Income Statement

DECEMBER 06 DECEMBER 07

SALES 1,500 1,800

COST OF SALES 1,000 1,000

GROSS PROFIT 500 800

REVENUE 1,000 (tentative)

Operating Expenses: Amount:

Condensed Milk (500g) 90 pesos
3-4pcs
Condensed Milk Ube Flavor 45 pesos
(250g)
Butter 30 pesos
Cocoa Powder 175 pesos
Vanilla extract (1 bottle) 40 pesos
Oreo Biscuits (1 pack) 84 pesos
Sprinkles 35 pesos
Chocolate Chips 76 pesos
Mini Marshmallows 40 pesos
Cupcake pa liners (100 200 pesos
pieces)
Logo’s design expenses 75 pesos
TOTAL EXPENSES: 1,000.00
PROFIT: 1,000 (tentative)

SUBTOTAL: 2,000.00

Cash Flow Statement

For the weekending : 12/07/23

Cash at the beginning of the week : 1,000 pesos
Cash Receipts from the costumers 1,800
Cash paid for inventory 1,000
Cash receipt from ingredients 2,000
 ROI (Return of Investment):
Connection to a Rational Function

The return on investment (ROI) is a key financial metric used to evaluate the
profitability and performance of an investment. It is calculated by dividing the net
profit from an investment by the initial cost of the investment, and is typically
expressed as a percentage. Understanding the behavior of a rational function can
provide insights into how the ROI of an investment might evolve over time or
under different conditions.
A rational function is defined as the ratio of two polynomial functions, and
can be expressed in the form f(x) = P(x) / Q(x), where P(x) and Q(x) are
polynomial functions. The behavior of a rational function is characterized by its
domain, range, asymptotes, intercepts, and end behavior. By relating the concepts
of rational function behavior to ROI, we can draw parallels that can help us
understand how changes in investment conditions or variables may affect the ROI.
One way to draw a connection between ROI and rational function behavior
is to consider the interplay between input variables and output results. In the case
of ROI, the input variables could include factors such as initial investment amount,
holding period, cash flow projections, and discount rate. The output result is the
ROI, which indicates the efficiency and profitability of the investment. Similarly,
in a rational function, the input variable is typically represented by the independent
variable (x), and the output is the dependent variable, determined by the function's
behavior and properties.

Domain and Range: In the context of rational functions, the domain and range
represent the set of input values and output values, respectively, that the function
can take. Similarly, in the case of ROI, the domain might represent the range of
possible input variables such as different investment amounts or time periods,
while the range measures the possible ROI values based on different investment
scenarios. Understanding how changes in input variables affect the domain and
range of a rational function can be analogous to understanding how changes in
investment conditions influence the potential range of ROI outcomes.

Asymptotes: Rational functions may have vertical, horizontal, or slant asymptotes

where the function approaches a certain value but never reaches it. In the context
of ROI, asymptotic behavior can be seen as representing limits or constraints on
the potential ROI. For example, a vertical asymptote for a rational function could
be compared to a situation where an investment has a maximum potential ROI due
to market conditions or industry standards, beyond which it cannot increase.
Understanding the presence and behavior of asymptotes in rational functions can
therefore provide insights into the limits or boundaries of ROI under certain
investment conditions.
Intercepts: Rational functions may have x-intercepts and y-intercepts, which can
provide important information about the behavior of the function. In the context of
ROI, x-intercepts could represent specific points where changes in input variables
result in a zero ROI, signaling potential investment break-even points or
thresholds. Similarly, y-intercepts might reflect the initial ROI at the beginning of
the investment period, providing a starting point for analyzing how the ROI
changes over time. Understanding how intercepts manifest in rational functions can
help investors anticipate critical points in the ROI curve based on different
investment parameters.

End Behavior: Rational functions also exhibit end behavior, which describes the
function's long-term output as the input variable approaches positive or negative
infinity. This aspect can be related to the long-term performance or sustainability
of an investment, reflecting how the ROI may evolve as the investment horizon
extends. Analyzing the end behavior of rational functions can help investors
anticipate how the ROI might trend over time under different investment scenarios,
providing valuable insights for long-term investment planning.
By drawing parallels between the behavior of rational functions and the dynamics
of ROI, investors can gain a deeper understanding of how different investment
conditions and variables influence the profitability and performance of their
investments. Understanding the domain, range, asymptotes, intercepts, and end
behavior of a rational function can provide a conceptual framework for anticipating
and analyzing the behavior of ROI under various scenarios, ultimately contributing
to more informed investment decision-making.

