Module 7

ENGAGE
Activity 1
Directions: Create your own ending.
1. After reading the synopsis of the novel, complete the table by creating your own ending of the
story of each character.
Character End Story

1. Simoun At the end of the novel, Simoun find Padre

Florentino and confesses his entire story to
him. He even hands the priest all his riches
before finally passing away

2. Maria Clara At the end of the story, Maria Clara will take
down the abusers and kill them.
3. Padre Florentino Padre Florentino makes a break for it with the
treasure that Simoun leaves with him.

Activity 2
Directions: Briefly answer the following.
1. What does filibustero mean?
Filibustero means to a person who bravely fight for the independence of the country. He
want to pursue for what he strive to achieve.
2. Why did Rizal dedicate El Filibusterismo to Gomburza?
Rizal dedicate El Filibusterismo to Gomburza because he hates the Spaniards
executing the innocent Gomburza brothers. The Gomburza brothers awakens the anger,
and bitterness of Filipinos which Rizal made a tribute for them.
Activity 3
Directions: Discuss the following thoroughly.
1. Choose a character in the novel. What does he/she symbolize in relation to Philippine
society today?
One character in the novel is Don Custodio, he is a high official in the government
that gathers many positions but doesn’t have any qualifications. He symbolizes the
injustice system of the government today wherein government officials are self seeking
who wants to be a politician could freely have the positions although he’s not qualified to
have it. A person that has lots of connections to maintain a position in the government
because of self interests.
2. After reading Rizal’s two novels, how will you appraise Rizal as a novelist?
 After reading Rizal’s two novels, I could see Rizal as a brave yet smart national
hero. It is because he wrote to he two novels in order to show the bad regulations of the
Spaniards to Filipinos although it may take his life. Also, through writing those novels,
that shows how smart Rizal is because he used only a pen to show his anger towards
the Spaniards instead of swords. Rizal, being a novelist is very useful, because he uses
it as a way to his nationalism.
Enrich
Directions: Discuss briefly but concise.
1. What is the relevance of the novel El Filibusterismo to the following:
a. Education and Language
El Filibusterismo is relevant to the Education and Language. As seen in the novel
education is mostly focused in which some of the characters are describes as a
student. The body of the story tells also that one of the characters which is
Basilio fight to the establishment of a school that will allow to learn about the
languages. Basilio believes that through education, it could help improve the lives
of fellow Filipinos. Education is a way of achieve the independence and could
successfully save the country.
b. On the Filipino Youth
El Filibusterismo is very significant to the Filipino Youth because it encourages
and motivates Filipinos to keep education the center of life. Rizal wrote the El
Filibusterismo for the purpose of awakening the Filipino Youth to be a future of
the country in which as a whole they became united to call for reformation from
the government. Rizal gives importance to the youth as a hope of the country.
Evaluate
Directions: Make a comprehensive discussion of the following.
1. In terms of the themes tackled in the novels, compare and contrast Noli Me Tangere and
El Filibusterismo.
A Noli Me Tangere novel shawn the hopeful and romantic atmosphere while El
Filibusterismo could be very dark . The Noli Me Tangere seemed to expose the bad
actions committed by Spanish friars and it also focuses more on church. While, the El
Filibusterismo tries to reach a social reforms and revolution.
2. Choose the three most important characters in the novel and explain why you consider
them as such?
The three most important characters in the novel are Simoun, Basilio and Isagani
are considered as the important character in the novel. I consider Simoun as the important
character for it is the main character in the novel, he’s role being violent to start a revolt.
Basilio for he’s the one who wants to make reforms through instilling education as the
important aspect in the life of youth. And Isagani for he’s possessed a good character which
empowers everyone that being poor is not a hindrance but what matters is that how you love
the things around you.
Reflect
Directions: In your own words, provide what is being asked.
1. Write a three- paragraph essay( instead of a novel) about the Philippine society at
