RECENT ASSIGNMENT

Between 2500-3000 words
Student Name: Student ID:
Assessment Type: Assignment Other:
Assessor’s Name:
Assessment Outcome: ? Satisfactory ? Not Yet Satisfactory
Student Declaration: By submitting this assessment via Moodle, I declare that this is my own work and had not been copied or plagiarised from any other source. Please refer to the Student Handbook for more information.
Assessment Conditions: Each assessment criteria is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only achieve a ‘Satisfactory’ Assessment Outcome for the entire assessment when all assessment Criteria listed below are ‘Satisfactory’. A student who is assessed as ‘Not Yet Satisfactory’ is eligible for re-assessment with their trainer.
All assessment answers must be typed, include this assessment cover sheet and uploaded in ‘WORD’ version to moodle.
Assessment Criteria
Element Performance Criteria S
Develop and use emotional intelligence
1 Plan for financial management 1.1 Review and analyse previous financial data to establish areas which have generated a profit or loss ?
1.2 Undertake research to review reasons for previous profit and loss ?
1.3 Review business plan to establish critical dates and initiatives that will require or generate resources in the next financial cycle ?
1.4 Analyse cash flow trends
1.5 Review statutory requirements for compliance and liabilities for tax ?
1.6 Review existing software and its suitability for financial management ?
2 Establish budgets and allocate funds 2.1 Use previous financial data to determine allocations for resources ?
2.2 Make informed estimates of new items for inclusion in budget ?
2.3 Prepare budgets in accordance with organisational requirements and statutory requirements ?
3 Implement budgets 3.1 Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations ?
3.2 Manage risks by checking there are no opportunities for misappropriation of funds and that systems are in place to properly record all financial transactions ?
3.3 Review profit and loss statements, cash flows and ageing summaries ?
3.4 Revise budgets, as required, to deal with contingencies
3.5 Maintain audit trails to ensure accurate tracking and to identify discrepancies between agreed and actual allocations
3.6 Ensure compliance with due diligence
4 Report on finances 4.1 Ensure structure and format of reports are clear and conform to organisational and statutory requirements S
4.2 Identify and prioritise significant issues in statements, including comparative financial performances for review and decision making
4.3 Prepare recommendations to ensure financial viability of the organisation ?
4.4 Evaluate the effectiveness of financial management processes ?
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FINANCIAL MANAGEMENT: ASSESSMENT
WEEK 2 (20 marks)
ASSESSMENT ACTIVITY: SHORT ANSWER RESPONSES
1. Describe at least one (1) business that is profitable and explain why you think it is enjoying financial success.
2. While the evidence suggests otherwise, there is a common view that many new businesses fail within the first year of operation. Why do you think a new business might not succeed?
3. Explain the following fundamental accounting concepts:
? Business Entity Concept
? Dual Aspect Concept
? Money Measurement Concept
4. Explain the following fundamental accounting concepts:
? Objectivity Concept
? Going Concern Concept
? Periodicity Concept
5. Explain the following fundamental accounting concepts:
? Cost Concept
? Conservatism Concept
? Materiality Concept
6. Explain the following fundamental accounting concepts:
? Realisation Concept
? Matching Concept
? Full Disclosure Concept
7. Provide four (4) examples of investment decisions
8. Provide five (5) examples of financing decisions
9. Provide three (3) examples of financial management decisions.
10. Explain the difference between financial accounting and management accounting.
11. Provide five (5) examples of ratios that can be used for analysis and what they mean
12. Provide the formulas for the following ratios:
? Gross Profit
? Net Profit
? Inventory Turnover Ratio
? Debt to Assets Ratio
? Return on Investment
WEEK 3 (20 marks)
ASSESSMENT ACTIVITY: RESEARCH
1. Research the following website http://ato.gov.au/ and summarize the services, facilities and products the Australian Tax Office provides for individuals and business.
2. Explain and find one (1) example of a Bilateral or Regional Trade Agreement
3. Explain the Trade Practices Act. What is it? Who does it apply to?
4. Explain the following key Australian Taxation requirements:
? PAYG Withholding
? Company Tax
? Goods and Services Tax (GS.)
? Financial Probity
? Australian Business Number (A.B.N)

? Business Activity Statement (B.A.S)
? Superannuation
? Fringe Benefits Tax (F.B.T)
? Income Tax
5. What does International Commercial Terms (INCOTERMS) mean?
6. Explain what the role of the following: World Trade Organization (WTO)
7. What is GST(Goods and Services Tax and how is it calculated )?
WEEK 4 (20 marks)
1. Prepare a Profit & Loss Statement and Balance Sheet using the information given below.
2. Explain how the business is affected by the completed Profit and Loss Report.
From the following financial Information Prepare a Profit & Loss Statement and Balance Sheet;
Food Sales
$25 000
Beverage Sales

