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Business Finance Q3 W3-4
Business Finance Q3 W3-4
DE GUZMAN
11- AYALA
BUSINESS FINANCE
Quarter 3 – Week 3-4
What I Have Learned (Written Work):
PART 1: UNDERSTAND
(Claim – Evidence – Reasoning)
Making a personal cash budget can help you balance your income, savings, and outgoings. It helps
you achieve your financial goals by directing your spending. Your budget will assist you to keep the
funds you've already set aside. Based on the given situation, the items included in the preparation of a
personal cash budget are cash receipts and cash disbursements. Cash receipts include allowances, cash
gifts, scholarship money, and salary. Cash disbursement, on the other hand, covers the expenses such as
food, personal supplies, school supplies, transportation, and clothing.
Cash Receipts:
Allowance 3,000
Cash Gifts 750
Scholarship Money 0
Salary 960
Total Income 4,710
Cash Disbursement:
Food 1,150
Personal Supplies Expense 1,050
School Supplies Expense 880
Transportation 500
Clothing 900
Total Expenses 4,480
Total Short/ Extra Cash 230
Moreover, personal financial statements have four main purposes: to report your current financial
position; measure your progress toward financial goals; maintain information about your financial
activities; and provide data for preparing tax forms or applying for credit. However, it is not proper to
have a zero or deficit result in the budget you are preparing because a budget deficit means expenditure
exceeds income. A budget deficit would result when a person's or family's actual expenses are greater
than planned expenses. When an individual or household is in deficit, the phrase means they overspend.
The government covers the deficit with debt, primarily through the issuance of debt securities. Likewise,
when individuals spend more than their income, they have to borrow, for example, from banks. The
continued deficit from year to year results in the accumulation of debt. That ultimately increases the
default risk.
PART 2: DO
(Performance Task: GRASP Approach)
[A] Company
Production Budget
For January, February, March, April, May
Months Total
January February March April May
Planned Sales 2,000 2,200 2,500 2,800 3,000 12,500
Desired Ending Inventory 100 100 100 100 100 100
Total Needs 2,100 2,300 2,600 2,900 3,100 13,000
Less: Beginning Inventory 50 100 100 100 100 450
Units to be Produced 2,050 2,200 2,500 2,800 3,000 12,550