BUSINESS

FINANCE
Manuel L. Hermosa, EdD
Master Teacher II
– Heavenly Father,
– We thank you for giving us another life,
We thank you for another beautiful morning.
As we go on through our lessons today,
May you make us instruments to do good things.
Please enlighten our minds,
Give us strength to participate in our task.
– This we asked in the mighty name of Jesus, our Lord
and savior.
– Amen.
 If you have QUESTIONS after
the class, please DIAL …..

- 0917-840-6752 (GLOBE & TM)

- 0925 -729-6138 (SUN, Smart & TNT))
- manuel.hermosa@deped.gov.ph
REVIEW OF THE PAST LESSON:
BUDGET PREPARATION AND PROJECTED FINANCIAL
STATEMENTS
Write True if the statement is correct and False if the statement is incorrect. Write your
answers on a separate sheet of paper.

__1. Sales is the most important account in forecasting financing

statement.
__2. There should be information on income taxes and how much
financing cost a company will have to forecast net income.
__3. The cash budget displays the expected cash receipts and
disbursements for an accounting period.
__4. Sales budget is composed of the variable and fixed costs needed
to run the operations of the business.
__5. Operating budget provides estimated amount of money based on
the volume of products that a company proposes to sell in a future
period.
REVIEW OF THE PAST LESSON:
BUDGET PREPARATION AND PROJECTED FINANCIAL
STATEMENTS
Write True if the statement is correct and False if the statement is incorrect. Write your
answers on a separate sheet of paper.
T
__1. Sales is the most important account in forecasting financing
statement.
T
__2. There should be information on income taxes and how much
financing cost a company will have to forecast net income.
__3. The cash budget displays the expected cash receipts and
disbursements
T for an accounting period.
__4. Sales budget is composed of the variable and fixed costs needed
to
F run the operations of the business.
__5. Operating budget provides estimated amount of money based on
T volume of products that a company proposes to sell in a future
the
period.
REVIEW OF THE PAST LESSON:
BUDGET PREPARATION AND PROJECTED FINANCIAL
STATEMENTS
REVIEW OF THE PAST LESSON:
BUDGET PREPARATION AND PROJECTED FINANCIAL
STATEMENTS
REVIEW OF THE PAST LESSON:
BUDGET PREPARATION AND PROJECTED FINANCIAL
STATEMENTS
TOPIC FOR THE SESSION:

 WORKING
CAPITAL
MANAGEMENT
PRETEST
Directions: Choose the correct answer from the choices. Write your answers on a separate
sheet of paper.

1. It is designed to ensure that a company operates efficiently by monitoring and using its
current assets and liabilities to the best effect.
A. working capital management B. cash management
C. inventory management D. receivable management
2. These refer to cash, accounts receivable, inventories, and prepaid
expenses.
A. current assets B. noncurrent assets
C. current liabilities D. owner’s equity
3. It is the difference between current assets and current liabilities.
A. permanent working capital B. net working capital
C. temporary working capital D. contractual working capital
4. In this working capital financing policy, the permanent working
capital requirements should be financed by long-term sources while
temporary working capital requirements should be financed by short-
term sources of financing.
A. maturity-matching B. conservative
C. aggressive D. modern
5. It is the time to collect cash from the sale of the inventory.
A. days of inventory B. days of payable
C. days of receivable D. none of the above
 LESSONS OBJECTIVES FOR
Q3,WEEK 6
After this session, MELC of the lessons will be
delivered and the students are expected to:
explain tools in managing cash, receivables, and
inventory (ABM_BF12-IIIc-d12) and describe
concepts and tools in working capital
management.
Working Capital Financing Policies
1. Maturity-matching working capital financing policy
2. Aggressive working capital financing policy
3. Conservative working capital financing policy

Permanent or fixed working capital

Temporary working capital
Temporary working capital = Net working capital
– permanent working capital.
Long-term sources of financing
Short-term sources
 SUMMARY:
 WORKSHEET : ASSIGNMENT
 LESSONS ASSIGNMENT # 6

1. Read the Module 6/ Materials;

2. Answer the questions; and
3. Follow asynchronous assigned
task for this week.
 Again, If you have QUESTIONS
after the class, please DIAL …..

- 0917-840-6752 (GLOBE only)

- 0925 -729-6138 (SUN only)
- manuel.hermosa@deped.gov.ph