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</o:p> B. ASSESSMENT ACTIVITY: RESEARCH (200 WORDS)</o:p>...

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B. ASSESSMENT ACTIVITY: RESEARCH (200 WORDS)


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. (50 WORDS)

2. Explain and find one (1) example of a Bilateral or Regional Trade Agreement (25 WORDS)

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3. Explain the Trade Practices Act. What is it? Who does it apply to? (50 WORDS)

5. What does International Commercial Terms (INCOTERMS) mean? (25 WORDS)

6. Explain what the role of the following: World Trade Organization (WTO) (25 WORDS)

7. What is GST(Goods and Services Tax and how is it calculated )? 25 WORDS)

PART C: (250 WORDS)

1. Prepare a Profit & Loss Statement and Balance Sheet using the information given below. (125 WORDS)

2. Explain how the business is affected by the completed Profit and Loss Report. (125 WORDS)

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)

$10,480

Answer 1:

Profit and Loss Statement

$

$

BALANCE SHEET

Assets

$

Liabilities

$

Total Liabilities

Proprietorship/Owner’s Equity

Total

Total

Answer 2:

PART D: (250 WORDS)

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: (50 WORDS)

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. (50 WORDS)

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? (50 WORDS)

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? (100 WORDS)

PART E: (500 WORDS)

Task 1: Cash budget: service industry (250 WORDS)

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 $ XXXXXXXXXXDr 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 $ XXXXXXXXXXactual)

June $ XXXXXXXXXXactual)

July $ XXXXXXXXXXbudget)

August $ XXXXXXXXXXbudget)

September $ XXXXXXXXXXbudget)

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 (250 WORDS)

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 $60000

The forecast sales for the next four months are:

May $70 000; June $80 000; July $80 000; August $80000

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

1. 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)

2. 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)

3. Recommendation:

PART F: (400 WORDS)

Task 1 You are required to research, identify and evaluate available financial management software applications for implementation in a small business or enterprise. (200 WORDS)

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

For this response, it is essential that you develop something more than a common-sense approach.

Your plans need to be supported by wide-ranging research, providing a strong rationale for changes and recommendations proposed.

Task 2: CREATE AND WRITE A FORMAL BUSINESS PLAN (200 WORDS)

BRIEF

Develop a formal business plan for a small business or enterprise nominated by your Trainer and Assessor.

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.

Answered Same DayMar 04, 2020

Solution

Pulkit answered on Mar 07 2020
63 Votes
B. ASSESSMENT ACTIVITY: RESEARCH (200 WORDS)
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. (50 WORDS)
    The Australian Tax Office provides administrative and technical support services to the taxpayers.
    It also provides forums and consultations to the taxpayers.
    It keeps the taxpayers and professionals with news updates and alerts.
    It helps the tax professionals to enhance their knowledge by providing them access to webcasts and videos on a regular basis.
2. Explain and find one (1) example of a Bilateral or Regional Trade Agreement (25 WORDS)
    A bilateral or regional trade agreement is signed between two or more countries that promote inter trade between them. One example of such agreement if China Australia Free Trade Agreement (CHAFTA).
    
    
    
3. Explain the Trade Practices Act. What is it? Who does it apply to? (50 WORDS)
    Trade Practices Act is the legislation that facilitates implementation of competition law in Australia. It promotes fair trade, competition and protection to consumers. It ensures that businesses do not engage in restrictive or unfair trade practices.
    The Trade Practices Act applies to consumers and business which are registered in Australia.
    
    
    
5. What does International Commercial Terms (INCOTERMS) mean? (25 WORDS)
    International Commercial Terms (INCOTERMS) are a published series of commercial terms which is laid down by International Chamber of Commerce i.e., ICC. ICC has trademarked INCOTERMS.
    
    
    
    
6. Explain what the role of the following: World Trade Organization (WTO) (25 WORDS)
    The role of World Trade Organization is to ensure that flow of trade between the nations is smooth, free and predictable as much as possible.
    
    
    
7. What is GST(Goods and Services Tax and how is it calculated )? 25 WORDS)
    Goods and Services Tax (GST) is an indirect tax which is collected on supply of goods or services. This is collected by the seller from the consumer and paid to government.
    
    
PART C: (250 WORDS)
1. Prepare a Profit & Loss Statement and Balance Sheet using the information given below. (125 WORDS)
2. Explain how the business is affected by the completed Profit and Loss Report. (125 WORDS)
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 Ru
ish 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)
    
$10,480


Answer 1:
    Profit and Loss Statement
    
    
    
    $
    $
    Revenues:
     
     
    Food Sales
    25000
     
    Beverage Sales
    42000
     
    Rooms Sales
    33000
     
    Conference Sales
    45000
     
    Total Revenues
     
    145000
    Expenses:
     
     
    COGS
     
     
    Opening Stock Food
    10000
     
    Food Purchase
    20000
     
    Closing Food Stock
    -20000
    10000
    Opening Beverage
    25000
     
    Beverage Purchase
    40000
     
    Closing Beverage Stock
    -25000
    40000
    Advertising
     
    1200
    Rates (Council Fees for emptying Ru
ish Bins, Landscaping and Street Cleaning)
     
    1500
    Decorations (Christmas Trees or Flowers for Table Centre Pieces)
     
    700
    Repairs and Maintenance
     
    2300
    Laundry
     
    2900
    Office Supplies (Pens, Stationary)
     
    2500
    Insurance
     
    1500
    Wages
     
    58000
    Total Expenses
     
    120600
     
     
     
    Profit
     
    24400
     
     
     

    BALANCE SHEET
    
    
    
    
    
    
    
    Assets
    $
    Liabilities
    $
    Cu
ent Assets
     
    Cu
ent Liabilities
     
    Cash in Bank
    38866
    Accounts Payable
    10000
    Accounts Receivable (A/R)
    10480
     
     
    Closing Food Stock
    20000
     
     
    Closing Beverage Stock
    25000
     
     
    Linen & Glassware
    510
     
     
    Liquo
    2558
     
     
    Food
    4996
     
     
     
     
     
     
    Fixed Assets
     
     
     
    Equipment
    5200
     
     
    
     
    Total Liabilities
    10000
    
     
    Proprietorship/Owner’s Equity
    97610
     
     
    
     
    Total
    107610
    Total
    107610
    
    
     
    


Answer 2:
Profit and Loss report also called as Statement of Profit and Loss is a financial statement that lays down the performance of a business. From the profit and loss report prepared here it can be stated that the company is able to generate decent numbers in revenues and the profit of $24400 is being generated. Although there is quite good margin in sales of food, rooms and conference but same is not the case in beverage sales. The total revenue generated from beverage sales is $42000 only for which Cost of Goods sold is $40000. Thus the margin is quite low in this variant. The company can focus either on increasing the profit margin in this segment or if possible it should consider cutting down the costs incu
ed.

PART D: (250 WORDS)
Q1. Professional ethics is the application of ethical principles by professionals who have an obligation to those who rely...
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