Business Finance

4th Monthly Exam

Answer/solve the following questions/problems. Show solutions to items requiring computation.

Answer on separate sheets.

1. Suggest one short-term financial plan and one long-term financial plan for a new salon (for men and
women) business. Also explain how these plans are to be achieved. (10 pts.)

2. Why is there a need for the tactical plan to align to the strategic plan? (5 pts.)

3. On the chart is the performance data of Bumble Bubble Laundry Shop for its first month of operations
in January. What financial contingency plan can you suggest? (10 pts.)

4. Why do we need to consider the external factors in forecasting sales? (5 pts.)

5. Dracule Mihawk, a financial analyst for Legends Bar and Cafe, has prepared the following sales and
cash disbursement estimates for the period of January through June of the current year.

- 85% of sales per month are paid in cash; 15% are collected after one month
- all disbursements are on a cash basis
- maintain minimum cash balance P75,000
- the beginning cash balance in March is P30,000
Prepare a cash budget for the months of March, April, May, June and July.