present with a unique title.
Are You Human?
Corruption is an act of dishonesty to those who had powers. It is considered as an illegal
activity of the government officials who wants to use his position in the government to gain
powers and money. Philippines is known for having a corrupt government officials. There are
some issues and claims that some government official commit the same criminal acts. But, is the
government corruption, inhumane?
There are several issues that the main concerned are the government officials. Government
officials should be the one to lead the people in the right path. Showing a good ethical conduct
towards it’s people. But, still they used to do the illegal acts, that is why there are so many
politicians who wants to gain a position. All of it is because of their self interests. Instead of
serving the people, they served their own. The corruptions of the government until now won’t be
resolved because they are pretentious. It is an inhumane acts because they seek it for their own,
the power and the wealth of the nation. That is why our country still not develop, because self
centered officials are still leading the country.
So, to the government officials who are practicing their ethical conduct. They should remove
those who are not deserving to lead the people. They should act on it now because the slow the
more wealth the self seeking government officials could get from the funds for the people. That
problem is very important for it is the only reason that Philippines won’t progress.
Activity 2
Directions: Read “ To the young women of Malolos” and discuss the following.
1. Rizal’s thought on the following during his time:
a. Women
Rizal sees women as flowers who had lack of perfume and fruits who are
lack of sap. Which means that women in his time had lack of freedom to do what
they wanted to do in their life. To fight for their rights as women, because at that
time women are being abused by the Spaniards and being treated as slaves.
Women lives in the darkness during Rizal’s time that’s why Rizal wrote the novel.
b. Government
Rizal thought that the government are crowded with liberal ideas. They
accept gifts or offers with a conditions. Government officials are practicing an
injustice system to the Filipinos. This leads to anger among Filipinos.
c. Religious Teachings( do not forget to enumerate the false teachings of the
church).
Rizal thought of the religious teachings of Spanish as immoral . The friars
used the religion to do their cruel acts towards Filipinos. The rejection of the
spiritual authority of the friars – not all of the priests in the country embodied the
true spirit of Christ and His Church.Faith is not merely reciting prayers and
wearing religious pictures. It is living the real Christian way with good morals and
manners.
2. Why did Rizal commend the Young Women of Malolos?
Rizal commend the Young Women of Malolos to awaken them that their role as a
women are very important. He wants to open the minds of women that they should learn
to protect their dignity and honor. They should educate their selves and be brave to fight
for what are their rights. He also emphasize the duties and responsibilities of Filipinos
and the good quality that women should possess.
Activity 3
Directions: Provide what is being asked.
1. Choose at least one of the essays provided above and write a short summary based on
what you have understood.
To the Young Women of Malolos
Rizal view the women of Malolos as something that has a vital role. He sees the
women as equal to the man and lives asa significant person because women could also
provide. Women are acknowledge to be weak, but for Rizal, women could do something
that men couldn't do. As a whole, Rizal wrote the essay to open the minds of women,
that theycan do better
ENRICH
Directions: Discuss the following concisely.
1. How can you consider Indolence as one of the causes of poverty?
 I consider Indolence as one of the causes of poverty because to be successful in life
it needs actions. You have to work on things for you to achieve something. That is why
poverty. By letting Indolence stays in you and if you want to be a habit, then it will be the
cause of poverty.
2. How vital is woman’s role in a man’s life based on the letter of Rizal to the young women
of Malolos?
A woman’s role is very vital in a man’s life for they are the one's to comfort a man.
They play a role of being a good wife to a man. Man look for women to lean in times of
burdens. Women played a role of encouraging a man to lift them up and encourage
them.

