Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

LEARNING ACTIVITY SHEET IN BUSINESS FINANCE

THE MAJOR ROLE OF FINANCIAL MANAGEMENT AND THE DIFFERENT INDIVIDUALS
INVOLVED
Name of Learner: ______________________________________
Grade Level: ___________________________________
Strand/Track: ABM-ACADEMIC_______________________
Section: ______________________________________

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Date: (Introduction to Development)
(Engagement)
(Assimilation)

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A. Background Information for Learners
This lesson will help you learn and understand the major role of financial
management and the different individuals involved. This is designed to help you in

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making financial decisions about spending, budgeting, investing in personal
perspective and business context. Through this lesson, you will also learn that the
goal of financial management is to maximize the value of shares of stocks or the
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wealth maximization and stakeholder within an organization.

B. Learning Competency with code

The learners shall be able to explain the major role of financial management and the
different individuals involved. (ABM_BF12-IIIa-1)
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C. Directions/ Instructions
After going through with this unit, you are expected to:
1. Use the Learning Activity Sheet with care.
2. Read the instruction carefully before doing each task.
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3. Observe honesty and integrity in doing the tasks.

4. Record your points for each activity
5. Always aim to get at least 80% of the total number of given items.
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6. Return this Learning Activity Sheet on Friday or on the schedule retrieval of

module in your Barangay.
7. If you have any questions or concern, you can message your teacher. Let
us start your business finance activity!
.
D. Exercises / Activities
DAY 1
D.1 INTRODUCTION
a. What I need to Know
After going through with this unit, you are expected to:
1. Have an appreciation of what the overall objective of management should
be.
2. Describe the goals of the firm and explain why maximizing the value of the

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

firm is an appropriate goal for a business.

3. Identify factors that influence the change in market price.
4. Describe who are responsible for financial management within an
organization.
b. What’s New?
Activity 1: “Word Cloud”
The
illustration
below
is
called
a
word
cloud, 
which
consists
of
a
number


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of
words
and
/
or
groups
of
words
related
to “finance”. After
studying
this
word
cloud
read the direction and answer the exercise
that
follows. Write your
answer in your answer sheets.

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T AN
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Directions: Select
three
 words
and/or
three
groups
of
words
from
the


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illustration
above that 
have something to
do
with
Finance.

1. __________________________________________________________
2. __________________________________________________________
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3. __________________________________________________________
4. __________________________________________________________
5. __________________________________________________________

MY SCORE:
/5

D.2 DEVELOPMENT
a. What I Know?
Activity 1: FINANCE VOCABULARY
Study the scrambled letters and try to rearrange the letters to form a word that
relate to the financing decisions. Write your answer in your answer sheets.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

SCRAMBLED LETTERS UNSCRAMBLE HINT/CLUE

GNITEDUBG B_D______ The act of estimating
revenue (in the form of
their allowance) and
expenses over a period of
time (in this case, on a
daily basis).
GITSEVNIN __V_____G The act of allocating

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resources, usually money,
with the expectation of
generating an income or
profit.
NGICNANIF F________ The act involving
SNOISICED D_______ S decisions on where to use

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their allowance.
FSDNU FO SECRUOS S______ __ F___ The act of looking for
S people or institutions that
AN will give us the money we
need if lack of funds is
met.
DNENDIVID SNOISICED D________ D____ Decision on net profits
___ S distribution which are;
declaring cash dividend for
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shareholders or retained
profit of business.
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TNEMEGANAM ________L Deals with decision that

LAICNANIF _________T supposed to maximize the
value of shareholders’
wealth (shares of stocks).
ECNANIF F______ Defined as the science
and art of managing
money. (Gitman & Zutter,
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2012).
TIFORP _____T It is a measure of the
financial performance of a
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company for a period of

time.
NIOTAZIMIXAM TIFORP P_____ M______ It is defined as
_____ management of financial
resources aimed at
increasing the profit of the
company.
NIOTAZIMIXAM S__________ Is defined as management
HTLAEW W_____ of financial resources
REDLOHKCOTS M___________ aimed at increasing the
value of the stakeholders
of the company.
MY SCORE:
/10

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Activity No. 2 “Who works in a company”

Directions: Complete the sentences with the different individuals who are
responsible for financial management within an organization inside the box.
Write your answer in your answer sheets.

