Mary Mickaella R.

Ventura

BSA 3-A

Financial Management Final Exam

Item no. 1

1. What is your Favorite Topic or The Topic you loved most in Financial Management (PRELIMS to
MIDTERMS)? Why that topic? What lesson or learnings did you get and How can you apply it in your
life? How can it help you in your career?

Your answer shall show the depth of knowledge and mastery of the topic you have chosen.

Answer:

My favorite topic is the deeper understanding about finance which takes place on week 3 of
the discussion. Goal ng finance is mamaximize ang shareholders wealth. Ang goal ng finance is not to
maximize profits, but to maximize shareholder's wealth. Ang pagpapalaki sa profits ay short-term at
ang tendency ay nako-compromise na ang stakeholders, lalo na ang environment. Hindi ito
makabubuti sa future ng isang company at maaari pang mauwi sa pagkasara. Kaya, mahalaga na
ang pinapataas ay ang value or wealth ng company at hindi naka-focus sa kita lang at para na rin sa
long term run ng isang company. Ang value ng pera ngayon ay hindi na same ng value sa future
because of inflation. Ang impact ng inflation sa time value of money ay mas lumiliit yung value ng
pera over time. In inflation mas tumataas yung price ng bilihin, effectively nababawasan din yung
bilang ng goods and services na mabibili mo sa pera mo in the future kesa sa pera mo ngayon. Ang
average healthy inflation rate ay 3%. Kapag masyadong mataas ang inflation rate, masyadong
mabilis tumaas ang presyo ng mga bilihin ang tendency gagastos ka na ngayon dahil iniisip mo na
mas maganda na bumili ako ngayon dahil tataas ang presyo nito sa susunod. So mas marami kang
bibiling property mas kaunti ang pera na hawak mo. Kapag masyadong mababa naman ihohold mo
yung money di ka gagastos babagal yung economy o yung paggalaw ng pera.

The cash cycle is very important not only to the business but also to the creditors and suppliers
that transact and rely on the entity to project their own timings. There are 3 Cash Conversion Cycle: 1.
Days in Inventory - ratio sya to measure yung average number of days na hinohold yung inventory
nila bago ibenta. 2. Days REceivable - number of days kung kelan may outstanding na invoice pa yung
customer bago ito kolektahin. 3. Days Payable - average number of days na maococnsume ng
company para mabayaran ang accounts payable nila. In finance, we use projections to track the
performance or the situation ng pera, it is because it is base on sales na makakatulong sa
pagdetermine ng kita by means of different analysis. It is also a way to study the economy more,
helps us to be wise in investments matter.