EVALUATE
Directions: Make a comprehensive discussion of the following.
1. Why do Spaniards consider Filipinos as indolent?
I think Spaniards consider Filipinos as indolent because Filipinos, that time didn't
enter a formal education since Spaniards stop them. Filipinos lacks of formal education
will make Spaniards think that they possess the bad character of being lazy. And
Filipinos always follows the Spaniards which made them rhin that Filipinos are indolent.
But only the Spaniards cause the Indolence of Filipinos. Filipinos are deprived with their
rights by the Spaniards
2. Who is the first to influence the consciousness of a man?
The first to influence the consciousness of man is a woman. Like from, the Adam
and Eve story. Because of Eve the consciousness of Adam awakes .
REFLECT
Directions: In your own words, provide what is being asked.
1. What principle of Rizal in his two essays provided above that you might want to apply
in your life?
Ignorance is servitude , because as a man thinks, so he is; a man who does not
think for himself and allowed himself to be guided by the thought of another is like the
beast led by a halter.
That kind of principle is I want to apply in my life because I am one of those
person's that could be easily manipulate by the people around me. I easily do things
which are not being think carefully. So, I want to remove those kind of aspect in my life
because I want to grow up freely without being under controlled.
 Module 9
ENGAGE
Activity 1
Directions: Read Rizal's essay, The Philippines A Century Hence.Then, make a
worksheet like the one below and fill it out. Copy one quotation from the essay that has
caught your attention under the Quotation heading. Under the Comments section, take
into consideration the following questions: (a) What does the quotation remind you of?
(b) Do you agree of disagree why? (c) What are your reflection on the quotation? Under
the questions, write down the questions that come to your mind while reading the
quotation from Rizal's essay.
Quotation Comment Question
Yes, I agree with that, it is Is it really necessary to read
like judging a person. Before the destiny of people?
"In order to read the destiny you make judgements to that
of a people, it is necessary to person, you should know first
open the book of its past." his/her story. You cannot
judge him if you never know
his past.
Activity 2
Directions: Briefly discuss the following question.
1. What were the causes of miseries of the Filipinos based on the essay?
The Causes of the miseries of the Filipinos based on the essay are:
Spain’s implementation of military her policies - due to such laws, the
Philippine’s population reduced dramatically. Poverty became worse than ever
and farmlands were left to die.
Disappearance of Filipino’s indigenous culture - when the Spaniards
colonized the Philippines bringing along with them their sword and cross, it
affected the Philippine native culture.
2.Enumerate at least two of Rizal’s prediction of the future Philippines that came
true.
√ “The Philippines will one day declare herself independent”.
√ “The Philippines will defend with indescribable ardor the liberty she bought at the cost of
so much blood and sacrifice”.
Activity 3
Directions: Discuss the following concisely.
1. What is the importance of writing/ studying a biography?
It is very important to write or study a biography for you to inspire other and be
inspired. A biography helps you to know the real life stories of others. It teaches us real
and practical life lessons.
ENRICH
Directions: Provide what is being asked.
 1. Write a three- paragraph essay on what you think will happen to the Philippines 5
years from now . Organize your arguments clearly and use evidence whenever
necessary.