Controller VP for Production Treasurer

Shareholders VP for Marketing Board of Directors
Internal Auditor VP for finance VP for Administration

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President (Chief Executive Officer)
Note: VP stands for Vice President

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We are __________ in a corporation. We invest and elect
the Board of Directors. We also carry the objective of
shareholders’ wealth maximization
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We are __________ that represent shareholders. We are
the highest policy-making body in a corporation.
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I’m the ___________. One of my responsibilities is overseeing
the operations of a company and ensuring that the strategies
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as approved by the board.

I’m the ___________. One of my responsibilities is to

formulate marketing strategies and plans.
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I’m the ___________. One of my responsibilities is ensuring

production meets customer’s demands.
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I’m the ___________. One of my responsibilities is

coordinating the functions of administration, finance, and
marketing departments.

I’m the ___________. My responsibilities are management of

financing, investing, operating and dividend policies. The
people who work on me are ___________,
_____________and __________,

MY SCORE:
/10

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

b. What’s In
Activity No. 3 Finance in Everyday life
Directions: Read the scenario of a senior high school student on how finance
works in his everyday life. If you were not able to answer the questions, try to
ask your teacher and relatives or you may read some books or any references to
answer the questions. Write your answer in your answer sheets.

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On Senior High school days, Jenny gets Php 100.00 per day from her
parents.
She spends Php 20.00 on the tricycle.
Before going to school each day she buys a mobile load of Php 10.00
For lunch she buys fried chicken, rice, cooked vegies and biscuits.
Each day on her home she buys merienda for Php10.00

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AN Menu
Price Price
Student Meal No. 1……..........Php 35.00 Biscuits……..……Php 8.00
(Fried chicken, rice & Soup) Banana..……........Php10.00
Student Meal No. 2………......Php 25.00 Pizza slices….......Php10.00
(Bbq, rice & soup) Lumpia Gulay…...Php 5.00
Pakbet…………………………Php 15.00 Puto… …….…….Php 5.00
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Mongo…………………………Php 15.00 Mineral Water… .Php10.00
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Guided Questions:
1. How much did Jenny received from her parents? Use the table below
2. Using the information given above, how much money Jenny spends each day?
3. How much money does she have left in her saving after buying the needed
stuff?
4. If you were Jenny, how and where will you place the excess money?
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5. If you were Jenny, how will you raise additional allowance if you encounter
shortage of cash?
6. What is your recommended budget that you can give to Jenny after you
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complete the table below in order to save money for a new pair of school shoes?

Jenny’s Your Recommended

My Daily Budget Worksheet Budget Budget
Allowance Php 100.00 Php 100.00
Less: Expenses
1.
2.
3
4
Total Cash Balance:

MY SCORE:
/10
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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

NOTE:
1. The activity you done is budgeting wherein you are estimating the
allowance and expenses over a period of time.
2. The activity you done on the excess cash from your budgeting represents
an opportunity for investment.

DAY 2

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c. What is It
You must know this:
BUSINESS FINANCE AS DEFINED
Finance can be defined as the science and art of managing money. (Gitman &
Zutter, 2012). Business Finances is the study of financing and investment decisions

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made from theory to practice. There are three main types of finance: (1) personal,
(2) corporate, and (3) public/government. Business Finance is concerned with
decisions about: AN
.-How much of their earnings they spend
- How much they save or how much they need
- How they invest their savings
- How they raise additional funds they need (Gitman)
You need to be familiar with accounting method, investing strategies and debt
management.
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FINANCIAL MANAGEMENT AS DEFINED
Financial Management deals with decision that supposed to maximize the value of
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shareholders’ wealth (shares of stocks).

