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Entrep DLP 11 - Albios, Joyce Ann

The document is a student's record of their Dynamic Learning Program (DLP) on entrepreneurship. It includes: 1) An overview of the topic which is financial forecasting and its importance for entrepreneurs. 2) Examples of qualitative and quantitative forecasting methods and key considerations like revenues, costs, and expenses. 3) An activity where the student forecasts the revenues, costs, assets, and financial statements of a sample business called Frenzy Foods over 5 years.

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Joyce Ann Albios
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136 views

Entrep DLP 11 - Albios, Joyce Ann

The document is a student's record of their Dynamic Learning Program (DLP) on entrepreneurship. It includes: 1) An overview of the topic which is financial forecasting and its importance for entrepreneurs. 2) Examples of qualitative and quantitative forecasting methods and key considerations like revenues, costs, and expenses. 3) An activity where the student forecasts the revenues, costs, assets, and financial statements of a sample business called Frenzy Foods over 5 years.

Uploaded by

Joyce Ann Albios
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ARELLANO UNIVERSITY

Juan Sumulong Campus


2600 Legarda St., Sampaloc, Manila
SENIOR HIGH SCHOOL DEPARTMENT
School Year 2020-2021

DYNAMIC LEARNING PROGRAM (DLP) NO.11


ENTREPRENEURSHIP

NAME: JOYCE ANN A. ALBIOS DATE: SEPTEMBER 25, 2022


GRADE & SECTION: 12 - ABM 1 TEACHER: MARIA GINA SERRANO

I. TOPIC: CHAPTER 3: FINANCIAL FORECASTING


References: Morato, E. (2016). Entrepreneurship. Rex Bookstore

II. LEARNING GOAL: The students should be able to:


a. forecast the revenues of the business and the costs to be incurred
b. create the company’s five (5) year projected financial statements

III. CONCEPTS: FINANCIAL FORECASTING


FORECASTING
 the use of historic data to determine the direction of future trends
 the process of making statements about events whose actual outcomes have not yet been observed
 a planning pool that helps met in its attempt to cope the uncertainty of the future
 starts with certain assumptions based on the MET’s experiences, knowledge and judgement
 predicting what will happen in the future by gathering and analyzing past and current data
Successful forecasting = Science + Art
Science - implies that the body of the forecasting knowledge lies on the solid ground of quantitative
forecasting methods (solid data and figures) and their correct utilization for various business situation
Art - represents a combination of a decision maker’s experience, logic, and intuition to supplement the
forecasting quantitative analysis

IMPORTANT CONSIDERATIONS OF THE ENTREPRENEUR IN MAKING THE EXPANSION LEAP, ESTIMATING THE
INVESTMENTS AND FINANCING NEEDED FOR THE EXPANSION
 Revenues - shown usually as the item in an income statement from what all charges, costs, and
expenses are subtracted to arrive at net income
 Cost - an amount that has to be paid
 Expenses - incurred by a BUS
1. Rent
2. Phone and utilities
3. Equipment
4. Fixtures
5. Inventory
6. Leaseholds improvements
7. Licenses and tax deposits
8. MKTG - Budgets
TWO (2) TYPES OF FINANCIAL FORECAST METHODS
1. Qualitative method - involves gathering information that cannot be measured such as consumer’s opinion
about new packaging for a product, etc.
2. Quantitative method - uses data to predict future results
(e.g. using past sales volume for the upcoming year)
ARELLANO UNIVERSITY
Juan Sumulong Campus
2600 Legarda St., Sampaloc, Manila
SENIOR HIGH SCHOOL DEPARTMENT
School Year 2020-2021

IV. ACTIVITY/EXERCISES:
Directions: Forecast the revenues of the business and the costs to be incurred by computing the
following data below. (Increased percentage per year = 30%)
Frenzy Food
Statement of Financial Position
in 5 years
1st year 2nd year 3rd year 4th year 5th year
(30%) (30%) (30%) (30%) (30%)
CURRENT ASSETS
Cash 2,430,000 3,159,000 4, 106, 700 5, 338, 710 6, 940, 323
Accounts
receivable 50,000 65,000 84, 500 109, 850 142, 805
Inventory 45,000 58,500 76, 050 98, 865 128, 524. 5
NON-CURRENT ASSETS
Building 75,000 97,500 126, 750 164, 775 214, 207. 5
Land 150,000 195,000 253, 500 329, 550 428, 415
Equipment 25,000 32,500 42, 250 54, 925 71, 402. 5
Permit 7,000 9,100 11, 830 15, 379 19, 992. 7
Furniture
and fixtures 10,000 13,000 16, 900 21, 970 28, 561
OWNER’S EQUITY
Bellbite’s
capital 2,792,000 3,629,600 4, 718, 480 6, 134, 024 7, 974, 231. 2

Frenzy Food
Income Statement
for 5 years
1st year 2 year
nd
3rd year 4th year 5th year
(30%) (30%) (30%) (30%) (30%)
Sales 2,430,000 3,159,000 4, 106, 700 5, 338, 710 6, 940, 323
COST OF GOODS SOLD
Purchases 1,220,000 1,586,000 2, 061, 800 2, 680, 340 3, 484, 442
Freight-in 9,000 11,700 15, 210 19, 773 25,704. 9
Total goods
available 1,229,000 1,597,700 2, 077, 010 2, 700,113 3, 510,146. 9
Purchase
discount 10,500 13,650 17, 745 23, 068. 5 29, 989. 05
Total goods
for sale 1,218,500 1,584,050 2, 059, 265 2, 677, 044. 5 3, 480, 157. 85
Inventory 50,000 65,000 84, 500 109, 850 142, 805
Gross margin 1,168,500 1,519,050 1, 974, 765 2, 567, 194. 5 3, 337, 352. 85

1,261,500 1,639,950 2, 131, 935 2, 771, 515. 5 3, 602, 970. 15


OPERATING EXPENSES
Advertising 20,000 26,000 33, 800 43, 940 57, 122
Salary
expense 852,840 1,108,692 1, 441, 299. 6 1, 873, 689. 48 2, 435, 796. 324
Office
expense 10,000 13,000 16, 900 21, 970 28, 561
Utilities
expense 60,000 78,000 101, 400 131, 820 171, 366
942,840 1,225,692 1, 593, 399. 6 2, 071, 419. 48 2, 692, 845. 324
Total
ARELLANO UNIVERSITY
Juan Sumulong Campus
2600 Legarda St., Sampaloc, Manila
SENIOR HIGH SCHOOL DEPARTMENT
School Year 2020-2021

318,660 414,258 538, 535. 4 700, 096. 02 910, 124. 826

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