What Will Happen To the Philippines 5 Years from Now

The Philippines in the future will became rich in culture. Although, we are
in the modern days, our culture remains.That is what made us a Filipino. We give
our culture an importance . That is why there are some tourists who wants to
explore our country. Aside from the tourist spots we had, we are also being
recognized as a citizen of the Philippines that are rich in good conduct.
Furthermore , the Philippines in the future will be colonized. Especially to
the youths who are addicted to the creations of others specifically the K-Pop wave
we slowly adapt what others countries had. Filipinos are fond of other countries.
That's why other countries will also love our country for Philippines are known to
be appreciative.
And most of all, soon the Philippines will become progressive. Because
of the new inventions of technology, Philippines will be more productive that
leads to growth. The life of Filipinos will be easier. Technologies became useful in
the livelihood of Filipinos.The creativity of Filipinos will continue to increase and
more inventions may be made. Filipinos made Philippines rich because of hard
work, and creativity.

EVALUATE
Directions: Make a comprehensive discussion of the following.
1. Why did the Spaniards could not prevent the progress of the Filipinos?
Spaniards couldn't prevent the progress of Filipinos because Filipinos are
hardworking.They have determination and love to discover and create things which may
lead to unstoppable progress.
2. How could they possibly prevent it?
No one could possibly prevent someone's progress.

