Name: BERT A BAUDENG FINAL ACTIVITIES

Engagement (Page 2)
The possibility of someone getting hurt would be a big concern for Cheryl and Grayson because in their
planned line of business, accidents are always possible. In a business ownership, there is what we called the
unlimited liability principle wherein the owner/s will be personally liable to it. Most businesses manages this
kind of problems in the future by obtaining insurance policies to cover such incidents.
The owners should be taking into consideration first their vision, mission, goals and objective for the
business to have a guide in choosing what form of business organization they will adopt. Also, they should
consider the technical requirements of the business, the clients and all other factors. This is because the
form of ownership will guarantee the viability and/ or feasibility of the business in some aspects.
APPLICATION 01 (PAGE 13)
1. There is a need to list all the equipment and supplies needed to start a business to make sure that all
the details on the required materials, equipment and supplies are properly and carefully identified.
Such as the brand, the quantity, the purpose of each, the cost, the estimated useful life and the
supplier of such resources. This will also aid in proposing or planning for the budgetary
requirements.
2. It is important to obtain price quotes from several vendors before selecting a vendor to ensure that
you are getting the best possible, and reasonable price or deal for anything you need. There are
instances that you tend to rush on buying something then suddenly found out that the same item is
on sale from other stores. In doing this, I should ask potential vendors on their quote price, what
made their product more acceptable than the rest, and also, to frankly offer terms and conditions on
the deal, most especially if you are looking for a regular supplier.
3. The issues a business owner should consider when purchasing the inventory for the business are the
customer services and quality products from the supplier. Also, the terms of delivery should be clear
and determined as well. Policies on returns and discounts should be identified and well disclosed
also.
ASSESSMENT 01 (PAGE 13)
1. The ideal trade area for card and gift shop would be in Abatan, Bauko where my mother is renting.
There would be other possible areas for such business like in Poblacion, and in Tadian but Abatan,
Bauko is the meeting point of people coming from different municipalities and it would be more
strategic to situate a card and gift shop in that place. There are no competing card and/or gift shops
in any of these locations so far but there are these existing business establishments that sells items
ideally for occasions like Valentine’s Day, Christmas and New Year’s Day. These stores are the
grocery stores. The items they sell on holidays are just for holidays only. I think they have chosen
these locations because it is always crowded on Mondays, Wednesdays, Fridays and Saturdays.
2.

3.
P A R K I N G
Exit

TOOLS Equipment Supplies

Main Laboratory

Proceed here
immediately if
it is your turn
already

Pay Before
you
Confirmation proceed to
of the
CASHIER

Appointment Laboratory
and receiving or Parking
of Parking Tab Bay
RECEIVING/ APPOINTMENT BAY

Entrance
 Equipment
3.
Air Compressor
Jack, Jack Stands and Pole Jack
Oil Drain and Oil Caddy
Battery Charger and Jumper
Tool Set
Vehicle Lifts
Strut Compressor
Wheel Alignment Machine

APPLICATION 02 (PAGE 38)

1. The challenges I might encounter if I get equity financing from friends/ or family members is the
level of accountability and worry is lower because I would have the possibility to not worry that
much on how to pay it since they are my close friends or family member. Also, there is a possibility
that they would keep nagging me to pay my debts the moment they see my business doing well. It
could possibly ruin a good relationship because of the possibility on default risks.

2. Secured loan is easier to get than unsecured loan because secured loan comes with collateral which
assures the lender, either individual or financial institution that they will have something to hold
against the loan. This means that a secured loan has lower risk associated to it compared to the
unsecured loan.

3. It would be best to prepare both a best-case and worst-case pro forma cash flow statement to come
up with a definite plan or strategies on how to mitigate the impacts of each. If the worst-case pro
forma cash flow is prepared and properly analyzed, the entrepreneur would make a way or
strategies or plans to avoid it. The possible reasons for a not so good cash flow will be identified and
ways to handle it will be determined as well.

4. The owner should use the extra cash to innovate and improve more their services, and the ambiance
of the business area. It will be used to invest more with attracting more clients and promoting the
quality services of the business. This will help in ensuring that the business will continue to grow for
the next coming months and even years.

5. Economic conditions should be considered because these are factors that has great impact to the
operations of the business. Like for example, the inflation rate, in creating a business plan, the
possible switches or movements on the projections should be foreseen s caused by these to make
sure that a closer approximate value will be presented in the plan in consideration of all economic
conditions.

6. The difference of a journal and a ledger is that the journal is the book of the original entries where
all the accounting transactions are analyzed and recorded as the journal entries, while the ledger is
the extension of the journal where journal entries are posted or also called as the permanent and
final book of accounts. Also, the act of recording transactions in the journal is called journalizing
while in the ledger is called posting.

7. Perpetual inventory method differs from periodic inventory method on how it recognizes the cost of
goods sold an inventory in which it uses an occasional physical count to measure the level of
inventory and the cost of goods sold while the perpetual system keeps track of inventory balances
continuously, with updates made automatically whenever a product is received or sold.

