Jay Adrian M. Lozano Nov.

7, 2020

G-12 Bezos

What I Know
PRE-TEST

Let us see how much you already know about the topics which we are going to discuss in this
module. You may start answering now.

1. c

2. d

3. d

4. d

5. c

6. c

7. b

8. c

9. d

10. d

11-15 Problem Solving:

Marie Sol, a financial analyst for ABM Supermarkets, has prepared the following sales and cash
disbursement estimates for the period of August through December of the current year.

A Cash Budget for ABM Supermarket

Sept Oct Nov Dec
Cash receipts
Sales (cash 90%) P 450 P450 P 540 P630
Add: Sales Collected (1 mo. lag 10%) 40 50 50 60
Total cash receipts 490 500 590 690
Less: Total cash disbursements 500 700 400 500
Net cash flow (10) (200) 190 190
Add: Beg. cash balance 25 15 (185) 5
Ending cash balance 15 (185) 5 195
Minimum balance 50 50 50 50
Required financing 35 235 45
Excess Cash 45

ACTIVITY
UPCOMING CHISTMAS PARTY
PLAN:

What: Christmas Party

Where: Surigao Del Norte National high school

When: December 25, 2021 at exactly 5pm

Why: For enjoyment and celebrating the birthday of Jesus

How Much? 500 pesos each students

RESOURCES/FOOD

 Cash
 Tables
 Chairs
 Christmas Music
 Water dispenser
 Cases of COKES inventory
 Boxes of Spaghetti inventory
 Lechon
 Disserts inventory
 Jeclo food catering services
 Decorations
 Speaker
ANALYSIS
CURRENT ASSETS LONG TERM ASSETS
 Cash  Tables
 Cases of COKES inventory  Chairs
 Boxes of Spaghetti inventory  Christmas Music
 Lechon  Water dispenser
 Disserts inventory  Decorations
 Jeclo food catering services  Speaker

Cash and foods are current asset because they are expected to be used and have beginning
and end within a year while tables, chairs, etc... are equipment and expect to use, repair,
replace or convert cash beyond the normal operating cycle of at least 12 months and often
they are used for years. That’s what they are related to working capital asset to any activity
because it is just the same process but only differ in gaining profit. You cannot gain profit in a
normal level Christmas party because usually in order to have money in Christmas party you
must participate in games and other activity.
APPLICATION
Interview your parents or any member who manages your family’s finances. Ask him/her the
reasons for holding cash. Categories all their answers into for areas: transactional,
compensating balance, precautionary, and speculative.

Transactional Compensating Precautionary Speculative

balance
 To buy food  Pag-ibig loan  Emergency  Money for
items  Bank saving fund profitable
 Pay fees  Credit with a  Medical bills opportunities
 Pay bills bank to our lola
 Buy
equipment
 To make
purchase
 To pay
expenses
 To pay taxes
 To pay
interest

ENRICHMENT
1 Keep Operating Expenses Under Control.
To make Marie Sol manage her accounts better she must she must learn to keep her
operating expenses under control. Many people regularly check and control their
expenses in most common things like rent, tax, bills, food and transportation but doesn’t
check their expenses in things like buying detergent, soap, etc.
2 Invest Current Balances In Bank.
Marie Sol can transfer her current savings account balances into a Time Deposit. The
money in a time deposit must hold for the fix term to receive the interest in full. Typically,
the longer term, the higher the interest rates Marie Sol can receives.
3 Have a Plan for Excess Cash.
Effective cash management is all about increasing the amount of money that comes into
the person and minimizing the amount that goes out. It is also important to Marie Sol to
recognize whether the excess cash will be required to use or not. Marie Sol can use excess
cash to invest or make business.
Post-test
1. c

2. b

3. a

4. d

5. b

6. a

7. c

8. c

9. a

10. b

11-15 Problem Solving:

Marie Sol, a financial analyst for ABM Supermarkets, has prepared the following sales and cash
disbursement estimates for the period of August through December of the current year.

A Cash Budget for ABM Supermarket

Sept Oct Nov Dec
Cash receipts
Sales (cash 90%) P 450 P630 P 360 P540
Add: Sales Collected (1 mo. lag 10%) 30 50 70 40
Total cash receipts 480 680 430 580
Less: Total cash disbursements 500 500 600 700
Net cash flow (20) 180 (170) (120)
Add: Beg. cash balance 25 5 185 15
Ending cash balance 5 (185) 15 (105)
Minimum balance 50 50 50 50
Required financing 45 35 55
Excess Cash 135