Microsoft Word - ACT205_assign_S121 Page 1 of 6 Asia Pacific College of Business and Law XXXXXXXXXXACT205 Accounting for Managers XXXXXXXXXXSemester 1, 2021 Submission Requirements. UNIT CODE: ACT205...

Microsoft Word - ACT205_assign_S121
Page 1 of 6
Asia Pacific College of Business and Law XXXXXXXXXXACT205 Accounting for Managers XXXXXXXXXXSemester 1, 2021












Submission
Requirements.
UNIT CODE: ACT205
UNIT NAME: ACCOUNTING FOR MANAGERS
Assignment Information
Semester 1 2021
Assessment 45%
The assignment is to be submitted before 23.59pm Monday 7th June 2021 in Week 14

 The assignment must be lodged online via the ACT205 Learnline Assignment
Lodgement link on the ACT205 Learnline site
 Assignment should be typed. Only word docs and/or Excel converted to pdf will be
acceptable. Handwritten answers will be rejected.
DO NOT LODGE BY FAX nor EMAIL nor at LECTURER'S OFFICE KEEP A COPY

 The assignment must be lodged on or before the due date indicated in the assignment details.
 The assignment must conform to the requirements set out in this assignment
 Ensure your file is named using a file naming convention that allows the lecturer to identify to
whom it belongs. Failure to use an acceptable file naming convention may result in your
assignment lodgement being rejected.
 Assignment lodgements will be acknowledged automatically on the Learnline site, on submission.
 DO NOT submit an assignment front sheet.
 KEEP A COPY - Ensure you have a copy of the assignment lodged. If you have submitted
assessment work electronically, please make sure you have a backup copy.

Resubmission
As a general rule resubmission of assessment items is NOT possible, however the Lecturer
may ask for resubmission if it is deemed appropriate. Details for such resubmission will be
made available by the Lecturer if and when the situation occurs.

University Plagiarism policy
Plagiarism is the unacknowledged use of material written or produced by others or a rework
of your own material. All sources of information and ideas used in assignments must be
eferenced. This applies whether the information is from a book, journal article, the internet, or
a previous essay you wrote or the assignment of a friend.

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Asia Pacific College of Business and Law XXXXXXXXXXACT205 Accounting for Managers XXXXXXXXXXSemester 1, 2021
Plagiarism policy is available at:
http:
learnline.cdu.edu.au/studyskills/studyskills/avoidingplagiarism.html
and Student Breach of Academic Integrity Procedures
http:
www.cdu.edu.au/governance/docli
ary/pro-092.pdf

Assignments must be submitted by the due date.
EXTENSIONS AND LATE LODGEMENTS

LATE ASSIGNMENTS WILL GENERALLY NOT BE ACCEPTED UNLESS AN
EXTENSION TO THE DUE DATE HAS BEEN GRANTED BY THE BUSINESS
ADMINISTRATOR.


Exceptions will only be made where assignments are late due to special circumstances that
are supported by documentary evidence and may be subject to a penalty of 5% of
assignment marks per day. Partially completed assignments will be accepted with
appropriate loss of marks for the incomplete portion.

Should students foresee potential difficulties with submission of assessment items, they
should contact the lecturer immediately the difficulties come to notice, to discuss suitable
a
angements etc. for the submission of those assessment times. An Application for
Assignment Extension or Special Consideration should be completed and provided to
XXXXXXXXXX.
This application form, explanation and instructions is available on the ACT205 CDU
Learnline course site or direct from
http:
learnline.cdu.edu.au/units/lb_school_templates/deployed/assignment_extension.docx

Please note that it is now College policy that all extension requests must be approved by
the Business Administrator. The lecturer is no longer able to personally approve extension
equests.
Leaving a request for an extension, special assessment or special consideration until the last
moment, based on grounds that students could have reasonably been able to foresee, may result
in the application being rejected.

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Asia Pacific College of Business and Law XXXXXXXXXXACT205 Accounting for Managers XXXXXXXXXXSemester 1, 2021
Question One
Jeremy is a manager employed by Fast Track Door Stop Pty Ltd. He is wo
ied that
the company’s cash position is not as strong as it should be as whenever he pays the
trade accounts payables the business is short of cash.

