Republic of the Philippines

DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OFFICE OF ESCALANTE CITY
BUENAVISTA NATIONAL HIGH SCHOOL
Brgy. Buenavista, Escalante City, Negros Occidental

DAILY LESSON PLAN

Name of Teacher:_ _MARLYN E. BARRO __ School Year: __________________________
Learning Area:__ Business Finance __ Grade Level:___ ABM 12 _____
Teaching Date:________________Time:______ __ No. of Day(s) Lesson to be taught:_________

I. OBJECTIVES
A. Content Standards The learners demonstrate an understanding of the
process of preparing financial 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 Standards The learners shall be able to solve exercises and
problems that require financial statement
preparation, analysis, and interpretation using
horizontal and vertical analyses and various financial
ratios
C. Learning Competencies/Objective(s) define the measurement levels, namely, liquidity,
(write the LC code for each) solvency, stability, and profitability
ABM_BF12-IIIb-7
D. Specific Learning Objective/s 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
III. LEARNING RESOURCES
A. Reference
1. Teacher’s Guide Pages pp. 54- 59
2. Textbook Pages pp.17-40
3. Additional Materials from Learning Teaching Guide for Senior High School Business Finance
Resource (LR) portal
B. Other Learning Resources
IV. PROCEDURES
A. Review: Review profitability and leverage ratios. Ask learners
what profitability and leverage mean. Write the names of
the different types of ratios and their formulas on the
board.
B. Motivation Video Presentation on Profitability and Leverage Ratios
Provide examples. Cite local business entities.
C. Presentation 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.
Communicate learning objective/s.
D. Activity Proper Case Discussion:
Discuss the mechanics of the case discussion.
(Business case and mechanics attached)
E. Abstraction
F. Application
V. EVALUATION
VI. REFLECTION
A. No. of learners who earned 80% in the
evaluation
B. No. of learners who require additional
activities for remediation who scored below
80%.
C. Did the remedial lesson worked? 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.
Prepared by: Checked by:

MARLYN E. BARRO JESUS V. TABELINO

Teacher II Principal III
Mechanics of the case discussion:
1) The class will be divided in groups of 5 to 6 learners.
2) Learners will discuss and analyze the business case among their groups. They will then need to summarize
their analysis in an essay/paper.
3) The paper will have the following outline: Case Background/Story, Analysis (including computations), and
Recommendation. The paper can be one to two pages of yellow pad or bond paper. They must do this
within 45 minutes.
4) 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 or PowerPoint. Groups can
volunteer or the teacher can also assign who will present. Assignments should be finalized before learners
start their case analysis.
5) Presentation time is 10 minutes for each group. After the presentation, there will be a 5-minute Q&A
session.
6) Distribute the printed cases to the learners.

CASE ANALYSIS (45 MINS)

1) Allow the learners to break into groups. From time to time, update them with the remaining time to do the analysis
and their essay/presentation.
2) Make sure to remind them that they will take on the shoes of the owner/manager in solving the case.

Zapatoes, Inc
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?

Here are the comparative financial statements of Zapatoes, Inc.:

 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?