COMMIT YOUR

WORK TO THE LORD,

AND YOUR PLANS
WILL SUCCEED.

Proverbs 16:3

Add a Footer 1
FINANCIAL
PLANNING
Ana Flor Cerbo
PLANNING?
D e fi n e t h e w o r d . .
 The act or process of making
or carrying out plan;
specifi cally the establishment
of goals, policies and
procedures for social
economic unit
 MOTIVATION:
As an
individual,
what is your
plans in life?

Add a Footer 5
Click icon to add picture

In a ¼ sheet of
p a p e r. C r e a t e a
vision, mission
and goal
statement to
achieve that
plan

Add a Footer 6
 FINANCIAL PLANNING
•Is applied in both public finance and
business finance.

•Does not exist and operate as an

independent activity in the
organization.

•It is one of the important elements

comprising the general plan of the
business organization
Add a Footer 7
 FINANCIAL PLANNING
•Must be firmly anchored on the
thrust of the business.

•Financial planners maintains strong

coordination with the corporate level
regarding the general plan and with
the different functional areas on the
specific plans and theses plans in
monetary values.
Add a Footer 8
 BUSINESS VISION
• Conveys the ultimate goal of the organization

• It outlines the final map of what the business will be

and where the business is going.

• The guiding star for all the plans, policies and strategies
of the business.

• Long-term in character

“ To p r o v i d e p r e m i e r r u r a l
bank in Mindanao”

Add a Footer 9
 BUSINESS MISSION
• Sets the current business activities and outlines what
the business is for.

• Defines as well the nature of the business.

• Lists relevant undertakings and carries out or

implements various projects for the realization of the
vision.
“A rural bank providing complete
and low-cost agricultural
banking service to famers across
Mindanao”

Add a Footer 10
 BUSINESS GOAL
• States where all the activities and operation of the
business are directed.

• Refined version of the company’s vision.

• If the vision presents the desired end—state of the

business in its broadest term, the goal sets in a more
specific medium the general end of the business.

“ To e x p a n d t h e r u r a l b a n k i n g
a c ti v i ti e s i n v a r i o u s p a r t s o f
Mindanao”

Add a Footer 11
 BUSINESS OBJECTIVE
• Is a specific and short-term.

• Present in a very clear terms the actions that

must be taken by the business in order to
meet its goals.

• Refined version of the mission statement.

“to open two branches every
year”

Add a Footer 12
VISION STATEMENT

To be the leading Financing

Company in the Philippines
 MISSION
STATEMENTS

Everybody
Happy

Staffs
Shoppers
Stockholders
Suppliers
Society
Click icon to add picture

Add a Footer 15
Click icon to add picture

Add a Footer 16
 ACTIVITY ½ YELLOWPAD

Think of a business that you want to

pursue and provide its vision, mission,
goal and objectives.

Add a Footer 17
 QUIZ

Add a Footer 18
 THANK YOU
For listening

Add a Footer 19
 FINANCIAL PLANNING
PROCESS
Ana Flor Cerbo

Add a Footer 20
 Forecast setting on sales, cost
Step 1 expenses, and capital expenditure

Goals and Objective

Vision and Mission
Preparation of the projected
Step 2 financial statements

Step 3 Analysis and evaluation of the

projected financial statements

Step 4 Review and evaluation of the

projected financial plan

Add a Footer 21
 THE FORECAST
•Firs step in financial
planning

•Making of assumptions and

projections

Add a Footer 22
 THE SALES FORECAST
•Is the initial step in making
projection

•Must start with sales forecast

when making a financial
projection

•Marketing department’s
responsibility
Add a Footer 23
 TOOLS IN
FORECASTING SALES
•Simple moving average

•Weighted moving average

•Arithmetic straight line

•Arithmetic geometric curve

•High-low point method

•Method of least square

Add a Footer 24
 JENNY TRADING REPRESENTS THE FOLLOWING
SALES FIGURES IN TERMS OF UNITS
2014 22,800
2015 24,500
2016 28,750
Percentage of
2017 32,900 Increase = (current year – base year)/
base year x 100
2018 36,350

Add a Footer 25
 LETS DETERMINE THE PROJECTED SALES IN
YEAR 2019
PERCENTAGE OF INCREASE
2014 -
2015 7.46%
2016 17.35%
2017 14.43%
2018 10.49%
TOTAL 49.73%
DIVIDED BY 4
AVERAGE CHANGE PERCENT 12.43%

Add a Footer 26
 BASED ON THE AVERAGE CHANGE PERCENTAGE 12.43%, WE CAN
NOW GET THE PROJECTED SALES FOR 2019

36, 350 X 12.43% = 4,518

36, 350 + 4,518 = 40,868 SALES

Add a Footer 27
 PRODUCTION
SCHEDULE
•Before preparing the production
schedule, the projected sales figure
must be finalized.

•Highly dependent o the sales forecast

•Every changes in sales forecast, the

production schedule is like wise
changed.

Add a Footer 28
 PRODUCTION SCHEDULE
REFLECTS THE FOLLOWING
INFORMATION

•Number of units and the costs

of raw materials

•Direct labor costs

•Manufacturing overhead costs

Add a Footer 29
 NUMBERS OF UNITS
IN JENNY TRADING THERE ARE THREE TYPES OF MATERIALS

MATERIAL AA 2 UNITS
MATERIAL BB 3 UNITS
MATERIAL CC 5 UNITS

HOW MANY UNITS WE NEED TO REACH THE PROJECTED SALES OF

40,868 UNITS?

Add a Footer 30
 COST OR RAW MATERIALS
THE PRICE OF THREE MATERIALS ARE AS FOLLOWS

MATERIAL AA P1.50
MATERIAL BB P 1.25
MATERIAL CC P1.75

HOW MUCH IS THE COST OR RAW MATERIAL TO PRODUCE 40,868

UNITS?

Add a Footer 31
 LABOR COST
JENNY TRADING NEEDS 25 WORKERS TO FINISH THE 40,868
PRODUCTS. BASED ON THE PAST PERFORMANCE, 3 HOURS IS
REQUIRED TO FINISH ONE PRODUCT. IN THIS CASE THE LABOR
RATE IS P8.00

HOW MUCH IS THE AMOUNT WE PAID TO WORKERS TO MAKE

40,868 PRODUCTS?

Add a Footer 32
 MANUFACTURING OVERHEAD COST

• Refers to the cost incurred in producing a product that cannot be

classified as direct materials and direct labor cost.
• Includes : salaries for supervisors, light and water, depreciation of
machinery, fuel and gas related to production, and indirect
materials.

Add a Footer 33
 QUIZ NEXT MEETING

Add a Footer 34
 THANK YOU
For listening

Add a Footer 35