Instructional Planning

(The process of systematically planning, developing, evaluating and managing the instructional
process by using principles of teaching and learning - D.O. 42, s. 2016)
Detailed Lesson Plan (DLP) Format

School Tangub City National High School Grade Level Grade 12

Teacher JENEVIE R. PIKITPIKIT Learning BUSINESS FINANCE
Area
Time & September 14, 2017 Quarter 3RD QUARTER
Dates

I. OBJECTIVES
A. Content The learners demonstrate and understand the process of preparing financial
Standards statements as well as the methods or tools of analysis of financial statements,
including horizontal analysis, vertical analysis, and financial ratios to test the
level of liquidity, solvency, profitability, and stability of the business

B. Performance The learners will be able to solve exercises and problems that require financial
Standards statement preparation, analysis, and interpretation using horizontal and
vertical analyses and various financial ratios

C. Learning The learners shall be able to prepare the Financial Statement

Competencies /
Objectives. Define measurement levels, namely, liquidity, solvency, stability, and
Write the LC profitability
code for each ABM_BF12-IIIb-7

Specific Learning Outcomes:

At the end of this lesson, the learners will be able to:
• Apply their knowledge on liquidity and efficiency ratios in tackling real life business
problems.
• Pinpoint business problems and formulate relevant recommendations and
strategies.

II. CONTENT Review of Financial Statement Preparation, Analysis, and Interpretation.

(Measurement Level)
III. LEARNING
RESOURCES
A. References
1. Teacher’s Page 54-59
Guide pages
2. Learner’s
Materials pages
3. Textbook
pages
4. Additional
Materials from
Learning
Resource (LR)
portal
B. Other  Laptop
Learning  Projector
Resources  Calculator
V.
PROCEDURES
A. Reviewing Review of the previous activity by calling someone to volunteer.
previous lesson (2min)
or presenting
the new lesson
B. Establishing The objective will be presented by flashing it on the screen.
a purpose for
the lesson 1. Apply their knowledge on liquidity and efficiency ratios in tracking real
life business problem.
2. Pinpoint business problems and formulate relevant recommendations
and strategies.
C. Presenting 1. Ask the learners if they have tried buying from sari-sari store on credit.
examples/
instances of the 3. Ask them what the implications are if you or your household don’t pay
new lesson your obligations to your neighbor’s sari-sari store.

4. Write their answers on the board.

5. Ask them, if a household does not pay its obligations on time, will it
also have the same experiences like the household not paying its
obligations? What could possibly happen to the business in the short-
run? Long-run?

2. Explain that business cases are used to discuss certain issues and problems of a
specific company. Learners will take the point-of-view of
owners/managers in analyzing the case.
(5min)

D. Discussing • The class will be divided in groups of 4 to 6 learners.

new concepts • Learners will discuss and analyze the business case among their groups. They will
and practicing then need to summarize their analysis in an essay/paper.
new skills #1 The paper will have the following outline:
Case Background/Story,
Alternative Courses of Action
Analysis (including computations), and Recommendation.

The paper can be one to two pages of yellow sheet or bond paper. They must do this
within 45 minutes.

• Two groups will be asked to present. Presenting groups do not need to submit an
essay/paper. Instead, they need to prepare their
presentation with materials like manila paper, transparencies, or PowerPoint. Groups
can volunteer or the teacher can also assign who will
present. Assignments should be finalized before learners start their case analysis.

• Presentation time is 10 minutes for each group. After the presentation, there will
be a 5-minute Q&A session.
 2. Make sure to remind them that they will take on the shoes of the owner/manager in
solving the case.
E. Discussing Below is the business case. You may look for or make another business case as long
new concepts as it highlights the same topics.
and practicing
Zapatoes, Inc
new skills #2
Anthony Cruz owns Zapatoes, Inc., a home-grown Filipino shoe company. His
company has experienced tremendous growth since it has started its operations in
2009. With a growing demand for his products, Anthony
Cruz is considering expanding his operations by opening his first production facility.
Currently, he pays another company to manufacture the shoes he designs. He is
contemplating to produce the shoes Zapatoes, Inc. facility, with the hope of lowering
the cost of production.
The company needs PHP10 million to finance this expansion and is at a tight cash
position. Anthony Cruz is now wondering where to get the funds needed – invite an
investor or personally borrow from a bank?

