts Receivables, Inventories (Raw
Materials, Work-in-Process, and Finished Goods), and other current Assets.
Assets in the Balance Sheet must always equal liabilities and owners’ equity.
However, in financial forecasting, most probably, the respective totals of Assets
and Liabilities plus Owners’ Equity will not be the same in the initial attempt to
construct a forecasted or Pro Forma Balance Sheet.
Table 2. Pro-Forma Balance Sheet As of Year Ending December 31, 2012 and
December 31, 2013 (In Thousand Pesos)
Audited
Forecasted
Balance Sheet Balance Sheet as
as of Dec. 31, of Dec. 31, 2013
2012
ASSETS
Current Assets
Cash
Accounts Receiveable
Inventories
Total Current Assets
Gross Fixed Assets
Accumulated Depreciation
Php 10,000
30,000
15,000
55,000
100,000
60,000
5,000
Php 120,000
Accrued Expenses
5,000
Short Term Loans
10,000
Total Current Liabilities
30,000
Long Term Loans
50,000
Stockholder's Equity
Paid in Capital
Retained Earnings
Total Stockholder's Equity
Total Liabilities and
Stockholders' Equity
Php 10,000 Minimum cash balance
45,000 30 days of Sales (latest month)
22,500 15 days of Sales (ltest month)
77,500
119,000 Additional deptreciation computed
at Php 19,000
50,000 Additional deptreciation computed
at Php 10,000
69,000
5,000 Assume same level as last year
151,000
40,000
Net Fixed Assets
Other Assets
Total Assets
LIABILITIES
Current Liabilities
Accounts Payable
15,000
30,000
10,000
40,000
Php 120,000
Assumption Used
22,500 Enterprise experience where
the level of Accounts Payable
is roughly the same as the
inventories level
7,000 Same but additional Taxes Payable
included.
7,000 Balancing Figure to make
Liabilities equal to Assets
36,500
69,000 Increased by Php 19,000 due to
additional Fixed Asset acquisition
of Php 19,000
30,000 Same level as last year.
16,000 Additional Net profit after Taxes
46,000
Php 151,500
6
-Table 2 provides an example of a Pro-Forma Balance Sheet with explanatory
notes on the side to indicate the assumptions used by the forecaster.
-Since there would be additional long-term loan to finance the additional Fixed
Assets, interest expenses would go up. This means that the forecaster would
have to adjust the Pro-Forma Income Statement previously made as shown in
Table 3. Since the Net Income After Taxes would go down from Php 6,000 to
Php 5,400, there would be a need to increase loans by Php 600 in order to
balance the Balance Sheet.
Table 3. Pro-Forma Income Statement and Adjusted Pro-Forma Income
Statement for year 2013.
Income Forma Income
Comments
Statement
Statement
Sales
Php 540,000
Php 540,000
Cost of Good Sold
340,000
340,000
Gross Profit
200,000
200,000
Operating Expenses
186,000
186,000
Less Interest Expenses
6,000
6,800 Additional Expenses of Php 800
Equals Net Profit before Taxes
8,000
7,200
Less Taxes
2,000
1,800 Taxes Decrease by Php 200
Equals Net Profit after Taxes
Php 6,000
Php 5,400 Net effect of Php 600

Funds Flow Forecasting
To forecast the Funds Flow, the financial forecaster should compute for
the increase or decrease in the different items found in the Assets and
Liabilities columns, when comparing the actual or previous year’s Balance
Sheet and the Pro Forma Balance Sheet. Decreases in Assets and increases in
Liabilities are sources of funds, while increases in Assets and Decreases in
Liabilities are uses of funds.
Table 4. Cash Position Forecast using Sources and Uses of Funds
Beginning Cash balance
(as of last Balance Sheet)
Php 1,000
Add Source of Funds
Increases in Liabilities Accounts
Decreases in Assets Accounts
Equals Cash Avalaible
Subtract Uses of Funds:
Decreases in Liabilities Accounts
Increases in Assets Accounts
Equals Net Cash Position
300
600
Php 1,900
500
200
1,200
-The Funds Forecast is also called the Cash Position Forecast as can be seen in
Table 4. Starting from the beginning cash balance, the forecaster adds the
Sources Funds to obtain Cash Available. From there, the Uses of Funds are
subtracted in order to obtain the Net Cash Position (Ending cash Position)
Table 5. Adjusted cash Position Forecast
Beginning Cash Balance
(as of last Balance Sheet)
Php 1,000
Add Source of Funds:
Increses in Liabilities Accounts
300
Decreases in Assets Accounts
600
Equals cash Available
Php 2,100
Subtract Uses of Funds:
Decreases in Liabilities Accounts
500
Increases in Assets Accounts
200
Equals Net Cash Position
Php 1,200
7
add
200
add
200
-The Forecaster should adjust the reduction in the Net Fixed Assets account
caused by the increase in additional Accumulated Depreciation form the
previous year to the forecasted year.
