BUSINESS MATH

Four Financial Statements

1. Balance Sheet / Financial Position

• assets

• liabilities

• capital

2. Income Statement

• revenue or income

• expenses

– Gross Income (total revenue, WITHOUT deduction)

– Net Income (Revenue less Expense; R > E)

– Net Loss (E > R ; Expense is greater than Revenue)

3. Statement of Owner’s Equity

• capital and drawing in a CERTAIN PERIOD

4. Statement of Cash Flow

• Received cash; on-going operations

• Cash receipts and payments

ASSET

CURRENT ASSETS

1. Cash – A medium of exchange that is in currency form.

2. Account Receivable – Money owed by the customers or debtor acquired through service
rendered and goods purchased on accounts

3. Notes Receivable – debts endorsed through promissory notes.

FIXED ASSETS

Land

Buildings

Vehicles

Office/ Store Supplies

Office/Store equipment and machineries

Furniture and Fixtures

INTANGIBLE ASSETS

Franchise

Copyright

Trademarks

Patent

Software

LIABILITIES

• Unearned Revenue – an income collected by the business in advance whose product

or service is yet to be provided.

1. Current Liability

• Accounts Payable

• Notes Payable

• Salaries Payable

• Utilities Payable

• Interest Payable – Interests accumulated from debts

2. Long-term Liability

• Mortgage Payable

• Loan Payable

• Bonds Payable

CAPITAL

• Owner’s Capital – invested/investment

• Owner’s Drawing – account used for assets withdrawn by the owner for personal use.

REVENUE

• Sales

• Commissions

• Service Revenue

• Rent Income

• Interest income

EXPENSES

• Salaries Expense

• Utilities Expense

• Rent Expense

• Bookkeeping – recording all the transaction in a systematic manner

• Classifying – grouping similar and interrelated business transactions by posting it to the ledger

• Summarizing – preparing financial statements

• Journalizing – recording business transaction in a book of original entries called a journal

• Posting –transferring entries from journal to ledger.

• Adjusting entries are used to:

a. close the books

b. record accruals

c. correct errors

• Reminders:

– Pag column ang tinatanong, it’s either DEBIT or CREDIT lang

– Pag ang transaction nag end sa “on account or on credit” ang credit side ay Accounts

Payable pero pag wala, automatic ang credit side ay Cash

– Lahat ng pumasok DEBIT, lahat ng lumabas CREDIT

– I-analyze maigi ang transaction bago mag answer 

• Reminders:

– Pag gross sales, walang bawas ang pipiliin

– Pag net sales naman ibawas ang expenses

– Pag depreciation value, if given na yung value, iconvert ang percentage into decimal,

then multiply sa amount

– If per yearly or monthly ito ang formula;

total amount – depreciation value

time (months if needed)

• Reminders:

– Pag kukuha ng percentage, mauuna ang maliit na value sa mas malaking value,

kaylangan naka decimal muna then multiply sa 100 para maging whole number,

kapag dinivide mo at naka whole number agad, baliktarin mo yun pag divide dahil

baka nagkamali ka lang 

– Pag wala yung exact answer, hanapin ang pinaka malapit

BLESSING NOTES

• Statement cash flows, the information concerning the cash inflows and outflows

• Closing entries are made, in order to transfer net income/loss and owner's drawings to the

owner's capital account

• Trade companies – business to receive goods and services before paying

• example of external finance – Bank loan

• Capital gain – shareholder sells his shares for more than he paid

• point at which the level of sales of a business exactly equals its costs – Break-even point

• Current Assets-Current Liabilities – Working capital

• does not appear in a Balance Sheet – Depreciation Expense

• Net Income or Profit results from, revenues exceeding expenses

• Assets are normally recorded at – cost

• Requires 15 months of payment – Long-term liability

• Best applies to current asset – Accounts receivable

• Non-current assets – Properties and equipment

• Received in exchange for delivery of goods – Income

• Decreases in Owner’s equity – Expenses

• Resources owned – Assets

• Acquired assets through obligations – Liability

• Business owned will be due not to exceed a year – Current Asset

• Requires prompt payment – Current Liability

COMPUTATION

1. Jeff receives P2,500 from her parents as monthly allowance. He spends 3/5 for dormitory fee

and utilities, 1/5 for her other needs and saves the rest. How much does she save?

