School: DIVISORIA HIGH SCHOOL Grade Level: ABM 12

Teacher: MICHELLE V. PASCUAL Learning Area: FUNDAMENTALS OF

ACCOUNTANCY, BUSINESS
AND MANANGEMENT 2
Teaching Dates and Time: ABM: MTWTH 7:30-8:30 Quarter: FIRST

SESSION 1/ JULY 31 SESSION 2/AUG 1 SESSION 3/AUG 2 SESSION 4/AUG 3

I. OBJECTIVES
A. Content Standards The learners demonstrate an understanding of the methods or tools of analysis of financial statements to include horizontal
analysis, vertical analysis, and financial ratios to test the level of liquidity, solvency, profitability, and stability of the business.
B. Performance Standard The learners shall be able to solve exercises and problems that require computation and interpretation using horizontal analysis,
vertical analysis, and various financial ratios. Using download sample financial statement, he / she performs horizontal and vertical
analysis, computes various financial ratios and interprets the level of liquidity, solvency, stability, and profitability of the business.
C. Learning Competencies Define the measurement levels, Perform vertical and Compute and interpret Compute and interpret
namely, liquidity, solvency, horizontal analysis of financial financial ratios such as financial ratios such as
stability, and profitability. statement of a single current ratio, working capital, current ratio, working capital,
ABM_FABM12-Ig-h12 proprietorship gross profit ratio, net profit gross profit ratio, net profit
ABM_FABM12-Ig-h13 ratio, receivable turnover, ratio, receivable turnover,
inventory turnover, debt-to- inventory turnover, debt-to-
equity ratio, and the like. equity ratio, and the like.
ABM_FABM12-Ig-h13 ABM_FABM12-Ig-h13
II. CONTENT Analysis and Interpretation of Analysis and Interpretation of Analysis and Interpretation of Analysis and Interpretation of
Financial Statement Financial Statement Financial Statement Financial Statement
III. LEARNING RESOURCE
A. References TG and CG – Fundamentals of TG and CG – Fundamentals of TG and CG – Fundamentals of TG and CG – Fundamentals of
Accountancy, Business and Accountancy, Business and Accountancy, Business and Accountancy, Business and
Management 2 Management 2 Management 2 Management 2
B. Other Learning Phoenix Publishing House pages Phoenix Publishing House Phoenix Publishing House Phoenix Publishing House
Resources 54-74 pages 54-74 pages 54-74 pages 54-74
www.teachtogether.chedk12.com www.teachtogether.chedk12.co www.teachtogether.chedk12.c www.teachtogether.chedk12.c
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IV. PROCEDURES
 A. Beginning 1. Ask the learners if they have 1. Ask learners what are the 1. Ask learners to give examples
tried buying from sari-sari stores different types of financial of businesses which they think
on credit. statements. are very profitable and examples
2. Ask them what the implications 2.Ask learners what the contents of businesses that they think are
are if you or your household don’t are of the financial statements. not profitable.
pay your obligations to your 2. Take a pick from the examples
neighbor’s sari-sari store. given by the learners – one very
3. Ask them, if a business does not profitable and one that is not so
pay its obligations on time, will it profitable. Discuss what factors
also have the same experiences like affect their profitability. Factors
the household not paying its could include pricing, costs,
obligations? What could possibly operating expenses, etc.
happen to the business? Short-run? 3. Ask learners to reflect why
Long-run? businesses have different levels
of profitability?
B. Middle Discuss what are liquidity,Discuss to the learners the Show to the learners sample Show to the learners sample
solvency, stability and profitabilityimportance of analyzing and financial statement. Show to financial statement. Show to
by showing examples of financial interpreting financial statement. them how to compute and them how to compute and
statement. And the two way of analyzing interpret financial ratios. interpret financial ratios.
financial statement – vertical
analysis and horizontal analysis.
C. End Provide exercises to the learners 1. Group the learners for a group Ask the learners the possible Formative assessment: chapter
and ask the learners to discuss what work. Ask them to compute the reasons why the sample quiz
they think the ratios mean and Horizontal and Vertical Analyses companies have different ratios.
their applications may be. of ABC Inc’s financial statement. What could
2. After the groups have have possibly caused these
computed the Horizontal and differences? What are the
Vertical Analyses, ask the implications?
learners about their opinions
about the company’s profitability,
the ability pay debt obligations,
and how well it is manage
financially.
V. REMARKS
VI. REFLECTION
Prepared by: Checked by: Noted by:

MICHELLE V. PASCUAL MERILYN C. MANANGO ELOIZA L. DIZON, Ph.D.

Teacher II Head Teacher V Principal III