$42 000
Rooms Sales
$33 000
Conference Sales

$45 000
Opening Food Stock
$10 000
Food Purchase

$20 000
Closing Food Stock
$20 000
Opening Beverage
$25 000
Beverage Purchase
$40 000
Closing Beverage Stock
$25 000
Advertising
$1 200
Rates (Council Fees for emptying Rubbish Bins, Landscaping and Street Cleaning)
$1 500
Decorations (Christmas Trees or Flowers for Table Centre Pieces)
$700
Repairs & Maintenance
$2 300
Laundry
$2 900
Office Supplies (Pens, Stationary)
$2 500
Insurance
$1 500
Wages
$58 000
Cash in Bank
$38 866
Retained Earnings for Previous Year
-$41 790
Linen & Glassware
$510
Liquor
$2 558
Food
$4 996
Equipment
$5 200
Accounts Payable
$10 000
Capital
$70 000
Accounts Receivable (A/R)
$480
3. Referencing the Accounting equation, for the following figures complete a Balance Sheet
Inventory: Food

$25,000
Inventory: Beverage

$23,800
Bank Loan

$15,500
Furniture & fittings

$12,000
Trade Debtors

$18,300
Bank Account
$7,500
Computers
$8,000
Petty Cash
$1,200
GST payable

$895
Buildings & Improvements
$9,500
Trade Creditors

$9,500
BALANCE SHEET TEMPLATE
Assets $ Liabilities $

Total Liabilities

Proprietorship/Owner’s Equity

Total

Total
Week 5: (10 marks)
ASSESSMENT ACTIVITY: RESEARCH
Q1. Professional ethics is the application of ethical principles by professionals who have an obligation to those who rely on their services. Give examples of professional care:
Q2. Codes of ethics are the most concrete form of communication by which professions acknowledge their obligations to society. The role of a financial manager involves discharging one’s responsibilities while ensuring compliance with all the obligations espoused in the code of ethics. Give an example how a financial manager can apply code of ethics on making decisions.
Q3. What are “Business Ethics” and Professional “Ethics”?
Q4. What is Integrity?
Q5. How often does an organization need to perform an audit trail to make sure all transactions are recording with due diligence? How does integrity play a big role in this section?
Q6. CASE STUDY:
You have been the finance director of a clothing retailer for ten years. The company’s yearend is 30Th June, and you are finalising the year end accounts. You have recently been advised by the warehouse manager of a significant level of slow moving stock. The stock in question is now more than nine months old and would normally have been written down some months previously. The shareholders are trying to sell the company, and the managing director (the majority shareholder) has told you that it is not necessary to write down the stock in the year end accounts. You are sure that the managing director wants the financial statements to carry an inflated stock valuation because he has found a prospective buyer. The managing director has indicated to you that, if the proposed deal is successful, all employees will keep their jobs and you will receive a pay increase.
What would you do?
Week 6: Cash Budget and Debt Collection (10 marks)
TASK 1: Cash budget: service industry
Dr Healer is the manager of a medical clinic and is concerned about the cash flow shortages which arose somewhat unexpectedly recently in the practice. At 30 June the bank account showed an overdraft of $50 000. Dr Healer believes that the cash flow problems stem from lack of attention to outstanding patient accounts and the purchase of expensive medical supplies in large quantities at irregular intervals.
The good doctor has asked you to help design a spreadsheet to investigate the cash flow problems. You discover the following data:
Revenue:
May $120 000 (actual)
June $145 000 (actual)
July $50 000 (budget)
August $150 000 (budget)
September $140 000 (budget)
Past experience shows that 40% of the consultation revenue is collected in the month of the visit, 30% in the following month, 20% in the second month after the visit, and 10% was never collected.
From July new credit policies are expected to result in a collection pattern of 60%, 20%, 10% and 10% respectively.
The cost of medical supplies was $40 000 in June and is budgeted for $60 000 in August. Half of the suppliers’ accounts are paid in the month incurred and half in the following month. Salaries of $40 000 per month and other costs of $25 000 per month are paid in the month incurred.
Required:
1. Prepare a cash budget for the 3 months, July to September to examine the cash flows projections (Use the spreadsheet template to prepare the cash budget).
2. You are aware that there are some suppliers’ payment due in July and August. What relevant personnel you are required to discuss/negotiate the possible cash shortfall?
3. What possible contingency plan you can implement to avoid the forecasted cash flow shortfall
TASK 2: Alternative debt collection policies
As the manager of Corby and Danes Ltd, you are concerned about the current collection policy from credit customers. The current policy is that all sales are to be made on credit, with the expectation that 70% of all accounts receivable are collected in the month immediately following the sale: 20% in the second month, 8% in the third month, and the balance written off as bad.