A. P1000

C. P850

B. P750

D. P500

3/ 5 + 1/5 = 4/5

2500 X 4/5 or 2500 / 5 = 500

500 X 4 = 2000

2500 – 2000 = 500

D. 500

2. Christine is a saleslady in Miniso Department Store. She received a salary of P 10,000 a month

plus a commission of 1% on all her sales. Last month, her total sales was P35,000. How much did she
earn for the month?

A. P 10,035.00

B. P 10,003.50

C. P 10,350.00

D. P 10,530.00

1 % / 100 = 0.01

35000 X 0.01 = 350

10000 + 350 = 10, 350

C. P 10,350.00

3. If a skirt marked down 25%, what will the purchase price be?

A. P25.00

B. 75% of its original price

C. 50% off

D. P75.00

B. 75% of its original price

4. Find the profit of Ronnel's water refilling business with revenue of ₱56,000,000 and costs

of ₱42,000,000

A. ₱14,000,000

B. ₱140,000

C. ₱1,400,000

D. ₱14,000

56,000,000 – 42,000,000

= 14,000,000

5. Niko's food stall has costs of ₱2,900. Her total food sales are ₱11,600. What percent of

her food sales do the food costs represent

A. 20%

B. 25%

C. 27%
D. 30%

2,900 / 11,600

= 0.25 X 100

= 25 %

6. Brea needs 250 cookies for a buffet. She will make oatmeal raisin, macaroons, and

chocolate chunk cookies. She wants 25% of the cookies to be oatmeal raisin and 15%

of the cookies to be macaroons. How many chocolate chunk cookies must Brea

bake?

A. 150

B. 125

C. 140

D. 100

25 % oatmeal

+ 15 % macaroons

40 %

100 % - 40 % = 60 %

250 (total cookies)

250 * 0.60

= 150

7. A customer places a special order through 480 Furniture Store. The list price in the

manufacturer's catalog is ₱1,600. 480 Furniture receives a 35% trade discount. What is the net

price for the furniture order?

A. ₱560

B. ₱1,535

C. ₱1,565

D. ₱1,040

Shortcut in getting net price in Trade Discount:

Subtract the given discount from 100% then multiply to the given amount

100% - 35% = 65%

1,600 x 0.65 = 1,040

8. Ron's Manufacturing offers discounts on most of its products. What is the trade

discount rate on an item with a list price of ₱16.79 and a net price of ?₱2.42?

A. 22%

B. 26%

C. 54%

D. 74%

Trade Discount = List Price x Trade Discount rate

Net Price = List Price – Trade Discount

TD = 16.79 x 2.42

= 40.63

But, in the given option, 26% is nearest to the correct answer.

CARPENTRY AND MASONRY

• CARPENTRY

– art and manner of cutting, forming and joining wood parts together.

– involves shaping and assembling structural woodwork.

• Carpenter – Builder or skilled craftsman who performs carpentry works

• Woodworking – Skills developed in terms of measuring, cutting, framing, joining

and finishing wood materials.

Types of Woods

1. Lumber

– Woods that came from trees, either softwood or hardwood.

• Softwood – called as conifers because many of them bear cones.

• Hardwood – comes from broad leafed (deciduous) trees

2. Yard lumber

– Prepared lumber for variety of uses.

• Select grade – lumber of good appearance that can take different

finishes such as stain, paint, and enamel.

• Common grade – suitable for rough carpentry. It is not of finishing

quality (eg. Coco Lumber)

3. Manufactured wood

– Also called man-made wood, this are timber sheets which are produced

by gluing wood layers or wood fibers together.

• Wood veneer –thin slices of wood

• Plywood – a sheet material from thin layers or "plies" of wood veneer

• Pressed wood or Fiber wood – also called as Medium-density fiber (MDF), made

from woodchips

• Particle board – also known as Low-density fiber (LDF) or chipboard. It’s

cheaper, denser and more uniform than conventional wood and plywood

• Laminated wood – logs are processed by sawmilling and drying

• DEFECTS OF WOODS

• Knot – Branch or limb has been exposed

• Check – small crack or split.

