Name: Abelgas, Thryxia Coreen V.

Instructor: Ms. Pamela Agatha Bugay

Strand & Section: Stem 116

Date: Oct 11,2023

RESEARCH PROPOSAL FINANCIAL STATEMENT

I.INTRODUCTION

Financial statement are reports of statement that provide the details of the entities
financial
information, including assets, liabilities, incomes and expenses, shareholders’ contributions, cash
flow and the other related information during the period. Financial statements are uses in
strategic planning and forecast. You can monitor interim and annual financial statements to see
how your business is performing, spot important trends and compare your actual finances with
targets, budgets and forecast.
An income statements shows the profitability of your business. It details how much
money
your business earned and spent. The income statement is also sometimes referred to as a profit-
loss statements or an earnings statement. Preparing financial statements for a family allows them
to take a holistic view of their finances, make informed decisions, and work toward achieving
their financial goals. It promotes financial responsibility, stability, and adaptability to changing
circumstances.
Financial statements are essential financial information sources, requiring the application
of basic accounting principles for accuracy and consistency, which can be prepared using three
principles. Financial statements provide stakeholders with a company’s financial health, aiding
in determining eligibility for business loans and ensuring transparency and accountability.

II. OBJECTIVE

Financial objectives are the goal of my family: to know and see what to focus on when

spending money and to see if I can save for important things.

III. PURPOSE

The purpose of preparing financial statements for my family is to provide a clear idea for

our financial situation. It helps my family to have a better understanding of our income, expenses
and assets.

IV. REVIEW OF RELATED LITERATURE

Annual financial statements are prepared by firms to monitor financial health, operational
performance, and cash flows, providing valuable financial information for informed decision-
making in business operations.

Based on the study of Howard Van Auken and Shawn Carraher (2013). recurrence or

frequent preparation of financial statements was directly associated and connected with whether
the financial statements were utilized or used on decision making and conversely associated with
the confidence of the owner in the reliability of their financial statements. It was stated in the
study that financial statements contain significant financial information which is a useful guide
in making decisions. Frequent use of financial statements is really a key factor for making
decisions financially by the firms and how the owners keep track of its financial information by
having the capability and potential skills to rely on it with such confidence and courage.
Therefore, the study concluded that owners which have confidence with how reliable their
financial statements are and prepare their statements frequently or more often, really understand
the significance and importance of financial information.
Furthermore, Howard Van Auken and Shawn Carraher (2013) also concluded to their
study

that frequency of financial statement preparation was negatively associated with gender.
Female-owned firms were less common use and prepared financial statements for making
decisions. Thus, in a male-owned firms, it is more common to use. Gender was previously
associated with the decision which involved financial information with the small firms.
Meanwhile, in some firms in small communities, financial statements are more frequently
prepared by women owners. Findings show that business owners need accurate and current
financial statements as a guide for them to make decisions, but there is also a reason for some
owners who are not too confident on how their financial statements are being prepared who insist
to waste their time on such information that is unreliable. Proper training is a must for owners to
ensure their understanding of financial statements which can be a key for making better decisions
for the firm.
Javad Izadi Zadeh Darjezi and Ehsan Khansa lar (2013) also concluded to their study that

financial statements that are being reported quarterly replaced favorable and well-timed
spontaneous disclosures and managers reporting their financial statements and their earnings
frequently in the year can make such an unreasonable decision making for their firm. It is also
stated that reporting financial information more frequently can also influence supplementary
information compilation enterprise by the users and the way of preparing a report more
frequently can make a valuable financial report.
According to Smith (2011), the accuracy and timeliness of financial information is
necessary and required, on the other hand, adequate management also requires a valid
assessment of the firm's financial statements. It indicates that firms' overall potential factors
would affect their financial information positively and it's a better way for them to prepare
financial statements which can be made more often because of more precise and preferred
information. The use of the financial statement effectively, preferably current data, is such an
important thing to understand and to consider by the owners on making decisions.
 Susan Ward (2008), emphasis that financial analysis using ratios between key values help
investors cope with the massive financial stat amount of numbers in company financial
statements. For example, they can compute the percentage of net profit a company is generating
on the funds it has deployed. All the other things remaining the same, a company that earns a
higher percentage of profit compared to other companies is a better investment option.

V. DISCUSSION

The Family of Abelgas income and expenses are going to show in the statement below.

MONTHLY EXPENSES
MONTHTS FOOD WATER ELECTRIC GROCERY TRANSPO PAG-ASA TUITION HOME OTHERS
BILLS BILLS CREDIT (clothing,etc.)
APRIL 18,000 500 1,212 3000 3000 1800 0 0 5000

MAY 18,000 500 2,046 3000 3000 1800 0 0 5000

JUNE 18,000 500 687 3000 3000 1800 0 0 5000

JULY 18,000 493 500 3000 3000 1800 0 0 5000

AUGOST 18,000 423 495 3000 3000 1800 0 0 5000

SEPTEMBER 18,000 500 479 3000 3000 1800 1088 2360 5000

TOTAL 108,000 2,916 5,419 18,000 18,000 10,800 1,088 2,360 30,000

MONTHLY INCOME

NAME EMPLOYMENT AGE SALARY TOTAL

STATUS (6months)
EVA EMPLOYED 45 11,500 69,000
ABELGAS
TRISTAN EMPLOYED 44 30,000 180,000
LINDSEY
ABELGAS
TOTAL 249,000

VI. STATEMENT OF THE PROBLEM

1. How will you finance with members of your household?

2. Do you know how much you save or spend each month?
3. What is a top priority in April to September?
4. How does it affect the financial status?
5. How do you survive your debts in April to September?

VII. RECOMENDATION

1. To manage finances, negotiate better rates, switch providers, or limit energy usage. List
household spending, rate it based on importance, involve the entire family in budgeting,
track expenses, and build an emergency fund to protect against unforeseen circumstances.
 2. Using add and subtract the income and expenses.

Given:

Expenses ?

Income: P 249000

 Food = 108,000 (in 6 months)

 Water Bills = 2,916 (in 6 months)
 Electric Bills = 5,419 (in 6 months)
 Grocery = 18,000 (in 6 months)
 Transpo = 18,000 (in 6 months)
 Pag-asa = 10,800 (in 6 months)
 Tuition = 1,088 (in 1 months)
 Home credit = 2,360 (in 1 months)
 Others (shopping, etc.) = 30,000(in 6 months)

Solution:

= 108,000 + 2916 + 5419 + 18000 + 18000 + 10800 + 1088 + 2360 + 30000

= 196,583.00

The Abelgas family total expenses in April to September which is in 6 months is P148,583.

The Income is P 249000 subtract the total of Expenses.

= 249,000.00 - 196,583

= 52,417.00

The Abelgas family save in 6 months are P 52,417.00

3. To save money in order for us to provide our basic needs and to pay our debt.
4. This can be caused by the fact that sometimes there are emergencies in the family; for
example, there will be an emergency fee at school, or when every member of the family
gets sick, or there is a lack of money.
5. Using Debt consolidation, budgeting, credit monitoring, and avoiding money worries can
help reduce DTI ratio, save for a higher down payment, and improve credit card scores.

VIII.CONCLUSION

Our conclusion is that to save our income, we must know how to avoid or manage every
important expenditure of money, and we should know the important things or priorities to pay to
avoid excessive expenses and to be able to help us in case there is an emergency for the family or
urgent important expenses.