• It starts with a plan
• Having cash and resources is not enough
• Financial management in business is a must. It is necessary in all forms and
sizes of businesses. The three major forms of business organization are the sole
proprietorship, the partnership, and the corporation
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ROLE OF FINANCIAL MANAGEMENT

Financial decision-making involves procurement of funds and their optimal
utilization through:
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1. Budgeting is the act of estimating revenue (in the form of their allowance) and
expenses over a period of time (in this case, on a daily basis).
2. Investment (utilization of fund) to allocating resources, usually money, with the
expectation of generating an income or profit • Examples include: expansion,
modernization and replacement, research & development expenditure. Is also
called capital budgeting which is he act of estimating revenue (in the form of their
allowance) and expenses over a period of time (in this case, on a daily basis).
2. Financing (procurement of fund) to determine the appropriate capital structure
of the company and to raise funds from debt and equity. A source of fund is the act
of looking for people or institutions that will give us the money we need if lack of
funds is met.
3. Dividend and (distribution of fund) to determine when the company should
declare cash dividends. Decision on net profits distribution which are; declaring
cash dividend for shareholders or retained profit of business

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Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

4. Working capital decisions concerned with the management of current assets.

The two key decision points in working capital management are: Level of
investment in current assets and Financing of current assets.
Financial Management Decision
1. Capital budgeting – What long-term investments or projects should the
business take on?
2. Capital structure – How should we pay for our assets? Should we use debt or
equity?

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3. Working capital management – How do we manage the day-to-day finances of
the firm. These decisions will ultimately affect the markets perception of the
company and influence the share price.
Factors that Influence Market Price
• Group the factors into two: Factors that the Management can control and external

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factors that cannot be controlled by management

1. profitability
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Controllable by Management Uncontrollable External Factors
1. macroeconomic condition
2. having a good liquidity and 2. political stability
reasonable 3. prospects of the industry where
3. leverage position the
4. dividends 4. company operates
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5. competent management 5. general market sentiment
which affects the 6. flow of foreign funds invested in
6. company’s operating the
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efficiency Philippine stock market

7. coming up with corporate
plans that improve
8. the business prospects of
the company
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The firm must also socially responsible that can influence the perception of
investors. The following ethics, Corporate Social Responsibility and Employee
relationship must also observe:
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The interest of the employee has to be considered in managing a company.

Paying creditors and suppliers on time is a good business practices that will
improve relationships with these parties. Compliance with the requirements of
regulatory agencies also ensures that more smooth operations of business.
Supporting the community where the company operates like hiring the employees
with in the place and help some civic activities. Employers should receive dividends
from a corporation as returns on their investments in form of cash or other
properties.

GOAL OF FINANCIAL MANAGEMENT

1. Shareholder’s Wealth Maximization (overall goal)
From the perspective of a corporation, financial management deals with decisions
that are supposed to maximize the value of shareholders wealth. Wealth
maximization as the goal of the firm implies enhancing the wealth of the firm's

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

stockholders. Managers of a corporation are responsible for making the decisions

for the company that would lead towards shareholders’ wealth maximization
Measurement of the shareholder’s wealth
The shareholders’ wealth is measured based on the current market price of the
corporations' stocks. The market price changes across different periods. Hence,
the value of your investment changes in different points on time based on the
market value at that time. The formula follows:

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Market value of shareholders’ equity = Market price per share of stock
× Number of shares outstanding

Case 1: Assume that Maria bought 10 shares of Globe Telecom at Php 2,510.00
each on September 9, 2019.

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Market value of shareholders’ equity = Php 2,510.00 x 10 shares = Php 25,100.00
Therefore her investment is Php 25,100.00 it represented also as share value or
the wealth of the owners in a corporation.
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Case 2: Assume that the price goes up to Php 2,600.00 per share. We can the
value of her investment increased from Php 25,100.00 to Php 26,000.00.
Therefore, there is an increase in shareholder’s wealth. Corporate owners receive
realizable return through. Increase in share price and earnings per share.
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2. Profit Maximization
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Profit is a measure of the financial performance of a company for a period of time.

Although it is a major driver for increasing the value of stock, an investor should not
rely on profits alone. It is possible that the company has profits but its cash flow is
negative. The goal of profit maximization would result in priority for earning per
share.
DIFFERENT INDIVIDUALS INVOLVED IN FINANCIAL MANAGEMENT retype
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SHAREHOLDERS
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elects

BOARD OF DIRECTORS

appoints

PRESIDENT (CEO)

VP FOR VP FOR VP FOR VP FOR

MARKETING FINANCE PRODUCTION ADMINISTRATION

Figure 1: Illustration of the Corporate Organization Structure

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Shareholders: The shareholders elect the Board of Directors (BOD). Each share
held is equal to one voting right. Since the BOD is elected by the shareholders,
their responsibility is to carry out the objectives of the shareholders otherwise; they
would not have been elected in that position
Board of Directors: The board of directors is the highest policy making body in a
corporation. The board’s primary responsibility is to ensure that the corporation is
operating to serve the best interest of the stockholders.
President (Chief Executive Officer): The roles of a president in a corporation