• Split – break or big crack in the board.

• Decay – Rotting of wood

• Stain – Discoloration

• Wane – lack of wood on the face of the piece

• Warp – crack, bow, cup, wind (twist) or any combination of this.

• Lumbers are sold following the description:

• Surfaced two side or S2S – planed or smooth on two sides.

• Surfaced four side or S4S – planed or smooth on four sides.

• Surfaced in two side and one edge or S3S – board has been surfaced S2S

first, then one edge is ripped straight.

• Rough lumber – unplanned usually passes exact dimension in T, W, L.

• Surfaced lumber – Planed lumber usually lessened in actual size by about

3/8 of an inch.

• Prices of lumber ranges according to the following:

• Types of wood

• Dimensions

• Grades of lumber – either sun dried, air dried or kiln dried

• Basic Consideration on the Quality of Work Done:

• Quality of wood selected

• The design of the project

• The skill and basic processes involved in making the project

• Wood Preparation

• Seasoning – process of drying the wood in preparation for use.

• Finishing

Seasoning

• the process of drying the wood in preparation for use.

– Air Seasoning (Sun Dried) – filling the wood in open air

– Kiln Seasoning (Kiln Dried) – the use of oven to dry wood

– Treated – Use of Chemical compound before seasoning

• approximate moisture content of drying hardwood for home furniture are:

20 % for softwood

6-12 % for hardwood

Finishing

• Scraper – used to produce a very smooth surface.

• Sand paper – used to smoothen the surface of wood.

• Wood fillers (Masilya) – used to eliminate deep cuts and holes

• Stain – a wood finishing metal, derived from different color of woods such as

walnut, mahogany and natural color.

• Shellac – came from gums substances of insects

• a. Orange Shellac – natural type

• b. White Shellac – produced by bleaching

• Varnish – most used clear finishing material

• Paints – most widely use in finishing a project.

• a. Latex paint – is easier to work with and dries more quickly

• b. Enamel Paint – used for coating surfaces that are outdoors

• c. Lacquer Paint – used for a number of hard and potentially shiny

finishes applied to materials such as wood and metals.

• Common Wood Joints

1. Dado Joint (across the grain) Groove that runs on board, commonly use

for making cabinets and bookshelves.

2. Rabbet Joint (along the grain) Commonly used for making frames to hold

glasses in drawers and other cabinetwork.

3. Mortise and Tenon (force fitting) Oldest and strongest kind of wood joint.

This is considered best for quality chairs, tables and benches.

4. Miter Joint Uses 45 degrees angle cut, intended for making frames.

5. Lap Joint Used for reinforcing wood length. Wood assembling is

overlapping each other.

6. Butt Joint Simplest type of wood joint, two pieces of wood is nailed in one

end.

7. Dovetail Joint Used on the corner of drawers and chairs.

8. Tongue and Groove is widely used for re-entrant angles, allow two flat

pieces to be joined strongly together to make a single flat surface

• MITER JOINT – picture frame

• LAP or BUTT JOINT – tables and chairs

• MORTISE and TENON – chairs, table and benches

• Cutting Tools

• Back Saw – making wood joint.

• Coping Saw – irregular shape and curves

• Crosscut Saw – across the grain

• Hack Saw – cut metal

• Key Hole or Compass Saw – irregular and circle shape in wood.

• Long crosscut Saw – large and round lumber

• Rip Saw – along the grain

• DESIGN A PRODUCT

Designing processes to follow;

1. Clarify the purpose, condition and place of use.

2. Draw a conceptual picture.

3. List the materials needed.

4. List the tools and equipment to be used in processing.

5. Prepare technical drawings and parts drawings.

6. Make prototype if possible.

• Wood Floor System

1. Girder – principal beam extending from wall to wall.

2. Floor joist – placed on the girders where the floor boards are fastened

3. Sill – rest horizontally upon the foundation

4. Header – Short transverse joist that supports the end of cut-off joist at a stair well

hole

5. Trimmer – Supporting joist which carries an end portion of header.

6. Flooring – tongue and groove board which is most common of wood flooring

materials.

