Assessment 1
Analysis of Financial statements and plan report
Business Context
· Write a detail description of the business
Financial Statements
· Insert Financial Statements such as Profit and Loss Statement and Balance Sheet of the company you select. It is suggested to select a Listed Company with Audited Accounts.
· You have to write a statement whether the company is following compliance industry practice in term of making financial statements,
· Provide approval Evidence from the trainer assessor to work further on the financial statements.
Ratio Calculations
Calculate the following ratios:
· Cu
ent Ratio
· Quick Ratio
· Net Working Capital Ratio
· Receivables Turnover
· Inventory Turnover
· Debt Ratio
· Debt‐to‐Equity Ratio
· Gross Margin
· Operating Margin
· Net Margin
· Return on Assets (ROA)
· Return on Equity (ROE)
Business Financial Performance bases on Ratio Analysis
Interpret each calculated ratio
Business Financial Potential and Low Performance Areas
· Explain financial potential of the business base on the ratio calculated
· Explain the low performance areas reasons base on the ratio calculated
Business future funding requirement
· Explain if the business will need to bo
ow funds. If yes what will be business source to get the funds.
· How much funds will be needing? Support your answer with realistic example
Business’s legal and statutory obligations
· Explain business legal and statutory obligation relevant to the industry its operating.
· Attach those relevant legislation and guidelines or other reference documents to support your answer.
Conclusion
· Write a
ief conclusion of the task
Assessment 2
Cost of Production Budget – Hardwood Products
(for the quarter ending 30th September 2017)
The raw material cost is calculated based on the following cost:
Ash: $150/m
Redwood: $60/m
Pine 2-pack: $30/pack
Assuming Total Manufacturing Overhead is divided evenly between Dinner Table and Buffet.
July
August
Septembe
Total
Dinner Table
Raw Materials
Ash
Pine-2 pack
Total Direct Labour cost
Total Manufacturing Overhead
Total
Buffet
Raw Materials
Redwood
Pine-2 pack
Total Direct Labour cost
Total Manufacturing Overhead
Total
GRAND TOTAL
Describe your finding
Cost of Goods Sold Budget – Hardwood Products (for the quarter ending 30th September 2017)
The Opening and closing inventory of finished goods are calculated based on the following:
Opening July inventory of finished goods will be:
· Dining Tables: (quantity and price)
· Buffets: (quantity and price)
Closing Sept inventory of finished goods is estimated to be:
· Dining Tables: (quantity and price)
· Buffets: (quantity and price)
The opening and closing raw material inventory are calculated based on the following:
Opening July raw materials inventory will be:
· Ash: (length and price per unit)
· Redwood: (length and price per unit)
· Pine 2‐pack: (quantity and price per pack)
Estimated closing September raw materials inventory is expected to be:
· Ash: (length and price per unit)
· Redwood: (length and price per unit)
· Pine 2‐pack: (quantity and price per pack)
Formula: beginning inventory + inventory purchases and expenses - ending inventory = cost of sales, also known as cost of goods sold.
CoGS = Opening inventory of finished goods + Opening raw material inventory + Production cost – Closing inventory of finished goods - Closing raw material inventory
Dining Table ($)
Buffet ($)
Total ($)
Opening inventory of finished goods
+ Opening raw material inventory
+ Production cost
- Closing inventory of finished goods
- Closing raw material inventory
CoGS ($)
Assessment task 3
The selling price is determined based on a mark‐up of 40% over Cost of Goods Sold.
Dining Table
Buffet
CoGS ($)
Sales forecast 1st quarter (units)
75
370
Cost per unit ($)
Selling price per unit after 40% mark-up ($)
Sales budget for Hardwood Products from July to September 2017
July
August
Septembe
Total
Dining Table
Sale forecast
20
30
25
75
Per Unit Selling Price ($)
-
Budgeted Sales ($)
Buffet
Sales forecast
100
150
120
370
Per Unit Selling Price ($)
-
Budgeted Sales ($)
GRAND TOTAL ($)
Cash Budget is based on the following policies;
· The Beginning cash in July is 121,000
· The Budgeted sale for May is _______; June is _______.
· Cash sales 80% in month of sale
· Credit sales 15% with cash received in the month after sale
· Credit sales 5% with cash received in the second month after sale
· Further, a 2% discount is allowed to debtors paying in the month after sale to encourage them to pay promptly.