REFLECT
Directions: In your own words, provide what is being asked.
1. Write an essay about the insights you learn from this subject.
There are so many things I learned from this which specifically the Life and
Works of Rizal. It provides me awareness of those things that I didn't know. This subject
really helps to know more about our national hero. There are life teachings that are
applicable to all. Another significance this subject provides are the contributions of Rizal.
What made him considered as our National Hero.
ENGAGE
Example Making.
Give 2 examples for each defective contract:
1. Void Contracts
1) Bert made a contract with JD to sell his apartment for P500,000 if his brother
returns home within one year. His brother dies in that year and the contract
becomes impossible, making it void.
2) MJ agreed to JM in making a personalized ring for adequate consideration. After
3 says, MJ days in a road accident. As the contract becomes impossible to
perform. It becomes a void contract.
2. Voidable Contracts
1) Jade agrees to sell and deliver 10 sacks of rice to Jude for Rs.15000 within two
weeks. But Jade does not supply the rice within the prescribed time, making the
contract voidable.
2) A criminal force Mr.Sy to sign an agreement for Sale of his Condominiums to
Mr.Dy, otherwise threatens to kill his family.
3. Rescissible Contracts
1) Mrs. Grey is the guardian of Shanel (ward). Mrs.Grey sells the vacant lot which
is a property of Shanel worth 50 million for only 35 million. The contract of sale
can be rescinded because the lesion is more than one-fourth. Shanel can rescind
the sale by proper action in court upon reaching the age of majority.
2) Daniela made a donation of a parcel of land to Maurice. Before the date of the
donation, Daniela had contracted several debts. With the donation to
Maurice ,the remaining property of Daniela is not sufficient to pay all her debts.
The donation can be rescinded because the alienation is presumed in fraud of
creditors.
4. Unenforceable Contracts
1) Mr. Suico, an employer forces his employee Craige to sign a contract that
prevents him from taking sick leave, it would be considered unenforceable.
2) A 15 years old Faye, without a supervision from his parents. She signed a
contract with Mrs.Dawn. Under this circumstances , the contract is considered
unenforceable for it lacks of capacity.
ENRICH
Multiple Choice
1. D. 11. D. 21. C
2. D. 12. D. 22. D
3. D. 13. C. 23. C
4. D 14. C. 24. C
5. D. 15. C. 25. C
6. D. 16. C
7. D. 17. C
8. D. 18. C
9. D. 19. C
10. D. 20. C
EVALUATE
Information campaign
Directions:
1. Make an infographics showing the defective contracts.
2. Each member should post the infographics in their FB wall.
3. Screenshot your posts and make sure that there is already atleast 5 reactions, 5
comments and 5 shares of your post to warrant being rated for this activity.
4. Submit the hardcopy of your comic strip and screenshot.
5. Your illustration will be graded through this rubric.
Note : The Screenshot and Soft Copy are in the next page.
Reflect
Complete the following statements:
1. Learning the law in contracts is a very important way to easily identify what law is
suitable to it, and to clearly understood the requisites of a contract.
2. I can apply my learnings through sharing it to the people around me on how to
proper determine the laws on Contracts.
3. I would like to recommend to improve the course to clearly explained the articles of
laws by citing enough examples.
Module 9
ENGAGE
Case Analysis. Answer according to what is asked. Justify your answers accordingly. Use the
language of the law in justifying your answers.
1. Ben contracts to buy a1941 four door Cadillac convertible from Seth for P7,500,000.
Seth, having found a Third Party who will pay P8,500,000 for the car, refuses to sell now
to Ben. What is Ben’s remedy?
The remedy of the buyer is that he will be awarded of non compensatory
damages because if the bad conduct by the seller and his actual loss of the contract.
2. Assume Third Party aid the P8,500,000 and Seth was ordered to sell to Benr. What is
Third Party’s remedy?
The remedy of the third party is that the Third part will get a liquidated damages
not only for the breach but also for the sum of damages he experience.
3. Professor Smith contracts to teach business law at La Salle University for the academic
year. After the first term is over, she quits. Can LSU get an order of specific performance
or an injunction requiring professor Smith to return for the Second Term?
LSU can get an order of Injunction because there is a breach of contract. Since
Professor Smith does not finished the term, LSU will have to act on it by prohibiting
Professor Smith to meter another contract.
4. 4. Now suppose that the reason Professor Smith quit work at LSU is because she got a
better job at Central University, fifteen miles away . Can LSU get an injunction
prohibiting her from teaching at Central University?
Yes, LSU can get an injunction because, still Professor Smith breach the contract
and committing a bad conduct to the contracting parties.
ENRICH
Discussion. Answer each question concisely.
1. What is the difference between a legal remedy and an equitable remedy?
Legal remedies are ones that allow the party not in breach to recover money,
whereas equitable remedies involve resolution through non-monetary solutions.
2. What types of remedies are there, and what purposes does each serve?
The fundamental purpose of remedies in noncriminal cases is not to punish the
breaching party but—if possible—to put the no breaching party in the position he or she
would have been in had there been no breach. Or, as is said, the purpose is to make the
nonbreaching party whole.
3. What must be shown if liquidated damages are not allowed?
Liquidated damages are presented in certain legal contracts as an estimate of
otherwise intangible or hard-to-define losses to one of the parties. It is a provision that
allows for the payment of a specified sum should one of the parties be in breach of
contract.
4. Under what circumstances punitive damages may be allowed?
Punitive damages are awarded to punish and deter reprehensible defamations.
Punitive damages can only be awarded if there is sufficient proof of actual malice.