• Roof System

1. Shed or Lean-to-Roof – Simplest form of roof consisting of one single slope.

2. Gable or Pitch Roof – Most common type and economical form of roof

3. Hip Roof – Common form used in modern houses

4. Hip and Valley Roof – Combination of hip roof and an intersecting gable roof

forming T or L shaped building.

5. Pyramid Roof – Modification of hip roof

6. Gambrel Roof – Modification of the gable roof with each side having two slopes.

7. Dome – Hemispherical form of roof

• Types of Roof Frame

Rafters

1. Common Rafter – extended at right angle from the plate or girt to the

ridge.

2. Hip Rafter – diagonally laid from the corner of plate or girt to the ridge.

3. Valley Rafter – does not extend from plate or girt to the ridge.

4. Jack Rafter – frame between hip rafter and girt are called hip jack. The

frame between the ridge and valley rafter are called valley jack and

those frame between the hip and valley rafter are called cripple jack.

5. Octagonal Rafter – placed on octagonal shaped plate at the central

apex or ridge pole.

Truss

– series of triangles used to distribute load and stiffen the structure spacing

– Girts – the structural member that supports the rafters or truss of a building.

– Collar Beam – ties between rafters on opposite sides of roof.

– Purlins – the structural member placed on top of the rafter or top chord of

a truss that support the roofing materials.

Board foot (unit measurement of lumber)

• (T” x W” x L’ ) / 12

• Example:

– 7 pieces of 2” x 4” x 12’ , cost Php 11.00 per board feet.

– 2x4x12 = 96/12 = 8 bd. ft. x 7 pcs = 56 bd. Ft.

– (8 bd. Ft. x 7 pcs) x Php 11.00

– 56 bd. Ft. x Php 11.00

– Php 616.00

MASONRY

• Concrete – artificial stone as a result of mixing sand, cement, gravel and water.

• Mortar – mixture of cement, sand and water used for binding stones, bricks, etc.

or for plastering.

• Plaster – mixture applied wet to wall or ceilings and hardened to produce

smooth surface.

• Cement – a bonding agent that reacts with water to form a hard stone-like

substance.

– Two types of Cement

• Portland Cement (Approx 24Hrs Curing Period)

• Pozzoland Cement (Approx 72Hrs Curing Period)

• CHB – most widely used masonry material

• Bricks – manufactured from clay

• Ashlars – stone blocks laid in parallel horizontal courses.

• Rubble stone – irregular stones with good face for wall surface.

• Aggregates – material bound together into a conglomerated mass by cement

and water to form concrete, mortar or plaster.

– Fine sand

– Coarse crushed rocks, gravel

BLESSING NOTES

• Carpentry – referring to technology and science of cutting, fitting, and

assembling
• thumb – used as guide

• working with piece of materials as in sawing, boring, filing and planing, always

use – Clamps

• marking the thickness – marking gauge

• squareness – Try square

• Angles – Sliding T bevel

• Carpentry – referring to technology and science of cutting, fitting, and

assembling

• thumb – used as guide

• working with piece of materials as in sawing, boring, filing and planing, always

use – Clamps

• marking the thickness – marking gauge

• squareness – Try square

• Angles – Sliding T bevel

• hardwood – 6-12 %

• Softwood – 20 %

• angle used in sawing soft and thin wood – 30-45 degrees

• Seasoning - process of drying the lumber

• Sawing – preparation of wood for commercial purposes

• common plywood is 4 x 8 feet

• provides greater holding power than nails – screw

• process of smoothening using sand paper – Sanding

• constructing tables and chairs – Mortise and Tenon

• CHB – bound together by a material called mortar

• artificial stone – Concrete

• most widely used masonry materials – Hollow blocks

• manufactured from clay – Bricks

• conglomerated mass – Aggregates

• aggregate components of a total mass of concrete – 90% (exact composition is

95%)

• 1: 3: 6 – class C concrete mixture

• hand mixing 1⁄2 kg of water + 1 kg of cement + 2 kg of sand + 2.5 – 3 kg of gravel