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may vary from one company to another. The President carries out the decision
making for all functions; it would be difficult for him/her to do this alone. The
president cannot manage the company on his own, especially when the
corporation has become too big. To assist him are the vice presidents of different
functional areas: finance, marketing, production and administration.
VP for Marketing: The following are among the responsibilities of VP for

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Marketing
- Formulating marketing strategies and plans.
- Directing and coordinating company sales.
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- Performing market and competitor analysis.
- Analyzing and evaluating the effectiveness and cost of marketing methods
applied.
- Conducting or directing research that will allow the companies identify new
marketing opportunities, e.g. variants of the existing products/services already
offered in the market.
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- Promoting good relationships with customers and distributors. (Cayanan, 2015)
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• VP for Production: The following are among the responsibilities of VP for

Production:
- Ensuring production meets customer demands.
- Identifying production technology/process that minimizes production cost and
make the company cost competitive.
- Coming up with a production plan that maximizes the utilization of the company’s
production facilities.
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- Identifying adequate and cheap raw material suppliers. (Cayanan, 2015)

• VP for Administration: The following are among the responsibilities of VP for
Administration:
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- Coordinating the functions of administration, finance, and marketing

departments.
- Assisting other departments in hiring employees.
- Providing assistance in payroll preparation, payment of vendors, and collection of
receivables.
- Determining the location and the maximum amount of office space needed by
the company. Identifying means, processes, or systems that will minimize the
operating costs of the company. (Cayanan, 2015)
• VP for Finance
-Financing Decisions
-Investing Decisions
-Operating Decisions
-Dividend Policies
The people who work on VP for Finance are controller, internal auditor and
treasurer.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

DAY 3

D.3 ENGAGEMENT
a. What is more?
Activity No. 4 “Role of financial management in the business”
Directions: Identify if the activity in the transaction requires a financing decision,
investing decision or operating decision of a firm. Write your answer in your

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answer sheets.
The following are activities involved in chicken egg laying business or poultry farm
which starts from chicken laying pen construction to disposal of eggs.

Transaction Decisions

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1. Mang Andres is an Overseas Filipino Worker
(OFW) who came home for good. For five (5) years
of working in Saudi he was able to save P 150,000
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to start a business at his own
2. He constructed chicken laying pen good for ten
(100) chicken and spent a total amount of P
50,000.
3. He bought ten (100) chicken from the market
amounting to P 25,000
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4. After 5 months he borrowed money from the bank
for the delivery van.
5. He also spent P 30,000 for the water tank for the
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ready water supply of the chicken

MY SCORE:
/5

Activity No. 5: Overall goal of financial management

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Direction: Study the problem. Compute the stockholders wealth using the formula
below and try to answers the guided questions in your answer sheet.
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Formula:
Market value of shareholders’ equity = Market price per share of stock x Number of
shares outstanding

Case 1
Assume that Elsa bought 10 shares of Jollibee Food Corporation at Php 2,810.00
each on November 27, 2019. This brings her investments to Php 28,100.00

Guided Question:
1. What happens to the value of her investment if the price goes up to Php2,900.00
per share? Does Elsa earn profit? Why?
________________________________________________________________

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Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

2. What happens to the value of his investment if it goes down to Php 2,300.00 per
share? Does Maria earn profit? Why?
________________________________________________________________

MY SCORE:
/10

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b. What I can Do?
Activity 6 : “I can make financing Decision”
Directions: Based on the Philippine Stock of Exchange website “ www.pse.com.ph
listed below are the historical prices of the following stocks for the last 30 days
trading.

