CONTENT/ELEMENTS

OF BUSINESS PLAN

Prepared by:

Mary Mildred P. de Jesus

SHS Teacher
 MOTIVATION
Instructions:
 You are going to college and you decided to
move in a dormitory and you’re planning to
buy some belongings for your room. Based
on the picture shows, select 5 things you will
buy for your new dorm then explain why you
choose it.
 MOTIVATION
 Do you think all of the things that you
chose are according to your budget
plan? Or according to your needs or
wants?
 OBJECTIVES:
At the end of the lesson the student should be able
to:
1. explain the concepts of financial planning,
its components, and its benefits;
2. describe financial statements,
particularly the income statements;
 OBJECTIVES:
At the end of the lesson the student should be able
to:
3. identify the purposes and
methods of income statement
4. can explain the importance of
financial planning in our daily
lives.
 FINANCIAL PLANNING
 The process of developing and
implementing a coordinated series
of financial plans to achieve
financial success. 
 FINANCIAL PLANNING
 It is the studies total requirement of finance in
terms of start-up expenses, fixed expenses,
running expenses etc.
 Financial plan indicates the requirement of
proposed business enterprise. Which includes
fund flow, cash flow statement, break-even point,
projected ratio, and projected balance sheet.
 Components of Financial Plan

F. Pro
A. B. Pro C. Pro D. Pro
Operating E. Break- Forma of
Forma of Forma of Forma of sources
and even
Capital
Income Cash Balance and
Statement analysis application
Budget Flow Sheet
of fund
 TIC-TAC-TOE GAME
 Identified the word revealed and answer if it’s a
Capital or Operating Budget.
 Every time you answer correctly, you will have a
chance to play the tic-tac-toe game.
 The player will select X goes first and the other player
is O.
 The player who draws 3 rows X or O horizontally,
diagonally, vertically wins the game.
TIC-TAC-TOE GAMES
 A. OPERATING AND CAPITAL
BUDGET
 Operating budget – It
focuses on the day-to-day
running of the company and it
usually covers one-year
period.
 A. OPERATING AND CAPITAL
BUDGET
 Capital budget – focus on
internal investment strategy and are
usually long-term, although they may
be updated annually. A typical capital
budget will extend over 5 or 10
years.
 A. OPERATING AND CAPITAL
BUDGET
 But please take note that before we make a
pro forma of income statement we need to
prepare the operating and capital budget.
 If entrepreneur is running sole
trading concern then he is responsible
for budgeting decision.
 A. OPERATING AND CAPITAL
BUDGET
 If it is partnership or other form of
legal concern then budgeting decisions
are to be taken by assigned member of
business.
 Final determination of budgets will
ultimately rest with the owners or
entrepreneurs.
B. PRO FORMA INCOME STATEMENT
 It Refers to projected net profit calculated
from projected revenues minus projected
costs and expenses. It should comprise of
sales on monthly basis, insight on operating
expenses, salaries and wages should
highlight on total number of employees
employed in company.
 B. PRO FORMA INCOME
STATEMENT
 The income statement shows your
revenues, expenses, and profit for a
particular period—a snapshot of your
business that shows whether or not your
business is profitable. Subtract expenses
from your revenue to determine your profit
or loss.
 B. PRO FORMA INCOME
STATEMENT
 Revenue / Income
Less: Expenses
= Net profit / (Net loss)
 B. PRO FORMA INCOME
XYZ Corporation
STATEMENT
For the month ended December 2017
Income Statement
Advertising costs P 7, 500
Salaries and wages 15, 000
Insurance expense 7, 300
Tax expense 13, 414
Utilities expense 6, 000
 B. PRO FORMA INCOME
XYZ Corporation
STATEMENT
For the month ended December 2017
Income Statement
Bank charges 654
Service revenue 94, 600
Rent expense 15, 000
Fuel 2, 500
Bad debts 1, 000
 B. PRO FORMA INCOME
STATEMENT XYZ Corporation
For the month ended December 2017
Income Statement
Income:
Service Revenue
P 94, 600
Less: Expenses
Advertising costs P 7, 500
Salaries and wages 25, 000
Insurance expense 7, 300
Tax expense 23, 414
Utilities expense 16, 000
Bank charges/interest paid 654
Rent expense 15, 000
Fuel 2, 500
Bad debts 1, 000 68, 368
Net Profit P 26, 232
 B. PRO FORMA INCOME
STATEMENT
 If revenue is higher than your
expenses it is a net income/profit.
 If revenue is lower than your
expenses it is a net loss.
ACTIVITY: INCOME STATEMENT
 Group yourselves into 5 teams. Each group will
have a manila paper and a pen. And based on the
given below, prepare an income statement. You
only have 5 minutes to think and prepare. Once
the time stopped nobody is allowed to move. One
representative will go in front and explain your
answer.
 B. PRO FORMA INCOME
Fajardo Medical Clinic
STATEMENT
For the month ended July 31, 2017
Income Statement
Salaries expense P 50, 000
Insurance expense 13, 000
Supplies used 5, 000
Medical revenue 135, 500
Rent expense 14, 000
 B. PRO FORMA INCOME
Fajardo Medical Clinic
STATEMENT
For the month ended July 31, 2017
Income Statement
Utilities payable 15, 400
Interest income 12, 000
Bad debts 12, 800
Gas & Oil 10, 000
B. ANSWER - INCOME STATEMENT
Fajardo Medical Clinic
For the month ended July 31, 2017
Income Statement
Income:
Medical Revenue P 135, 500
Interest Income 12, 000
Less: Expenses
Salaries expense P 50, 000
Insurance expense 13, 000
Supplies used 5, 000
Rent expense 14, 000
Utilities payable 15, 400
Gas & Oil 10, 000
Bad debts 12, 800 120, 200

Net Profit P 27, 300

 VALUING:
 The last objective that we
have is explain the
importance of financial
planning in our daily lives?
THANK
YOU!!