• vertical – Plumb bob

• classifications of masonry tools – none of the above (2 only, Roughing Up and

Surface Finishing Tools)

• finishing a surface – Float

• fine textured concrete plaster – Rubber foam

• Economy – NOT to be considered in proportioning concrete mixture

• commonly used in small and large construction – Portland cement

• practices in mixing cement EXCEPT, Add plenty of water

• purpose of footing in masonry, It prevents the foundation from sinking

• Has long period of curing time – Pozzolan

• smallest division of the metric scale – millimeter

• one inch to centimeters – 2.54

• best to use – Kiln dried

• caliper – cylindrical object

• Fastening materials – nails

• Plywood – three or more veneer slice

• strongest form – mortise and tenon

• sanding – done before the application of finishing materials

• S4S – four of its sides are smooth or planed

• splicing or joining of wood using two side blocks – Fishing

• simplest – Butt joint

• major horizontal support – Header

• series of triangles – Truss

• 60 degrees –tooth of a cross cut saw

• solid color instead of a wood pattern – Opaque finishes

• oldest and most commonly used building material – Wood

• conifers – Soft wood

• binding agent – Cement

• rough – cutting marks are visible

• put through planking machine – dressed

• been dresses and matched, ship lapped, or patterned – worked

• plank of wood that has been roughly cut – Lumber

• Flat-grain – parallel to the face

• Edge-grain – 90 degrees to the face

• art of building with stone, bricks, concrete – Masonry

• you hold on to – Handrail

• part do you step on – Tread (minsan READ ang kalagay sa option)

• Door hinge – door swing when you close and open it

• standard height of the riser – 6-8 inches

• protective equipment, EXCEPT – ear muffs

• Helmet – protects the carpenter from falling objects

• protects the carpenter from falling – Belt and harness

• compress baked clay – Bricks

• closely together – Close-grain

• do not run parallel to the board – Cross-grain

• picture frame – Miter joint

• shelves of a bookcase – Dado joint

• end of one member inserted to hole of the other member – Mortise and Tenon

joint

• Lap joint – one side over the other

• Butt joint – one end over the other

• rigid and durable – Mortise and Tenon joint

• 45 degrees angle – Miter joint

• protects the room occupants – Rabbet joint

• middle of a bench – Bridle joint

• English system – inch

• Metric system – meter

• measure long distances – Pull-push rule

• mark very rough objects – Chalk line

• vertical line – Plum bob

• fasten and remove nails – Claw hammer

• smoothen wood surfaces – Plane

• smooth finish of concrete after floating – Concrete trowel

• cut brick, block, or stone – Mason's hammer

• repair mortar joints – Pointing trowel

• and move mortar – Brick trowel

• mix concrete – Shovel

• lays bricks – Hawk

• flat with handle at the back usually made of wood – Float

• shaping and forming concrete edges – Edger

• mix concrete for column and slab – 1 : 1 1/2 : 3

• class B mixture – 1 : 2 1/2 : 5

• mix concrete for a slab in the ground – 1 : 2 : 4

• mix concrete for hollow block filler – 1 : 3 : 6

• can be molded without segregation – Plasticity

• degree of wetness or slump – Consistency

• results from mixing cement, sand, and water – Mortar

• results from mixing cement and water – Grout

• process of finishing using mortar – Plastering

• Start laying ceramic tiles – Center

• Start laying concrete hollow blocks – Left

• mix mortar for plastering – cement and sand

• toilet and bathroom flooring – Non-skid granite tiles

• Bricks longer side is exposed to view – Stretcher

• regulate the strength of concrete, EXCEPT , Dropping concrete mixture from high

elevation

• 1:2:4 – Class A

• set-up the lateral level of a concrete fence – Spirit level

• coarse aggregates – Gravel

• process of hardening of concrete – Curing

• widely used in small and large construction including roads and highways –

Portland cement

• added to the batch immediately before or during its mixing – Admixture

• the structural reinforcing member – Stirrups

• structure that holds the poured concrete – Forms

• days shall concrete be maintained above 10 °C temperature – 7 days

• 4" x 8" x 16" concrete hollow blocks – 55 to 60 pcs

COMPUTATION

• A carpenter bought 7 pieces of 2”x4”x12’ lumber. If the price is 35.00 per board

foot, how much did he pay?

a. 1,980.00 c. 1,950.00

b. 1,940.00 d. 1,960.00

2x4x12 = 96/12 = 8 bd. ft. x 7 pcs = 56 bd. Ft.