-if one assumes that the Additional Accumulated Depreciation is Php 200, then
this means that the Depreciation Expenses for the year is also Php 200. Table
5. Reflects these adjustments. Other adjustments have to be made because of
the accrual method used.

Cash Flow Forecasting
The entrepreneur or finance manager is concerned about the enterprise’s
survival on a day-to-day basis as well as its long-term sustainability. Cash is a
precious commodity that will make the enterprise live on and on. It is crucial,
therefore, to monitor and budget the enterprise’s cash position on a daily,
weekly, monthly, and yearly basis.
Table 6. ACME Enterprises Actual and Projected Income Statements (In Pesos)
Actual
January to December 2012
Sales*
450,000
Cost of Sales
Materials
130,000
Labor
68,000
Manufacturing
Overhead
36,000
Depreciation
36,000
Total Cost of Sales
270,000
Gross Profit
Selling General
and Administrative
Expenses**
Operating Profit
Interest Expenses***
Net Profit Before Taxes
Taxes***
Net Profit After Taxes
Jan
50,000
Feb
55,000
Projected for 2013
Mar
Apr
May
60,000
60,000
55,000
Jun
55,000
Jul
50,000
15,000
6,000
16,500
6,000
18,000
6,000
18,000
6,000
16,500
6,000
16,500
6,000
15,000
6,000
3,000
3,000
27,000
3,000
3,000
28,500
3,000
3,000
30,000
3,000
3,000
30,000
3,000
3,000
26,500
3,000
3,000
26,500
3,000
3,000
23,000
180,000
23,000
26,500
30,000
30,000
26,500
26,500
23,000
100,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
80,000
72,000
8,000
2,000
6,000
11,000
6,000
5,000
1,250
3,750
14,500
6,000
8,500
2,125
6,375
18,000
6,000
12,000
3,000
9,000
18,000
6,000
12,000
3,000
9,000
14,500
6,000
8,500
2,125
6,375
14,500
6,000
8,500
2,125
6,375
11,000
6,000
5,000
1,375
3,625
-Take the example of ACME Enterprises in Table 6. It has a policy and actually
experiences a 30-day sales collection period. It purchases the raw materials and
pays for the labor costs and outlays for overhead expenses in cash one month
before they recognized as Cost of sales. In other words, ACME’s products must
be produced one month bfore they get sold. Most (80%) of the Selling, General,
and Administrative (SGA) Expenses are paid in cash during the operating
month. However, 20% is paid one month later.
-Interest expenses on long term debt are paid on June 30 and December 31.
The amortization of principal payments is also paid on the same dates. Half of
the taxes for the previous year’s income is paid on April 30 while the other half
is paid on July 31.
-Income Taxes are pegged at 25% of Net Income before Taxes. Beginning Cash
Balance as January 1, 2012 is Php 25,000.

Using Financial Forecast to Evalute Business Investment Decisions
The Income and Cash payback period was introduced as a method to evaluate
business investments. The construction and forecasting of Financial Statements
would help the entrepreneur get a firmer grip on the viability of his or her
enterprise.
8
What’s More
Did you learn a lesson in this module? To better understand it, let’s have
another activity. Enjoy!
Activity 1:
1. Give the four financial statements. Give a brief a statement on how can we
construct them.
a. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
b. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
c. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
d. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
2. How can planning through Financial Statement be useful for the entrepreneur?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_______________________________________________________________Activity 2.
Use the following scenario to fill out the Monthly Cash Flow Statement
Worksheet.
You pay a $150
You re ce i ve your
You pay re nt of
You pay your
Car payme nt
monthly gross
$450 pe r month
me di cal i nsurance
salary of $2,000
of $75 a month
You pay your
You pay your car
You pay for
Your monthly
re nte r's i nsurance
i nsurance of $150
monthly groce ri e s
uti li ti e s are due .