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1. PLDT Php 1,377.00 - Php 1,389.00
2. Globe Telecom Php 2,014.00 - Php 2,200.00
3. Jollibee Food Corp. Php 131.00 - Php 137.50
4. San Miguel Corporation
5. Aboitiz Power
AN Php
Php
99.00 - Php
24.75 - Php
98.90
25.20
Guided Question:
1. Which of the five stocks decrease its value; compute the market value of
shareholders’ equity, if you will buy shares of 100?
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_______________________________________________________________
2. Which of the five stocks will give shareholder’s wealth? Why?
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________________________________________________________________

MY SCORE:
/10

Activity 7: “Factors that Influence Market Price”

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Directions: Identify the item below that influence market price falls under
Controllable by Management and Uncontrollable External Factors. Write your
___________1.The company ABC has a good liquidity and reasonable leverage
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position.
___________2.Competent managers may have any of the following attributes: 1)
visionary 2) decisive 3) people-oriented, 4) inspiring, 5) innovative, 6)
respected and 7) experienced/seasoned manager.
___________3.In 2019, GDP growth rate decreased but remained high, reaching
5.9% according to IMF estimates.
___________4.Political Stability and Absence of Violence/Terrorism: Estimate in
Philippines was reported at --0.88496 in 2019
___________5. Company ABC is profitable and generated positive cash flows.

MY SCORE:
/5

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

c. What other enrichment activities can I engage in?

To maximize value, firms whether sole proprietorship, partnership and corporation
must develop products that consumers want, produce the products efficiently, sell
them at competitive prices, and observe laws relating to corporate behavior. Firms
should be socially responsible to different individuals involved.

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Activity 8: “Firm can be socially responsible”

Directions: Complete the sentences with the stakeholders in the box to make the
firm socially responsible.

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Community Employees Suppliers
Regulatory Agencies Employers Creditors
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1. The interest of the _____________ has to be considered in managing a
company.
2. Paying ____________ and ____________ on time is a good business practices
that will improve relationships with these parties.
3. Compliance with the requirements of __________________ also ensures that
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more smooth operations of business.
4. Supporting the _________ where the company operates like hiring the
employees with in the place and help some civic activities.
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5. _____________ should receive dividends from a corporation as returns on their

investments in form of cash or other properties.
MY SCORE:
/5

DAY 4
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D.4 ASSIMILATION
a. What I have Learned?
Activity 9: “I found out”
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Directions: Enumeration. Give what is asked in the item below. Write your answer
in your answer sheet.
Item Answer
1. Give the (2) goals of financial 1.
management 2.
2. Give the (3) roles of financial 3.
management 4
5.
3. Give the (5) individual involved 6.
7.
8.
9
10.

MY SCORE:
/10
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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

b. Assessment
Activity 10: “Recognizing the role of financial management”
Directions: Read the case study and answer the guided question. Write your idea and
analysis in your answer sheet.
Case 1
Suppose the following Income Statements and Cash Flow Statements of companies A, B

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and C were presented to you. As Chief Financial Officer you are required to make an
analysis and recommendation on which company is more attractive to invest. The
President of JFC Company asks you to answer the following questions:

Guided Question

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1. What can you say on about the income statement and cash flows statement of
Company A, B, C? AN
_________________________________________________________________
2. Which do you think is a more attractive company to invest? Why?
_________________________________________________________________
3. What do you think is the role of financial management based on the Case 1?
_________________________________________________________________
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Company A
Income Statement Cash Flows Statement
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Sales Php100,000.00 Collection from Customers Php 0.00

Less: Cost Php 50,000.00 Less: Payments of Expenses Php 50,000.00
Profits Php 50,000.00 Net Cash Flow (Php50,000.00)
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Company B
Income Statement Cash Flows Statement
Sales Php 100,000.00 Collection from Customers Php 100,000.00
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Less: Cost Php150,000.00 Less: Payments of Expenses Php 50,000.00

Profits (Php 50,000.00) Net Cash Flow Php 50,000.00

Company C
Income Statement Cash Flows Statement
Sales Php 100,000.00 Collection from Customers Php 100,000.00
Less: Cost Php 70,000.00 Less: Payments of Expenses Php 70,000.00
Profits Php 30,000.00 Net Cash Flow Php 30,000.00

MY SCORE:
/15

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

E. Guide Questions
Activity 11: “Question and Answer”
Directions: Respond to the following guide questions. Write the answer in your answer

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sheet.
1. Why shareholder wealth maximization should be the overriding objective of
management?
__________________________________________________________

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2. Why is it important for the firm to act socially responsible to different individual
involved in organization? AN
__________________________________________________________