(8 bd. Ft. x 7 pcs) x Php 35.00

56 bd. Ft. x Php 35.00

= Php 1,960.00

• Find the total number of board feet of six pieces of lumber with a dimension of 2"

x 4" x 12'.

a. 8 bd. ft.
b. 96 bd. ft.

c. 48 bd. ft.

d. 480 bd. ft.

2x4x12 = 96/12 = 8

8 bd. ft. x 6 pcs = 48 bd. Ft.

• If you have 2 ft length of a piece of wood, how long is it in inches?

a. 25

b. 12

c. 22

d. 24

2 ft x 12 inches = 24 inches

• If you have 2 yards length of a piece of wood, how long is it in inches?

a. 82

b. 72

c. 84

d. 64

2 yards x 36 inches = 72 inches

• 10 yards length of wood is how many feet?

a. 36

b. 35

c. 30

d. 24

10 yards x 3 feet = 30 feet

• One decameter of G.I. sheets is how many centimeters?

a. 10

b. 20

c. 100

d. 1,000
1 decameter = 0.10 meter

1 meter = 100 centimeter

0.10 m x 100 cm = 10

• A 2" x 3" x 12' lumber is how many board feet?

a. 2

b. 6

c. 8

d. 10

(2 x 3 x 12) /12 = 72/12

=6

• 5 pcs. of a 1" x 1' x 8' lumber is how many board feet?

a. 30

b. 35

c. 40

d. 45

1x1x8=8

8 x 5 pcs = 40

• 50 millimeters length of a piece of lumber is how many decimeter?

a. 5

b. 0.05

c. 0.005

d. 0.5

1 meter = 1000 millimeter

1 meter = 10 decimeter

50 mm / 1000 m = 0.05 m

0.05 m x 10 dm = 0.5 dm

• How tall is a 10 meter building in inches?

a. 3.937
b. 39.37

c. 393.7

d. 3,937

1 m = 39.37 inches

10 x 39.37 = 393.7

• A mason wants to lay concrete hollow blocks into a 10 sq.m. wall. How many

CHB are needed?

a. 100 pcs.

b. 120 pcs.

c. 122.5 pcs.

d. 125 pcs.

10 sq. m x 12.5 pcs (standard) = 125 pcs

• How many 8" x 8" wall tiles are needed in a wall 2.5 m width and 4.0 m height?

a. 300 pcs.

b. 500 pcs.

c. 550 pcs.

d. 600 pcs.

2.5 m x 4 m = 10 sq m

10 sq m x 25 pcs (8”x8”) = 250 pcs

(pwede yung 300 dahil nearest to 250)

• A carpenter bought 10 pcs. of a 2" x 3" x 8' lumber. If the price of lumber is ₱50.00

per board foot, how much did he pay?

a. ₱1,800

b. ₱1,900

c. ₱2,000

d. ₱2,100

2 x 3 x 8 / 12 = 4

4 x 10 pcs = 40 bd ft x Php 50 = Php 2,000

• A carpenter bought 10 pcs. of a 2" x 4" x 6' lumber. If the price of lumber is P50.00
per board foot, how much did he pay?

a. ₱1,800

b. ₱1,900

c. ₱2,000

d. ₱2,100

2 x 4 x 6 / 12 = 4

4 x 10 pcs = 40 bd ft x Php 50 = Php 2,000

• How many cubic yard of concrete do you need to cover a space with an area

of 25 square foot and a slab thickness of four (4) inches?

a. 0.34 cu. yd.

b. 0.32 cu. yd.

c. 0.25 cu. yd.

d. 0.51 cu. yd.

Convert 4 inches into foot

4 / 12 = 0.33

0.33 x 25 sq m

8.25 sq m / 27 (cu. yrd)

0.30555 ... or 0.31 cu. yrd

(0.34 is the nearest)