$200
You owe $125.
of $20
Your monthly bi ll
It's your mothe r's
taxe s come out
for gasoli ne
bi rthday. You
of your payche ck
you go to a movi e
come s i n and you
purchase a $50
Fe de ral Tax $150
wi th a fri nd that
must pay $75
pre se nt
State tax $50
cost $10
Soci al se curi ty $200
You put $100 i nto
You hi t a pothole
You go out to
You fi nd the
savi ngs for a
and have a flat
di nne r wi th
pe rfe ct outfi t for
vacati on at the
ti re . You must pay
fri e nds. Your bi ll i s
your date thi s
be ach
$75 for a ne w
$25.
we e ke nd. You pay
Complete this
one
worksheet
$100scenario.
for the oufi t
with the information from the above
9
Income
Gross Salary
Total Income
Expenditures
Fixed Expenses
Rent
Renter's Insurance
Automobile loan payment
Automobile insurance
Medical Insurance
Revolving Savings fund
Federal Income tax
State income tax
Social Security tax
Total fixed expenses
Variable Expenses
Food
Utilities
Gasoline and maintenace
Clothing and personal upkeep
Gifts
Miscellaneous
Total Variable Expenses
Total Expenses
SURPLUS (DEFICIT)
Cash Flow Statement Worksheet Rubric
The student did not follow directions. (minus 2)
The student created a cash flow statement that was complete. The
cash flow staement provided detail of income and expenses (plus 10)
the student attempted to craete a cash flow statement but they were
not thorough. (plus 5)
The student did not attempt. (0 point)
the student craeted a balance sheet that was complete. Detailed
infromation was provided for assets and liabilities. (plus 10)
the student did not attempt. (0 point)
the assignment was late. (loss of one point per day)
Total
10
What I Have Learned
How’s the activity? Did you enjoy it? I hope so. This part is the generalization
which contains the summary of what you learned. I want you to fil in the blanks to
complete the sentence below.
1.
2.
3.
4.
5.
In forecasting, it is important to examine the critical values that affect the
industry and business that one is in and assess how these variables will behave
so that ____________________________________________________________.
In the deciphering the past financial condition of an enterprise, we have to
quantify the relationships of the many items found in the different financial
statements because _______________________________________________________.
Market prices tend to be relatively low in a very competitive business for the
reason that _______________________________________________________________.
It is important to realize that if one expects inflation to affect major items in the
Cost of Sales and in the selling prices of the company, then there is a need to
________________________________________________________________________.
The forecaster can use either short or long term loans to fund any shortfall in
the financing assets for the reason that ____________________________________.
What I Can Do
Now it’s your time to shine! It’s time to apply all the inputs that you learned
from this module. It’s application time!
1. Observe your own financial expenses or monitor your wealth on this week.
Identify one problem that you think you have in managing your expenses. Solve
your identified problem by going through simple steps in managing your
expenses. (Note: Minimum of 5 steps)
My Own Financial Literacy
PROBLEM:
Step 1
Step 2
Step 3
Step 4
11
Step 5
Step 6
Step 7
Step 8
2. What have you learned in giving steps in managing your own financial
expenses?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
____________________________________________________________________________
Assessment
Before the presentation of the mini-lesson, you had your pre-test right? Now,
this will serve as your post-test. This will test you if you were able to understand the
lesson well. Good Luck!
Please answer on a separate sheet of paper.
CORRECT THE SENTENCES: Identify the word that makes the sentence incorrect
and write down the correct one.
1. Market prices tend to be relatively high in a very competitive business.
2. After forecasting Sales and Cost of Sales, the Gross profit figures can be derived
by adding the Cost of Sales from Sales.
3. The financial forecaster can go through each Operating Expense item and
determine how it will behave in the future as Sales rise.
4. Once all the Operating Expenses are computed, they should be summed up.
The total is then added from the Gross Profit forecasted in order to derive
Operating Profit.
5. Once Current Liabilities must be individually looked up. Prepaid insurance, for
example, can be determined by examining how much premium will be required
to insure the company’s properties for the coming year.
COMPLETE THE SENTENCES: Choose the correct word or phrase from the box to
complete each sentence.
ENTERPRISE
GOODWILL
FIXED ASSETS
ENTREPRENEUR
CASH BALANCE
ORGANIZATIONAL EXPENSES
12
PATENTS
DEPRECIATION EXPENSES
BALANCE SHEET
MARKETABLE SECURITIES
1. Whenever we talk about the __________________________, assets must always
equal liabilities and owner’s equity.
2. ______________________________
comprise
feasibility
studies,
enterprise
promotion activities, pre-operating expenses, and other set-up costs.
3. ____________________ is the premium paid by the enterprise for an asset or share
of stock whose book value is lower than the purchase or qcquisition price.
