Philippine Christian University – Manila

Graduate of School Business and Management

Master’s in Business Administration

In Partial Fulfillment of the Course Requirement in

FINANCIAL MANAGEMENT
Academic Year 2023-2024

Submitted to:
PROF. ARMANDO B. BO, CPA

Submitted By:

KATE IRISH MAE D. LAZARO

Student # 2022434282 | MBA-P

25 November 2023
 Philippine Christian University
Graduate School of Business & Management

Main Reference: Principles of Managerial Finance by: Cesar Saldana

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1. Time Value Analysis 3

Prob. 3 – A24 – Time Value uneven cash flows (excluded)

2. Financial Ratio Analysis 5

Prob. 5 – B6 – Reconstructing financial statement from ratios

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.

 Philippine Christian University
Graduate School of Business & Management

3. Working Capital Policy and Management 9

Prob. 9 – A11 – Role of Short-term bank loan

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.

 Philippine Christian University
Graduate School of Business & Management

4. Cash Management 10
Prob. 10 – B8 – Fund Generation and cash cycles

a.) Calculate the average cash operating cycle and annual cash turnover of the company.
b.) Estimate the average amount of cash tied up as working capital of the company.
52,000-20,000= 32,000
32,000/12 = 2,666/month (payable)
c.) How much cash can be generated from:
 The reduction in inventory?
 Cash Terms?
d.) Can Pinili generate sufficient cash to repay the loan?
e.) If so, can he repay the loan?

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.

 Philippine Christian University
Graduate School of Business & Management

Samal Tambo Craft Balance Sheet

 Cash/year – P52,000
 2 weeks inventory
 Bank Loan P20,000 (60days)
 Income P6,000 in 2 months
 Reduce 3 days inventory

5. Accounts Receivable Management 11

Prob. 11 – B14 – Using an Accounts Receivables Aging Schedule

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.

 Philippine Christian University
Graduate School of Business & Management

a.) What was the expected additional benefit of the new credit policy?
b.) What collection period should Samal Enterprises adopt under the new policy?

6. Inventory Management 12
Prob. 12 - B9 – Economic Order Quantity and Reorder Paint

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.

 Philippine Christian University
Graduate School of Business & Management

7. Financial Forecasting 13
Prob. 13 – A19 – Proforma balance sheet with choice of financing

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.

 Philippine Christian University
Graduate School of Business & Management

8. Cost and Profit Planning 14

Prob. 14 – A7 – Break-even sales with target income and taxes

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.

 Philippine Christian University
Graduate School of Business & Management

9. Capital Budgeting Analysis of Relevant Cash Flows 15

Prob. 15 – B17 – Cost savings replacements projects

a) Determine the investment cash flow of the proposal

b) Estimated the incremental cash flow of the proposal
c) What will be the periodic cash flow of the project

Student # 2022434282 | MBA-P | Lazaro, Kate Irish Mae D.