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...

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;

Answer 1:

Profit and Loss Statement

BALANCE SHEET

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:

2. Alternate policy:

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.