MARYKNOLL HIGH SCHOOL OF STO. TOMAS, INC.

8112 Sto. Tomas Davao del Norte

Telefax: 084-829-1272
Email: maryknoll.sto.tomas@gmail.com

STUDENT LEARNING PLAN

SUBJECT: BUSINESS FINANCE

UNIT: 1
Topic/Lesson:
Review of Financial Statement Preparation, Analysis, and Interpretation
nd
2 Semester
Quarter: 3rd
Week:
Time Allotment: 4 hours

Content Standard
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.

Performance Standard
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

Day One:
Specific Objectives
At the end of this lesson, the learners will be able to identify and explain the basic steps in the accounting
process (accounting cycle).

I. Introduction
 • Introduce the following learning objectives using any of the suggested protocols (verbatim,
own words, read-aloud):

II. Interaction

Lesson Development

Procedure
A. Discussion
The teacher will discus to the learners the following:
- The Accounting Equation
- T-account analysis
- Nominal Accounts
-
B. Activity
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.
- complete the transaction using the accounting equation
 C. Transition Statement
- From the given activity, the student will be able to learn on how to identify and solve the
business transaction using the basic accounting equation.

D. Synthesis/Closure
- In today’s lesson it talks about on how to identify and record business transactions using the
accounting equation.
Day 2
Specific Objectives
 Explain the basic steps in the accounting process.
I. Introduction
Procedure
A. Simple Recall
The teacher will ask the students the following questions:
 What is the accounting equation of the financial statement?
 What are the accounts that belong to asset, liabilities and owner’s equity?

B. Motivation
 Identify the following whether the transactions given should be recorded or not.
1. Julia bought a car for personal use.
2. Richard invest a delivery van worth P 400,000.00

II. Interaction
B. Discussion
The teacher will discuss to the learners the following:
- The Accounting Cycle

C. Activity
On June 1, Maya Cruz opened the Ganda Beauty Salon. During the first month, the
following selected transactions occurred:
1. Deposited PHP5,000 cash in the City Bank in the name of the business
2. Paid PHP800 cash for beauty supplies
3. Purchased equipment at a cost of PHP12,000 paying PHP2,000 in cash and the balance
on account
4. Received PHP1,200 cash for services rendered
5. Paid PHP500 cash as a salary to a beautician
6. Withdrew PHP400 cash for personal expenses
- Using the following format, identify the effects of above transactions to the accounting
equation

E. Transition Statement
- The activity given helps the learner to master the accounts using the accounting
equation.

F. Synthesis/Closure
- The accounting cycle is a continuous process of accumulating, summarizing and
reporting financial information.
Day 3
Specific Objectives
• Define the measurement levels, namely, liquidity, solvency, stability, and profitability.

I. Introduction
Procedure
A. Communicate learning objective
Introduce the following learning objectives using any of the suggested protocols (verbatim,
own word, read-aloud):
• Introduce financial ratios
• Define liquidity
• Solve for liquidity ratios (current and quick)
• Analyze, interpret, and compare the liquidity ratios of sample Philippine companies
B. Motivation
1. Ask them if they have tried buying from sari-sari stores on credit.
2. Ask them what the implications are if you or your household don’t pay your obligations to your
neighbour’s sari-sari store.
3. Write their answers on the board.
4. Ask them, if a business does not pay its obligations on time, will it also have the same experiences like
the household not paying its obligations? What could possibly happen to the business? Short-run? Long-
run?
II. Interaction
A. Discussion
Introduce the four main categories of financial ratios:
• Liquidity
• Profitability
• Efficiency
• Leverage
B. Activity
Provide exercises.
• Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio?
• Inventory is PHP150. Accounts payable is PHP450. Cash and accounts receivable total
PHP800. What is the current ratio? Quick ratio?
• If current ratio is 1.7, what is the total accounts receivable if cash is PHP20,000, inventory
is PHP7,500, and accounts payable is PHP30,000.
• Cash is 30% of total current assets. If current ratio is 2.3, what is the new current ratio if
total non-cash current assets grow by 50%?
C. Transition Statement
- Through this activity the students can practice and master solving liquidity ratios..

D. Synthesis/Closure
- A high current ratio is not necessarily good. Although a high current ratio would mean that
there is a higher probability that the company can meet its short-term obligations, its assets
may not be earning as much and the company may have given up long-term investment
opportunities.