8. A purchasing plan is essential to good inventory management to properly track and identify the
remaining merchandises, the needed merchandises to fill in the already sold ones and to come up
 with a definite numbers on how many to purchase more, what to purchase, and where to purchase
such merchandises. It is also used to tract the ending inventory physical counts of the merchandises
at the end of the day to properly monitor the in and out of the goods.
9. The benefits of using the perpetual method are, for quick valuation of closing inventories; By
introducing a system of perpetual inventory control, a regular check on the receipt and issue of
materials and stores is undertaken; Helpful in formulating proper purchase policies; With the help of
a properly planned system of perpetual inventory control, wastages, leakages and thefts of materials
are at once brought to light and causes for such discrepancies can be known without delay; The
system ensures an effective control over the storing, issuing and using of materials which leads to
avoidance of unnecessary locking up of capital in stock; and, Beneficial in ascertaining efficiency of
stores organization.
For periodic inventory system on the other hand is that there is no need to have separate
accounting for raw materials, work in progress, and finished goods inventory. All that is recorded are
purchases. Only when the accounting period ends, and a physical inventory count is made, does the
value of purchases need to be known. In some respects this simplifies the accounting system and
helps to reduce inventory tracking costs.

10. No, because identifying the turnover rate of the inventories will help me analyze its level of sales in a
certain period. It will also allow me to determine the strength and weaknesses of the product, and
the marketing strategies. This being said, I will know how to deal with it by of course strategizing
plans on how to cope up with anything that’s making the inventory turn-over very low.

11. Constructing a cash budget using an electronic spreadsheet make the financial report more helpful
because it is easier to tract any input errors, and it would be easier to convert the data into a more
understandable report presentation. This also provides a better organization of the reports, for
storage, and proper presentation.

12. The benefit of preparing the income statement monthly instead of once a year is the easier tracking
of income regularly and immediate actions to be done to deal with any risks associated to it to make
sure that the financial position, performance and standing of the business is maintained.

13. For me, it would be profit goals because sales is still a raw number that isn’t being deducted yet with
all the costs of goods sold, operating expenses and other expenses. Which means to say that if you
look more importantly on sales, you might get attracted and relaxed to having higher one without
taking into considerations the factors that might decrease the numbers you have on hand. Profit is a
net value, might not be 100% in the form of cash, but at least you are certain that costs are
deducted to it already.
ASSESSMENT 002 (PAGE 39)
1. “ Ma’am this is extracted from our business plan”
Dapeng Auto Services
Statement of Cash Flow
As of the Year Ended December 2021
(in Php)

Operating Activities
Net Income 397, 644
Add (Deduct): Adjustments
Depreciation Expense 13, 426
Cash from Operating Expenses 411, 070

Investing Activities
Purchase of Equipment 191, 800
Cash from Investing Activities (191, 800)

Financing Activities
Initial investment 2, 000, 000
Less: Withdrawal (160, 000)
Cash from Investing Activities 1, 840, 000

Increase or Decrease in Cash 2, 059, 270

Cash and Cash Equivalents, Beg. 0
Cash and Cash Equivalents, End 2, 059, 270

Dapeng Auto Services

Statement of Changes in Partners’ Equity
For the Year Ended December 2021
(in Php)
Partners’ Capital Beginning 2, 000, 000
Add: Net Income 397, 644
Total 2, 397, 644
Less: Drawing 160, 000
Partners’ Capital End 2, 237, 644

BERT BAUDENG
Partner’s Capital Beginning 1, 000, 000
Add: Net Income 198, 822
Less Drawings 80, 000
Partner’s Capital End 1, 118, 822

ELEAZER SILOG
Partner’s Capital Beginning 1, 000, 000
Add: Net Income 198, 822
Less Drawings 80, 000
Partner’s Capital End 1, 118, 822
 Dapeng Auto Services
Statement of Financial Position
As of the Year Ended December 2021
(in Php)

ASSETS
Current Assets
Cash 2, 059, 270

Non-Current Assets
Property, Plant and Equipment 191, 800
Less: Accumulated Depreciation ( 13, 426)
Total Non-Current Assets 178, 374

Total Assets 2, 237, 644

LIABILITIES AND PARTNERS’ EQUITY

Partner’s Capital End 2, 237, 644

Dapeng Auto Services

Income Statement
For the Year Ended December 2021
(in Php)
Service Income 930, 320
Less: Operating Expenses
Rent Expenses 120, 000
Advertising Expenses 1, 500
Taxes and Licenses 4, 486
Salaries Expenses 363, 264
Depreciation Expense 13, 426
Supplies Expense 30, 000 532, 676
Net Income 397, 644

2.
YODER’S BOOKSTORE
Income Statement
For the Period Ended ___
(In Php)

Sales 5, 000.00
Less: Cost of Goods Sold (3, 000.00)
Gross Profit 2, 000.00
Less: Operating Expenses (800.00)
Income before Tax 1, 200.00
Less: Taxes 400.00)
Net Income 800.00
 3.
BERGAN STEIN SPORTSWEAR
Statement of Financial Position
As of the Period Ended _______

ASSETS
Current Assets $13, 000.00
Non-Current Assets
Fixed Assets 25, 000.00
Total Assets $38, 000.00

Current Liabilities $7, 000.00

Non-Current Liabilities 14, 000.00
Total Liabilities $21, 000.00

Owner’s Equity (Total Assets – Total Liabilities) $17, 000.00

Total Liabilities and Owner’s Capital $38, 000.00

4.

Customer Amount 0-30 days 31-60 days Over 60 days Totals

6, 500 2, 300 3, 100 1, 100 6, 500
Percent of 100% 35.39 47.69 16.92 100%
Total

5. Total Assets = cash on Bank : P13, 000.00; Inventory: P57, 000.00; Accounts Receivable: P2, 000;
Fixed Assets: P22, 000.00
= P94, 000.00
Total Liabilities = Accounts Payable: P25, 000; Loans, Payable: P50, 000.00
= P75, 000.00
Owner’s Equity = (Total Assets – Total Liabilities)
= P19, 000.00