EVALUATE
 Case Digest Analysis. Read the following case Digest and answers the questions after
the digest.

1. Is there an legitimate interest protected by the penalty? Cite it.

In Parking Eye the Court accepted that there was a legitimate interest in
keeping the car park available for shoppers and, separately, in Parking Eye’s ability to make a
profit from the fines. In El Makdessi, the legitimate interest was the party’s commercial interests,
which in this case were difficult to value.
2. Is the amount exorbitant in comparison to other similar contracts/ breaches of this type?
Reason out.
The £85 charge was neither extravagant nor unconscionable having regard to
the
level of charges imposed by local authorities for overstaying in car parks on public land.
The Court of Appeal agreed and so do we. It is higher than the penalty that a motorist
would have had to pay for overstaying in an on-street parking space or a local authority
car park. But a local authority would not necessarily allow two hours of free parking, and
in any event the difference is not substantial. The charge is less than the maximum
above which members of the BPA must justify their charges under their code of practice.
The charge is prominently displayed in large letters at the entrance to the car park and at
frequent intervals within it. The mere fact that many motorists regularly use the car park
knowing of the charge is some evidence of its reasonableness. They are not constrained
to use this car park as opposed to other parking facilities provided by local authorities,
Network Rail, commercial car park contractors or other private landowners. They must
regard the risk of having to pay £85 for overstaying as an acceptable price for the
convenience of parking there. The observations of Lord Browne-Wilkinson in Workers
Bank at p 580 referred to in para 35 above are in point. While not necessarily conclusive,
the fact that ParkingEye’s payment structure in its car parks (free for two hours and then
a relatively substantial sum for overstaying) and the actual level of charge for
overstaying (£85) are common in the UK provides support for the proposition that the
charge in question is not a penalty. No other evidence was furnished by Mr Beavis to
show that the charge was excessive.
3. Is the protection of the interest proportionate? Justify your answer.
Applying the new test to the cases before them, the Supreme Court held
(Lord Toulson dissenting in respect of ParkingEye) that the provisions in question in both El
Makdessi and ParkingEye were not penal (thereby overturning the Court of Appeal’s
judgment in El Makdessi). This was because Cavendish and ParkingEye both had
‘legitimate interests’ in enforcing the primary obligations, with which the detriment imposed
by the clauses was proportionate.
No, Mr Bloch QC for Mr El Makdessi resists these submissions. In his
submission, the doctrine fulfils a tried and well-established role, there is no impetus, let
alone one based on any research or review, for its abolition or restriction and it is, on
principle and authority, applicable to the types of clause in issue in this case. He submits
that the law governing penalties enables and requires account to be taken of the interests
intended to be protected by the relevant clause – a proposition that Miss Smith was in reply
at first inclined to dispute, but after questioning and reflection later herself endorsed. But
 protection of such interests is, in Mr Bloch’s submission, subject to the over-riding control
that it must not be extravagant, oppressive or manifestly excessive. In his submission the
present clauses are precisely that, since their effect is in the case of clause 5.1 to deprive
Mr El Makdessi of part of the agreed consideration, and to do so in a way which bears no
resemblance to any loss which his breach may have caused Cavendish or the Group. On
the contrary, the smaller the loss it has caused, the larger the penalty effect, and vice versa.
As to clause 5.6, its effect is to give Cavendish a right on any default by Mr El Makdessi to
force him to part with his remaining shareholding, at a price likely to be well below its actual
value, again in circumstances where the difference in value in no way reflects any loss
which the default may have caused Cavendish or the Group, and where the smaller the loss
caused to the Group, the larger the difference in value of which Mr El Makdessi is deprived.
Reflect
Share your insight on the following quote:
“ The damage done in one year can sometimes take ten or twenty years to repair”.
For me, the quote meant to say that if you damage something, it cannot be normalized
again like it was to be. In application to life, it is like trusting a person. If that person broke your
trust , this means the trust you was once gave to him won’t never go back again. It is like a
glass,once it broke , it cannot go back to it’s normal pieces. Because a damage will create an
impact to a person especially when that effect of damages done is very bad. It takes long years
to be healed. To repair the damages, it depends on how it impacts a thing.
ENGAGE
Activity 1 ( 25 points)
Directions: Answer the following question concisely.
1. Why might market conditions cause a firm’s actual capital structure to vary from it’s
target level?
Market conditions cause a firm’s actual capital structure because it influences to
the selection of the source of financing. When the market conditions is bad, investors
are much afraid to invest in the market because of the higher level of risk they incur.
If the market conditions is good, more investors are willing to invest in the business
firms.
2. Why does business risk vary from industry to industry?
Business risk vary from industry to industry because debts are always present.
With the use of debt financing the more business risks occur. Business risks
determines a firms capital structure.
3. How does operating leverage affect business risk?
Operating leverage affects business risk to the extent to which costs are fixed. If
a high percentage of a firm’s operating costs are fixed and hence do not decline
when demand declines, this increases the company’s business risk.
4. How would an increase in corporate taxes tend to affect an average firm’s capital
structure? What about an increase in the personal tax rate?
Taxes affect the use of interest-paying debt. Increases in corporate tax rates
lead to increases in leverage; increases in personal taxes on interest income
decrease leverage; and increases in personal taxes on dividend income increase
leverage. This leads do a changes in the firm’s capital structure.
5. How does the firm’s internal condition affects it’s actual capital structure?
The firm’s internal condition affect it’s capital structure. See for an instance ,if the
firm succeed in completing the project’s, possibly there’s a higher return of
investments in the future. With that, business used more on equity financing rather
than the use of debt because of the new earnings received.
Activity 2( 35 points)
Directions: Explain your answers for each it.
How would each of the following changes tend to affect aggregate (that is, average for all
corporations) payout ratios, other things held constant? Explain your answers.
1. An increase in the personal tax rate
An increase in the personal income tax rate would make investors less attractive to it
which leads to the reduction of the aggregate payout ratio.
2. A liberalization of depreciation for federal income tax purposes – that is, faster tax write-
offs
When depreciation allowances will raise, cash flows also would rise. With cash flows,
payout ratios would tend to rise.
3. A rise in interest rates
 An increase in interest rates will increases the interest earned by the firm’s on
investments. Therefore, it will ultimately increases payout ratio.
4. An increase in corporate profits
A permanent increase in profits would probably lead to an increase in dividends, but not
necessarily to an increase in the payout ratio. If the aggregate profit increase was only a
cyclical (increase, then the dividend payout ratio might actually fall because firms do not
generally raise dividends in response to a short-run profit increase.
5. A decline in investment opportunities
If investment opportunities for firms declined while cash flows remained relatively
constant, an increase would be expected in the dividend payout ratio.
6. Permission for corporations to deduct dividends for tax purposes as they now deduct
interest charges
An amount of dividend will be reduced by taxes and therefore, the payout ratios of the
firm’s will fall.
7. A change in the Tax Code so that realized and unrealized capital gains in any year are
taxes at the same rate as dividends
The changes in Tax code would create capital gains less attractive and then results to a
rise within the payout ratios.