Zapatoes, Inc. sold 3,300 pairs on 2013, 4,500 pairs on 2014, and 6,200 pairs in
2015. With the brand’s target market – young professionals and college students, it
can only sell it at the PHP1,000 to PHP2,000 price range per pair.
Anthony is wondering whether owning his own manufacturing facility can really
improve its profitability. Currently, he is producing his shoes at PHP475 pesos per
pair. He expects that he can lower production costs to as much as PHP300 per pair if
he will manufacture it himself. However, opening a new production facility will
increase operating expenses (including depreciation) by 30%. Currently, most of his
operating expenses are marketing and distribution costs.

To finance the PHP10 million facility, he has three options:

• Accept a PHP10 million equity investment from his friend, Alex. Alex will hold 45%
percent ownership of the business afterwards. Alex does not demand any specific
return.
• Short-term loan for 1 year for PHP10 million at 6% per annum from Shortime Bank.
• Long-term loan for 5 years for PHP10 million at 10% per annum from Longly Bank.

Anthony is very confident that his sales volume will still grow for the next 5 years.
However, his confidence is tainted by his uncertainties over the impact of opening a
new production facility. What must he do? Here are the comparative financial
statements of Zapatoes, Inc.:
 Guide Questions:
1. What is the Zapatoes Inc’s capital structure? What is the effect of an
additional debt? Additional equity?
2. Assess the profitability of Zapatoes Inc’s. What is the effect of issuing debt
to its
profitability? Effect of equity?
3. What factors are considered in deciding whether to take long-term or short-
term
financing?
4. What financing should Anthony Cruz take?
F. Developing 1. Write on the board the main points raised by the presenting groups.
mastery (Leads 2. Provide your own analysis.
to Formative • Start by pinpointing the main issues relevant to the case.
Assessment 3) • Provide the correct figures for the profitability and leverage ratios.
• Discuss how you arrive at your decision. Highlight important
recommendations/changes that must be done to the operations of Zapatoes, Inc.
(5 min)
G. Finding What values you can relate to in discussing this lesson? Does it give
practical advantage to your part?
applications of (5min)
concepts and
skills in daily
living
H. Making Delivery
generalizations 1. Review on the contents of the financial statements, classification
and as to current and non-current assets and liabilities.
abstractions 2. Introduce the four main categories of financial ratios:
about the lesson Liquidity, profitability, efficiency, leverage
3. Define liquidity, define the types of liquidity ratios and the formulas
on the board. Current ratio and quick ratio
4. Show a sample financial statement and ask the learners to
compute for the ratio
5. Provide exercises.
(10min)
I. Evaluating Answer the problem below.
learning
Students shall create a Venn Diagram depicting their understanding about the
three main terms in doing FS Analysis.
Content 4 Creativity 1
(30min)
J. Additional Provide a financial statement of a company and ask the learners to compute
activities for for liquidity and efficiency ratios.
application or
remediation

V. REMARKS
VI. REFLECTION
A. No. of
learners who
earned 80% on
the formative
assessment.
B. No. of
learners who
require
additional
activities for
remediation.
C. Did the
remedial
lessons work?
No. of learners
who have
caught up with
the lesson.
D. No. of
learners who
continue to
require
remediation
E. Which of my
teaching
strategies
worked well?
Why did these
work?
F. What
difficulties did I
encounter which
my principal or
supervisor can
help me solve?
G. What
innovation or
localized
materials did I
use/discover
which I wish to
share with other
teachers?