Entrepreneurship powerpoint presentation

Learning module

1. ENTREPRENEURSHIP Quarter 2 – Module 9 Generate an Overall Report on the Activity 1

2. OBJECTIVES: In this key move you are expected to: track details of the activities in the business write details of the activities in the business make an overall report of the activities in the business 2

3. PRE-TEST Classification. Indicate profitability ratios or financial leverage ratios to classify each item. Write the correct answers clearly in a separate sheet. 1. (GAIN FROM INVESTMENT - COST OF INVESTMENT) /COST OF INVESTMENT = ROI 2. EARNINGS BEFORE INTEREST AND TAXES (EBIT) /INTEREST EXPENSES = INTEREST COVERAGE RATIO 3. Earnings before interest and taxes are your net profits plus interest and tax expenses. 4. GROSS PROFIT / TOTAL REVENUE = GROSS MARGIN RATIO 5. Return on investment shows how successful your investments are. 6. The debt to asset ratio measures the percentage of assets finance with debt. 7. The fewer assets you acquire with debt, the better. 3

4. 8. The interest coverage ratio shows how easily your business can pay interest expenses on debts. 9. The more debt you have compared to equity, the riskier you are to lenders and investors. 10. The gross margin ratio compares your gross margin to its net sales in business. 11. The net profit margin shows how much of your earnings turn into profit. 12. (TOTAL REVENUE - ALL EXPENSES) / TOTAL REVENUE = NET PROFIT MARGIN 13. This ratio measures how well you sell inventory. 14. TOTAL DEBT / TOTAL ASSETS = DEBT TO ASSET RATIO 15. TOTAL DEBT / TOTAL EQUITY = DEBT TO EQUITY RATIO 4

5. Classification. Indicate positive (+) sign for increase and negative (-) sign for decrease correspondingly for each account type. Write each correct answer clearly on a separate sheet.

6. What activities are performed by the business? The forms of business discussed earlier in Quarter 1- module 2 are grouped by the type of business activities they perform such as services, merchandising, and manufacturing. Why are business reports on business activities important? Reports make it easier to analyze your business and evaluate its overall health. It is an indication if you are meeting your goals. The information will allow you to strategically plan.

7. 7 Steps to get the most out of your business reports: Identify the issue , go into your reporting knowing what you want to figure out. Example: Sales seem slower at a certain day of the week. Explore the issue , start looking at the data from every possible angle. The more ways you look at the data, the more insights you might be able to glean. Example: Materials run out at the highest point of sales, materials are only available from supplier at certain days of the week. The schedules of purchase and sales demand do not match.

8. 8 Make inform recommendations , you need to decide how you can either fix the issue or in some cases, you might even recommend doing nothing. Example: Book advance orders on the slow sales day and increase stock purchase in preparation for high sales day. You can create a business report for any part of your business, but here are three types that are particularly useful: Three (3) categories of must-have in a business report Sales reports Sales are the lifeblood of your business. You can create and adjust your sales strategy.

9. 9 Inventory reports Inventory reports are updated regularly, to know inventory needs. Payroll reports Your most valuable resource as a business owner is your team. Payroll reports allow you to review on the uprightness of the pay you have given. You do pay yourself as well. USE THE NORMAL BALANCE OF ACCOUNTS IN BUSINESS TO CHECK ON REPORTS. The normal balance of any account is either a debit or credit guided by the accounting equation . It is in the normal balance that accounts increase in values otherwise, it is a decrease in value or negative balance .

10. Although each account has a normal balance in practice it is possible for any account to have either a debit or a credit balance depending on the bookkeeping entries made. The benefit of knowing the normal balance is that if an account shows a balance other than its normal balance, it is a hint that there might be an error on the account and further investigation may be needed. When an account has a balance that is opposite the expected normal balance of that account, the account is said to have an abnormal balance or a negative balance. Here is the table on the balance of accounts: ACCOUNTS DEBIT (+/-) CREDIT (+/-) Assets + increase - decrease Liabilities - decrease + increase Equity - decrease + increase Revenue - decrease + increase Expenses + increase - decrease

11. The overall report on business activities is mainly financial. It is a financial reporting that uses financial statements and ratios to disclose financial data that shows the financial health of a business over a period. The overall report on business activities is mainly financial. It is a financial reporting that uses financial statements and ratios to disclose financial data that shows the financial health of a business over a period.

12. ASSESSMENT Businesses perform activities. How do activities mark a business? Businesses are grouped by activities. Businesses are launched by activities. Businesses are powered by its activities. d. Businesses are timed by these activities. Business activities are planned, evaluated, and analyzed. How is it presented? Chats on goal, plans and analysis. Graphs on goals, plans and analysis. Markers on goal, plans and analysis. Reports on goals, plans and analysis.

13. 3. Data must be known for the business. How is the data shown? business receipts business report business repost business returns 4. Useful business reports are formal. Why are the business reports useful? Reports include access to system. Reports include data with written analysis. Reports include expired details on documents. Reports include printed articles on media and sites.

14. 5. Businesses get out the most of their reports. How is it done? Funds are used. Holds are used. Parts are used. Steps are used. 6. Identify and explore the issue in business reporting. Why is this done? Make informed attention. Make informed explorations. Make informed identifications. Make informed recommendations

15. 7. Inventory, payroll and sales are business reports. How important are these? These are kept reports. These are must-have reports. These are optional reports. These are partly used reports. 8. There is a normal balance for each account. Which is a normal balance? It is both debit and credit. It is dependent on the debit. It is either be debit or credit. It is only the debit of the accounts.

16. 9. There is a guide for the normal balance. How is it guided? accounting assets. accounting capital. accounting equation. accounting inventory. 10. The data on the financial health are in Overall Report on business activities. How is it updated? through financial banks and clearance through financial depository and funds through financial receipts and issuance through financial statements and ratios

17. 11. Profitability and leverage are financial ratios of the business. Why are these in business? It is the financial performance. It is the financial redundance. It is the financial significance. It is the financial transmittance. 12. Profitability ratio of the business must be high. Why must it be high? A balance finance is usually a high profit ratio. A healthy finance is usually a high profit ratio. A partially set finance is usually a high profit ratio. A totally done finance is usually a high profit ratio.

18. 13. Financial leverage ratio is about the debts. How the ratio checks on debts? Checks on debts ask. Checks on debts bill. Checks on debts halt. Checks on debts paid. 14. Apply the Gross Margin Ratio on the two-day transactions of Cocone Nut Oil. The materials cost is Php 1,800.00 and Sales amounted to Php 3,800. How much is the Gross Margin Ratio? 0.52 0.53 0.54 0.56

19. 15. Apply Debt to Asset Net Profit Margin on the two-day transactions of Cocone Nut Oil. The materials cost is Php 1,800.00, phone card cost is Php 350.00, and Sales amounted to Php 3,800. How much is the Net Profit Margin? 0.19 0.20 0.21 0.22