He has asked you to look at how long it takes to collect the accounts receivables and
what the size of the average accounts receivables would be if the company was able
improve the collection period so that it was less than the payment period for payables
of 30 days. He thought that a collection period of 28 days would be reasonable. All
sales are on credit terms.

He also believes that the inventory stays too long in the company’s warehouse and
that the cash flows would be improved if inventory could be turned around in a shorter
period thereby lessening the stockholding costs and improving cash flow. He thinks
that a target turnaround of 30 days should be achievable.

The following data was extracted from the financial statements

Fast Track Door Stop Pty Ltd
Profit and Loss Account (Extract)
for the year ended 30th June 2021
Net Sales $1,390,318
Cost of sales 851,666

Fast Track Door Stop Pty Ltd
Statement of Financial Position (Extract)
As at 30th June
XXXXXXXXXX2020
Cu
ent assets
Accounts receivable $191,800 $143,400
Inventory 119,400 76,600

Required

Advise Jeremy about:

a) The cu
ent collection period for accounts receivables and what the projected average
accounts receivables would be if the collection period was reduced to 28 days.

) The benefits and risks associated with a reduced accounts receivable collection
period.
c) The methods that the credit control department can employ to improve the collection of
accounts receivables.
d) The time that the inventory cu
ently stays in the warehouse and what the average
inventory value would be if Jeremy’s target of 30 days was met.

e) The benefits and risks associated with a reduced inventory holding period.
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Asia Pacific College of Business and Law XXXXXXXXXXACT205 Accounting for Managers XXXXXXXXXXSemester 1, 2021
(Total 8 marks)
Question Two

Nimh and Alan run a micro
ewery in Darwin. They have estimated their cash receipts
and payments for the quarter ending 30th September 2021.

July August September
Receipts
Sales $132,000 $154,000 $188,000
Sale proceeds of old fermentation
tanks
65,000
Payments
Ingredients 34,000 39,100 47,900
Brewer’s wages 10,000 10,000 10,000
Salaries and retail staff wages 35,000 39,000 45,000
Replacement fermentation tanks 132,500
Rent and administration expenses 20,000 20,000 20,000

At the 30th June 2021 the business had a bank balance of $38,900.

Required:

a) Prepare a cash budget for July, August and September 2021 identifying the
monthly total receipts, total payments and the anticipated closing bank balance at
the end of each month.

) Nimh and Alan have been looking at the opportunity for expansion of their
usiness. At the moment they are replacing the old equipment but are considering
the purchase of additional fermentation tanks with a larger capacity in the future in
three to four years’ time.

They would like advice about leasing the replacement tanks instead of buying them
outright in July and how this could affect their projected cash flow and the flexibility
of their options. They have advised you that the monthly lease payments would be
$11,500 per month.

Prepare an amended cash budget to reflect a leasing agreement instead of an
outright purchase of the replacement fermentation tanks.
(Total 15 marks)










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Asia Pacific College of Business and Law XXXXXXXXXXACT205 Accounting for Managers XXXXXXXXXXSemester 1, 2021

Question Three

Beautiful Pets Pty Ltd manufactures a range of pet shampoos which includes three
products, Pampered Pooch dog shampoo, Cutie Kitty cat shampoo and Itchy Gone
flea shampoo. Their projected sales and cost data for 2022 based on past practice
are as follows:

Pampered Pooch Cutie Kitty Itchy Gone
Sales mix (400,000 units) 100,000 140,000 160,000
Selling price $32 $44 $28
Variable cost per unit XXXXXXXXXX
Total fixed costs $645,150



Required:

a) Calculate the
eak-even point in total units and units per product for the 2022
projections.

) Calculate the before tax profit (loss) for 2022 based on these projections.

c) A competitor has been increasing their market share and the management team at
Beautiful Pets Pty Ltd are keen to change their focus and at the same time
increase their profit before tax.

They have suggested that they should concentrate on the product with the highest
contribution margin and propose changing the sales mix to 20% Pampered Pooch,
50% Cutie Kitty and 30% Itchy Gone whilst maintaining the same total sales of
400,000 units. This initiative would increase fixed costs by $65,050.

Advise management whether this proposal will increase profit before tax, any
changes to the
eak-even point in total units and units per product, and any other
observations that you