The actual sales for the four months January to April were as follows:
January $40 000; February $50 000; March $60 000; April $60 000
The forecast sales for the next four months are:
May $70 000; June $80 000; July $80 000; August $80 000
You need a report that will show how much cash you can expect to collect each month from accounts receivable for the period February to August. You also like to know what the cash flow patterns would be if either of the two policies below were to be adopted from now (ie from May) on.
Alternative policy:
80% of the accounts receivable to be collected in the month following the sale, 10% in the second month, 8% in the third month and the balance written off as bad.
Required:
1. Show what the existing report on cash collection from accounts receivable looks like.
2. Show how the additional reports revealing the cash flow situation under the proposed alternative policy would look.
3. After analysing the data which policy you would recommend to improve the collection process for the month of May, June and July?
Current policy:
Collections from accounts receivable
Feb Mar Apr May June July Aug
$ $ $ $ $ $ $
From sales in:
Jan ($40 000)
Feb. ($50 000)
Mar. ($60 000)
Apr. ($60 000)
May ($70 000)
June ($80 000)
July ($80 000)
Alternate policy:
Collections from accounts receivable
Feb Mar Apr May June July Aug
$ $ $ $ $ $ $
From sales in:
Jan ($40 000)
Feb. ($50 000)
Mar. ($60 000)
Apr. ($60 000)
May ($70 000)
June ($80 000)
July ($80 000)
Week 7: Business Plan (20 marks)
TASK. RESEARCH & CREATE AND WRITE A FORMAL BUSINESS PLAN
You are required to research, identify and evaluate available financial management software applications for implementation in a small business or enterprise.
As a foundation to support your research and evaluation you are to prepare and deliver a written response addressing the following key criteria:
? Price
? Usability
? Features and Functions
? Suitability
? Compatibility with other Software Applications
? Technical Support
? Training Opportunities
? Pros and Cons
? Your own personal Recommendations
Develop a formal but brief business plan (within 1500 word limit) for a small business or enterprise. To demonstrate competency, you will need to consider in your analysis the capabilities and resources of the new enterprise, vision, mission, trends and developments in the marketplace, comparative market information, and legal and ethical restraints on the proposed business activity.
BUSINESS PLAN REQUIREMENTS
For this report, it is essential that you develop something more than a common-sense approach.
Your plan will need to be supported by wide-ranging research, providing a strong rationale for changes proposed.
The business plan or project plan must present a comprehensive and logical position which is followed through with control measures for implementation and review.
Key benchmarks to address and include in your presentation and business plan are as follows:
? Analyse and interpret business vision, mission, values and objectives
? Analysis of the strengths and weaknesses of a range of business plans
? Implementation of a business plan including evaluation of performance against documented indicators in key results areas
? Consult with key stakeholders to develop performance objectives and measures through consultation with key stakeholders
? Review market requirements for the product or service, profile customer needs and research pricing options
? Identify financial, human and physical resource requirements for the business
? Consider any permits or licenses that may be required for new activity
? Knowledge of performance measurement approaches and benchmarking
? Your business plan will need to cover all core aspects of business planning, including marketing, financial, human resource, risk management and operational planning.
? Legal and insurance issues should be reviewed and corresponding recommendations made for legal compliance embedded in your plan.
? Finally, the business plan should provide a forecast for the long-range direction of the business and its strategic success.
RELEVANT INSTRUCTIONS
1. The analysis and strategy demonstrates a knowledge and understanding of relevant business, management or industry theory.
2. Evidence of critical thinking in preparing the responses for the Business Plan
3. The strategy is incisive and includes a concise, relevant treatment of the issues and addresses the assessment criteria.
4. The strategy critically discusses and analyses the topic, range statement, performance criteria and foundation skills of the unit descriptor
5. All sources are referenced consistently and comprehensively using the recommended referencing system as prescribed in the subject description/outline.
6. Use of language is appropriate to academic writing, the industry context, Business Planning, Marketing, Human Resource Management principles, Financial Planning, Risk Management themes and the assessment criteria
7. The responses are succinctly and clearly written or presented in English
8. Overall presentation is professional including spell and grammar checked judicious use of headings, font size, layout etc.