F. Rubrics
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Category Points
The student did not follow directions. (minus 2)
The worksheet was completed as instructed. (plus 8)
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The worksheet was partially completed. (plus 2)

No Activity (no points)

G. Reflection
Learners will write on their notebooks or journals their insights about the lesson.
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I understand that_____________________.
I realized that _______________________
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H. References

Books
Arthur S. Cayanan, ,.et.al. Business Finance . Rex Book Store. pp. 1-3
Department of Education. Teaching Guide in Senior High School. pp. 1-31
Eugene F Brigham and oel F. Houston, Fundamental of Financial Management. 15th
edition, 2018 pp 1-20

Electronic Sources
https://www.tes.com/teaching-resource/budgeting-activities-6185782#
https://www.eslprintables.com/vocabulary_worksheets/business_english/business_vo
cabulary/Business_Vocabulary_1_395150/

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Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

http://www.ddegjust.ac.in/studymaterial/bba/bba-205.pdf
https://www.pdfdrive.com/fundamentals-of-financial-management-van-horne-13th-
edition-e28727448.html
http://www.csun.edu/~zz1802/Finance%20303/Web-Stuff/Lecture-Notes-Mid1.pdf
https://www.wallstreetmojo.com/wealth-maximization-vs-profit-maximization/
https://ph.investing.com/equities/phi-long-dis-t
https://www.google.com/search?client=firefod&q=macroeconomic+conditions+of+phil

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ippines
https://tradingeconomics.com/philippines/political-stability-and-absence-of-violence-
terrorism-estimate-wb-data.html

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H. Answer Key

What I Know

1. BUDGETING
AN
Whats In
Whats In:

My Daily Your
1. stockholder Budget Jenny’s Recommende
2. INVESTING 2. Board of Directors Worksheet Budget d Budget
3. FINANCING DECISION 3. President (Chief
4. SOURCE OF FUND Executive Officer): Allowance Php 100.00 Php 100.00
5. DIVIDEND DECISION 4. President (Chief
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6. FINANCIAL Less:
Executive Officer)
Expenses
MANAGEMENT 5. VP for Marketing
7. FINANCE 6. VP for Administration 1.Travel
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8. PROFIT 7. VP for finance (CFO) Expense Php 20.00

9. PROFIT 8. Controller
MAXIMAZATION 9. Internal auditor 2.Mobile
10. STOCK HOLDER Load Php 10.00
10. Treasurer
WEALTH
3. Meal Php 35.00
MAXIMIZATION
4.Vegies Php 15.00
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5.Biscuits Php 8.00

6.Merienda Php 10.00

What is more:
Total Cash
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1.Investing Decision Balance: Php 2.00

2.Operating Decision

3.Operating Decision

4.Financing Decision

5.Investing Decision

Activity No. 5

1. Increase to Php 900,

Yes.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

.What I can Do- Activity No. 6

Old New
Price Price Increase Decrease
1. PLDT 1,377.00 1,389.00 1,200.00
2. Globe Telecom 2,014.00 2,200.00 18,600.00
3. Jollibee Food Corp. 131.00 137.50 650.00

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4. San Miguel 99.00 98.90 -10.00
Corporation
5. Aboitiz Power 24.75 25.20 45.00

1. San Miguel Corp

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2. PLDT, Globe Telecom, Jollibee Food Corp., Aboitiz Power

Activity No. 7 AN Assessment

1. Controllable by • Company A is profitable but generated negative cash

Management flows which resulted from the uncollected accounts
2. Controllable by receivable of PHP100,000.
Management Without adequate cash inflows to meet its obligations, the
3. Uncontrollable External company will face liquidity problems, regardless of its level
Factors of profits.
4. Uncontrollable External • Company B on the other hand has a positive cash flow but
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Factors is unprofitable. This is a result of the company’s delay in
5. Controllable by payment of its costs.
Management Accordingly, the Company will soon have to pay the
BA

remaining PHP100,000 liability and its cash will no longer be

sufficient. Again, without
Activity No. 8
adequate cash inflows to meet its obligations, the company
1. employee will face liquidity problems.
2. creditors and suppliers • Company C is profitable and has a positive cash flow.
3. regulatory agencies Based on the information provided, Company C seems to be
4. community the best
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5. employers
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