Reflect
Activity 4
Directions: Answer the questions below.
1. How would you describe a blessing?
A blessing for me is something such as a gift or a favor given that bless a person . A
blessing is something that is heartily given.
2. Is it an obligation to share your blessings? Why or why not?
For me, it is not an obligation to share your blessing because based on its own
definition ,the blessing is given through heart. It only depends to a person if she/he will
share his/her blessings.
ENGAGE
Activity 1 (15 points)
Directions: Describe the following terms. ( Copy- and-pasting your answers will
automatically invalidate your answers.)
1. Inventory conversion period
An inventory conversion period is a an overall time spent in
converting the total inventories by dividing it to the company’s sales.
2.Average collection period
Average collection period is an average number of days of days that a
company collects it’s accounts receivables. It will be get through dividing the annual
account’s receivable of the company and the annual Net sales they gain.
3.Payable deferral period
A payable deferral period is an average time period it takes the company to
pay their accounts payable as part of their liabilities. It is calculated by total amount of
accounts payable divide by its Cost of Goods Sold per day.
Activity 2(10 points)
Directions: Answer the following questions:
1. How would a reduction in the Cash Conversion Cycle increase profitability?
A reduction in the Cash Conversion Cycle increase profitability by having a quick
inventory turnover. The more inventory of goods a company could sell ,the more they
are profitable since the sales will be receive immediately that are being conveyed
into cash
So it is very important to manage your inventory to gain more profits.
2. What are the actions a firm can take to shorten it’s CCC?
The actions a company or firm should take in order to shorten it’s CCC is
through giving discounts to those who are early to pay for their payables.REFLECT
Activity 4(10 points)
Directions: Answer the questions below truthfully.
1. Ensuring a healthy working capital aids the firm’s to be successful in the long run. As
natural person’s, taking care of ourselves today helps us to have a successful future. As
a student during this pandemic, how do you take good care of your well being?
I can say that being an offline learner is a great challenge for me.Especially
that I have many works to do here in home, I couldn’t focus in my answering my activities.
There were so many destructions when learning in home. In fact, I couldn’t take care of my
self because I am clouded with negativities. I always felt that what ifs thinking, I am
struggling in making my tasks because I don’t have anyone else to lean if I find difficulties in
my lessons. I only depends on my self which makes it tough for me. I always have mental
breakdowns leads to what I am right now. This new way of learning does really change, I
became independent but I couldn’t share what I felt inside. Since the first semester has
finally ends, I hope to positively develop my well being in the coming semester.
 ENGAGE
Activity 1 ( 25 points)
Directions: Answer the following questions concisely.
1. Should a marketing major be interested in forecasting? Explain your answer.
Yes , a marketing major will be interested in forecasting because they also
track sales ,how much sales a company could get in selling goods or services.
They also forecast if the market they entered is feasible or not. Forecasting is
well applied to marketing majors also.
2. Would financial forecasting be relevant for such people when they graduate and
enter the work force? Explain.
Yes, financial forecasting is relevant to those who graduate and enter the
work force because they also forecast their financial needs in the future.
Financial forecasting is always applied in our day to day living because it
influences our financial decisions.
Activity 2( 20 points)
Directions: Explain your answers for each item.
1. Assume that an average firm in the office supply business has a 6% profit margin, a
40% debt/assets ratio, a total assets turnover of 2 times, and a dividend payout ratio of
40%. Is it true that if such a firm is to have any sales growth (g > 0), it will be forced to
borrow or to sell common stock (that is, it will need some non-spontaneous external
capital even if g is very small)? Explain.(15 points)
It is false because when company makes profit, it means that it experiences growth , so
we will determine the firm’s growth rate:
Firm's growth rate = Return On Assets (ROA) x (1 - dividends paid)
since the return on asset was not given so we will calculate it first:
ROA = net profit x asset turnover
= 6% x 2 = 12%
Now we can finally calculate the firm’s growth rate by:
Firm’s growth rate = (ROA) x (1 - dividends paid)
= 12% x (1 - 40%)
= 12% x 0.6 = 0.072 or 7.2%
Therefore; the firm can manage to support an annual growth rate of up to 7.2% before it
needs to borrow money or issue new stocks.
2. Would you agree that computerized corporate planning models were a fad during
the 1990s but that because of a need for flexibility in corporate planning, they are
no longer used by most firms? Explain.(5 points)
I disagree because Computerized Corporate Planning Models helps big in
flexibility for those who used it. Using this planning models, the calculations could
be done faster and the product results are very much accurate for it doesn’t
involve with human error.