The field of finance encompasses a wide range of concepts and applications,

and there are several connections between finance and the study of rational
functions. Rational functions, which are expressed as the ratio of two polynomial
functions, exhibit various behaviors that can be related to financial principles and
phenomena. By exploring these connections, we can gain insights into how
concepts from the study of rational functions can be applied to financial analysis
and decision-making.
One fundamental connection between finance and rational functions lies in the
concept of risk and return. In finance, the trade-off between risk and return is a
central consideration for investors. Rational functions can provide a framework for
understanding this trade-off by exploring the relationship between input variables
and output results. The behavior of rational functions, including their asymptotic
properties and end behavior, can be related to the risk-return trade-off in the
context of investment analysis and portfolio management.
Risk and Return: Rational functions can be used to model the risk-return profile of
investments. By considering the domain and range of a rational function, investors
can analyze the range of potential returns (output) for a given level of risk (input).
This can help in understanding how changes in risk factors, such as volatility or
market conditions, may impact the potential return on an investment. Additionally,
the presence of asymptotes in rational functions can be analogous to the limits or
constraints on potential returns, reflecting the inherent risk associated with certain
investment opportunities.

Portfolio Management: Rational functions can also provide insights into portfolio
diversification and asset allocation strategies. In finance, investors often seek to
construct portfolios that optimize the risk-return trade-off. Rational functions can
be used to model the behavior of different assets or investments within a portfolio,
allowing investors to analyze how the combination of assets affects the overall risk
and return profile of the portfolio. Understanding the behavior of rational
functions, including their intercepts and end behavior, can help investors make
informed decisions about allocating capital across different assets to achieve
specific risk and return targets.

Interest Rates and Bond Pricing: The behavior of rational functions can be related
to the pricing of financial instruments, particularly bonds. Rational functions can
model the relationship between interest rates and bond prices, helping investors
and analysts understand how changes in interest rates impact the value of fixed-
income securities. By examining the behavior of rational functions in the context
of bond pricing models, investors can gain insights into how bond prices fluctuate
in response to shifts in interest rates, and how these dynamics influence investment
decisions.

Option Pricing and Derivatives: Rational functions are also relevant to the pricing
and valuation of options and other derivatives. In finance, option pricing models
such as the Black-Scholes model utilize the principles of rational functions to
determine the fair value of options contracts. The behavior of rational functions,
including their asymptotic properties and end behavior, can be applied to
understand the dynamics of option pricing and how changes in variables such as
volatility, time to expiration, and underlying asset prices influence option values.

Capital Budgeting and Investment Analysis: Rational functions can provide a

framework for analyzing capital budgeting decisions and investment projects. In
finance, the principles of rational functions can be applied to model cash flow
patterns, discount rates, and project timelines, allowing analysts to evaluate the
financial feasibility of potential investments. By understanding the behavior of
rational functions, including their domain, range, and intercepts, financial
professionals can assess the potential returns and risks associated with different
investment opportunities, supporting decision-making processes related to capital
allocation and project selection.

Overall, the study of rational functions offers valuable insights and tools that can
be applied to various areas within the field of finance. By drawing connections
between the behavior of rational functions and financial concepts such as risk and
return, portfolio management, bond pricing, option valuation, and investment
analysis, practitioners can leverage the principles of rational functions to enhance
their understanding of financial phenomena and make more informed decisions in
the management of investments and financial assets

Chart of The FINANCIAL STATEMENT

(December 06 - December 07)
Promotion of Product Sales Gross Profit
6

0
D ec em b er 0 6 , 2 0 2 3 D ec em b er 0 7 , 2 0 2 3

As you can see in this graph we have our sales target which is still tentative for it's
still ongoing. The profit is more likely the asymptote in our graph, we will target
the better sales profit. In mathematical terms, an asymptote represents a line that a
curve approaches but never reaches.
When referring to profit, you might consider an asymptote as a theoretical limit or
trend that the profit margin approaches but may not surpass in the long run.
Analyzing profit asymptotes can provide insights into sustainable growth and
business performance. If you have specific data or parameters, we can explore this
concept further.
In the context of profit, zeroes typically refer to points where the profit function
equals zero. These are often associated with break-even points, where revenues
equal costs, resulting in neither profit nor loss.
Analyzing the zeroes of the profit function is crucial for identifying critical points
in a business operation. For example, finding when profit is zero helps determine
the minimum level of revenue needed to cover costs. Understanding these points
can guide business decisions, pricing strategies, and overall financial planning.
If you have specific data or equations related to your profit function, I can help you
further explore the implications of zeroes in the context of your business.

Note to financial statement

Notes to financial statements: The accompanying financial statements have

been prepared in accordance with generally accepted accounting principles.
Note that these statements include management's best estimates and judgments,
which may affect the reported amounts of assets, liabilities, revenues, and
expenses. Readers are encouraged to review the notes for additional information on
specific accounting policies and significant transactions.
The profit still tentative for us to sales more to have the best profit too.