Republic of the Philippines

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES

Batangas Extension Program
Brgy. Bungahan Cuenca Batangas

ROSALIE AQUINO
BSIE IA 3A
RESEARCH WORK # 11
Seminar in Technology and Livelihood Education

BUSINESS MATHEMATHICS
1. Identify the different mathematical principles ad their
applications to business
- Fractions and Decimals
A fraction explains how many parts of a whole. It is expressed by a top
number (the numerator) and a bottom number (the denominator). A
decimal is a fraction where the denominator is a power of ten (such as
10, 100, 1000, etc.) and can be written with a decimal point.
Formula : So, with an equation with decimals, we can use the same
method we used to clear fractions—multiply both sides of the equation
by the least common denominator. Look at the decimals and think of the
equivalent fractions. Notice, the LCD is 100. By multiplying by the
LCD, we will clear the decimals from the equation.
- Fundamental Rules about Fractions
To add or subtract fractions they must have the same denominator (the
bottom value). If the denominators are already the same then it is just a
matter of either adding or subtracting the numerators (the top value). If
the denominators are different then a common denominator needs to be
found.
Formula : Fraction = number of parts / total parts
Every fraction has a numerator that equals the number of parts we have
and a denominator equaling the total number of parts in a whole.
- Changing Decimals to Fractions
 To convert a decimal to a fraction, place the decimal number over its
place value. For example, in 0.6, the six is in the tenths place, so we
place 6 over 10 to create the equivalent fraction, 6/10.
- Expressing Fractions as Decimals
A fraction is made up of two parts: a numerator and a denominator. It is
used to represent how many parts we have out of the total number of
parts. The line in a fraction that separates the numerator and
denominator can be rewritten using the division symbol.
- Operations with Fractions
A fraction remains equivalent if the numerator and the denominator are
multiplied or divided by the same number. A fraction is written in its
simplified form if the numerator and the denominator have no common
factor.
- Multiplying Fractions
The multiplication of fractions starts with the multiplication of the given
numerators, followed by the multiplication of the denominators. Then,
the resultant fraction is simplified further and reduced to its lowest
terms, if needed.
- Division of Fractions
We know that division is a method of sharing equally and putting into
equal groups. We divide a whole number by the divisor to get the
quotient. Now, when we divide a fraction by another fraction, it is the
same as multiplying the fraction by the reciprocal of the second fraction.
The reciprocal of a fraction is a simple way of interchanging the
fraction's numerator and denominator.
- Percent in Business
Businesses often use percentages to gauge profitability. Calculating
profit as a percentage of sales revenue gives us the gross profit margin
percentage. A high percentage shows that a business keeps much of its
sales revenue as profit. A low percentage means they keep only a small
amount of sales revenue as profit.
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2. Be able to perform calculating the following
- List price
When this price is the same as the one recommended by the
manufacturer or maker of the item, then it is called the list price. You'll
see this noted as the MSRP (manufacturer's suggested retail price), a
price the manufacturer has set based on supply and demand of their item.
There is no hard and fast formula to find this list price. You'll most often
see an MSRP for things such as electronics and cars. If a product doesn't
have an MSRP, then the list price is simply the initial price of the
product before any discounts are applied.
- Trade discount rate
The trade discount may be stated as a specific dollar reduction from the
retail price, or it may be a percentage discount. The trade discount
customarily increases in size if the reseller purchases in larger quantities
(such as a 20% discount if an order is 100 units or less, and a 30%
discount for larger quantities).
- Equivalent discount rate
Equivalent Discounts. Equivalent discount. Discounts, as we all know, is
the deduction on the price of the items. It is always calculated on the
marked price. Similarly equivalent or successive discounts are more than
one discount that is given to the customers.
- Present value and true discount
Present Value or Present Worth(PW) = Amount which will become
equal to face value at the end of T years, if placed at a specific interest
rate of R%. Banker's Discount, BD = Simple interest on face value for
 unexpired time. True Discount, TD = Simple interest on present value
for unexpired time.
3. Be able to understand Basic Financial Statements
- Balance Sheet
A balance sheet is a financial statement that reports a company's assets,
liabilities and shareholders' equity at a specific point in time, and
provides a basis for computing rates of return and evaluating its capital
structure.
- Income Statement
An income statement is a financial statement that shows you the
company's income and expenditures. It also shows whether a company is
making profit or loss for a given period. The income statement, along
with balance sheet and cash flow statement, helps you understand the
financial health of your business.
- Statement of Cash Flow
In financial accounting, a cash flow statement, also known as statement
of cash flows, is a financial statement that shows how changes in
balance sheet accounts and income affect cash and cash equivalents, and
breaks the analysis down to operating, investing, and financing
activities.