EVALUATE
Activity 3(50 points)
Directions: Answer the following problems:

1. PRO FORMA INCOME STATEMENT: Samsan Tech recently reported the

following 2019 income statement (in millions):

Sales P700
Operating cost including depreciation 500
EBIT P200
Interest. 40
EBT P160
Taxes (40%) 64
Net Income P 96
Dividends P 32
Additional to retained earning P 64

This year the company is forecasting a 25% increase in sales; and it expects that
its year-end operating cost, including depreciation, will equal 70% of sales.
Austin’s tax rate, interest expense, and dividend payout ratio are all expected to
remain constant.
a. What is Austin’s projected 2020 net income?
Net income 2020 = Sales - Operating cost - Interest expenses
- Taxes

EBIT = P875 (120% of P700) - $612.50 - P40 = P222.50

Net income = P222.50 - P89 (40% tax) = P133.5
b. What is the expected growth rate in Austin’s dividends

Since dividend payout ratio is same 33.33% (P32 / P96 in the year 2019), current
year dividend is P44.49 (33.3333% of P133.5).

Hence growth in dividend = (P44.49 - P32) / P32 = 39.02%

 2. EXCESS CAPACITY JiPyeong industries has P5 billion in sales and P1.7
billion in fixed assets. Currently, the company's fixed assets are operating at
90% of capacity.
Given: Sales= P 5,000,000,000
Fixed Assets= P1,700,000,000
Fixed assets are operated at 90% capacity

a) What level of sales would Walter Industries have obtained if it had been
operating at full capacity? (10 points)
Full Capacity Sales= P5,000,000,000/0.90= P5,555,555,556

b) What is Walter's Target fixed assets/Sales ratio?( 10 points)

Target FA/Sales Ratio= P1,700,000,000/P5,555,555,556= 30.6%

c) If Walter's sales increase 12%, how large of an increase in fixed assets

will the company need to meet its Target fixed assets/Sales ratio?(10
points)
Sales Increase 12%; DFA=?

S= P5,000,000,000 x 1.12= P5,600,000,000

Therefore, there’s no increase in Fixed Assets up to P5,555,555,556.

DFA= 0.306( P5,600,000,000- P 5,555,555,556)

= 0.306( P44,444,444)
DFA = P13,599,999.90 or P13,600,000
REFLECT
Activity 4
Directions: Answer the questions below.
1. How would you describe a blessing?
I described a blessing as something that is heartily given without being
commanded.
2. Is it an obligation to share your blessings? Why or why not?
It is not an obligation to share your blessing because it only depends on
a person if he/she will share his/her blessings. No one will force you to share
your blessings , it’s up to your choices. Sometimes, we are thinking that when
we have a blessing, we should share it but blessing is not a thing to be
obliged to give.