Cash Budget for Hardwood products from July to September 2017
($)
May
June
July
August
Septembe
Total
Budgeted Sales
2100
10,000
Sources of Cash
Cash Sale
Credit Sale from last month (Discount – 2%)
-
Credit Sale from 2 months prio
-
-
Total Cash
-
-
Assessment Task 4
Sales budget for Hardwood Products from July to September 2017
Insert Answer from Previous Tasks
Cash Budget for Hardwood products from July to September 2017
Insert Answer from Previous Tasks
Cost of Production Budget – Hardwood Products (for the quarter ending 30th September 2017)
Insert Answer from Previous Tasks
Cost of Goods Sold Budget – Hardwood Products (for the quarter ending 30th September 2017)
Insert Answer from Previous Tasks
Operating Expenses Budget for Hardwood Products for the period of July‐September
The variable costs for August and September are calculated based on the assumption that: the variable cost rises by 20% in August and 25% in September to July each year.
Discounts are calculated based on the assumption that a 2% discount is allowed to debtors paying in the month after sale to encourage them to pay promptly. Of those debtors who pay in the second month after sale, 1% has traditionally been bad debts.
July
August
Septembe
Total
Fixed costs ($)
Selling
Depreciation on sales truck
Telephone (Sales dept.)
Salaries (Sales dept.)
Administration
Depreciation on office equip
Insurance (Office)
Salaries (Office)
Telephone (Office)
Total
Variable Costs ($)
Selling
Advertising
Telephone
Wages
Administration
Telephone
Total
Discounts
Budgeted Sales ($)
Credit Sales from previous month
Credit sales from 2 months prio
2% (debtors paying month after the sale)
1% of bad debts (of debtors paying in the second month after the sale)
Total
GRAND TOTAL
Master Operating Budget – Hardwood (Financial year of July 2017- June 2018)
The Master Operating Budget for the WHOLE FINANCIAL YEAR – July 2017 to June 2018 based on the following assumptions;
· Sales are likely to increase by 10% in quarter 2, 12% in quarter 3 and 16% quarter 4 (over quarter 1)
· Raw material costs are going to be increased by8 % across all raw materials each quarte
· Direct labour costs will remain constant throughout the yea
· Factory overheads are likely to increase by 20% each quarter
· Discount levels will remain constant throughout the yea
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Budgeted Sales
Raw material costs
Direct Labour costs
Factory overheads
Discounts
Income Statement for Hardwood Products for the Financial Year of July 2017 – June 2018
*CoGS is assumed to increase by 10% in quarter 2, 12% in quarter 3 and 16% quarter 4 (over quarter 1)
*Expenses are calculated with the assumption that fixed expenses remain constant throughout 4 quarters; variable expenses have a 5% increase over each quarter; Discounts remain constant throughout the year.
*Gross Profit= Total Sales – Cost of Goods Sold
*Net Profit = Gross Profit – Total Expenses
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Sales
851
- CoGS
Gross profit
Fixed
Variable
Discounts
Total Expenses
Net Profit
Report
Budget Objectives
Budget Components
Assumptions used in various budgets
· Cash Budget
· Production Budget
· Operating Expenses Budget
· The Master Operating Budget for the whole financial year – July 2017 to June 2018
· Income Statement
Communicating the budget to the company
Key Milestones and Performance Indicators
Conclusion
Microsoft Word - Learner_BSBFIM601 Manage Finances
BSB61015 Advanced Diploma of Leadership and
Management
BSBFIM601 Manage Finances
LEARNER’S GUIDE
Mode | Classroom Delivery
BSB61015| BSBFIM601 Manage Finances
Learner’s Guide | V 2.0 | Jun 2018
Pass Global Pty Ltd t/a ALTEC College |Provider Code: 22034 | CRICOS Code: 02926D
Approved by: Quality Manager | Next Review: Jun 2019
Page 2 of 32
BSBFIM601 Manage Finances
Supporting: BSB61015 Advanced Diploma of Leadership and Management; May also support other qualifications based on respective packaging rules
© Skillworks Australia Pty Ltd, 2018
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BSB61015| BSBFIM601 Manage Finances
Learner’s Guide | V 2.0 | Jun 2018
Pass Global Pty Ltd t/a ALTEC College |Provider Code: 22034 | CRICOS Code: 02926D
Approved by: Quality Manager | Next Review: Jun 2019
Page 3 of 32
Validation History
Date &
Place Validation Team Summary Outcomes Action Responsibility
A complete validation report is filed and available for reference.
Version History
Date Version Changes in this Version Implemented on Authority
BSB61015| BSBFIM601 Manage Finances
Learner’s Guide | V 2.0 | Jun 2018
Pass Global Pty Ltd t/a ALTEC College |Provider Code: 22034 | CRICOS Code: 02926D
Approved by: Quality Manager | Next Review: Jun 2019
Page 4 of 32
Table of Contents
1. Introduction ............................................