4. ____________________ are payments to holders of an invention or technology
5. Forecasting _________________________ requires an assessment of the
enterprise’s future requirements for land, building, machinery, equipment,
furniture, fixtures, and other long lasting assets.
6. If the Cash goes below the minimum balance, the forecaster can cover the cash
shortfall by obtaining more loans or by liquidating _________________________
into cash.
7. Marketable Securities can be the repository of excess cash. It can be drawn
down or reduced if the _______________________________ falls below the minimum
required.
8. The ___________________________ may also decide to collect all of the Advances
and not give any more of such Advances to employees, in which case the
advances to Employees becomes zero for the next year.
9. The construction and forecasting of Financial Statements would help the
_____________________ get a firmer grip on the viability of his or her enterprise.
10. To determine the _________________________, the forecaster has to refer to the
depreciation schedules calculated by the enterprise’s accountants for each fixed
asset.
Additional Activities
Now that you know the different forecasting of financial statements in
Entrepreneurship.
Answer the following questions or situations based on what you’ve learned from
the lesson.
1. Name some challenges in making financial statement, other than those
mentioned in this lesson that may occur in future scenarios.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2. Which among the four financial statements will most likely you will use in
forecasting your own business? Explain your answer.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
3. What do you think will the government impose in preventing financial crisis in
our
Country
amidst
this
pandemic
situation?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
13
14
Presents ideas in Ideas are too
a consistent
general
manner
Organized
Some
beg/mid/end
organization;
attempt at a
beg/mid/end
Understanding Writing shows
Writing shows a Writing shows
strong
clear
adequate
understanding
understanding understanding
Word Choice Sophisticated use Nouns and verbs Needs more
of nouns and
make essay
nouns and verbs
verbs make the
informative
essay very
informative
Sentence
Sentence
Sentence
Sentence
Structure
structure
structure is
structure is
enhances
evident;
limited;
meaning; flows
sentences mostly sentences need
throughout the
flow
to flow
piece
Mechanics
Few (if any) errors Few errors
Several errors
3
2
Numerous
errors
No sense of
sentence
structure or
flow
Writing shows
little
understanding
Little or no use
of nouns and
verbs
No organization;
lack
beg/mid/end
Ideas are vague
or unclear
1
Income
Gross Salary
Areas of
4
Assessment
Ideas
Presents ideas in
an original
manner
Organization Strong and
organized
beg/mid/end
Criteria for Activities
$ 2,000
Total Income $ 2,000
Expenditures
Fixed Expenses
Rent
$ 450
Renter's Insurance
$ 20
Automobile loan payment
$ 150
Automobile insurance
$ 50
Medical Insurance
$ 75
Revolving Savings fund
$ 100
Federal Income tax
$ 150
State income tax
$ 50
Social Security tax
$ 150
Total fixed expenses $ 1, 195
What I Know
1. c. Corporation
2. a. Financial Statements
3. D. Loans
4. B. Accountant
5. C. Cost of goods sold
6. A. Period Costs
7. b. Funds Flow
8. b. Net cash outflow
9. a. Double entry accounting
10. a. Liabilities
11. c. Container of funds
13. a. Cash
14. c. Financial Statements
15. d. Income Statement
Variable Expenses
Food
$ 200 + $ 25 = $ 225
Utilities
$ 125
Gasoline and maintenace
$ 75 + $ 75 = $ 150
Clothing and personal upkeep $ 100
Gifts
$ 50
Miscellaneous
$ 10
Total Variable Expenses $ 660
Total Expenses $ 1, 855
Assessment
CORRECT THE SENTENCES
1. Low – High
2. Subtracting – Adding
3. Forecaster – Accountant
4. Subtracted – Added
5. Assets – Liabilities
COMPLETE THE SENTENCES
1.Balance Sheet
2. Organizational Expenses
3.Goodwill
4. Patents
5. Fixed Assets
6. Marketable Securities
7. Cash Balance
8. Enterprise
9. Entrepreneur
10. Depreciation Expenses
Answer Key
SURPLUS (DEFICIT) $ 145
Development Team of the Module
Writer:
Editor:
Reviewer:
ARIEL G. GUTIERREZ – T-II Diosdado Macapagal Memorial High School
JANE P. VALENCIA, EdD – EPS – Mathematics
JANE P. VALENCIA, EdD – EPS – Mathematics
Illustrator:
Layout Artist:
Language Reviewer:
Management Team
ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent
LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS
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