ASSESSMENT 1 – STUDENT INFORMTION
This information is to be handed to each student to outline the assessment requirements
Assessment: 1 - Research and Questioning:
Task 1:
For this assessment, Student must review Lesson materials provided in class
and Examples used in lessons. Kindly refer the Moodle instruction and consult
with trainer in case if you are not sure of due date(s).
Question 1.
Total Assets and Net Assets=Shareholder's Equity, for Telstra for the
period 1995 to 2004 are as listed below:
Year
Total
Assets Net Assets
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Required:
a) Prepare a forecast of Total and Net Assets for 2005 using 3 year moving
average.
) What amount of external financing would be required to fund the
expected expansion in 2005.
Question 2
The following data discloses annual revenues for CMI Ltd for the period
XXXXXXXXXX:
CMI Limited
Year Trading revenue
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Assessment
FNSORG506
Latest update, April 2018, V2.0
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
Required :
a) Compute three year moving average to forecast sales for 2005
) Compute three year fractionally weighted moving average using any
weight to forecast sales for 2005
c) Which method provides the most accurate forecast? (Calculate MAD
for each method)
Question 3
Refer the following statements and attempt to answer the given questions:
Balance Sheet, XYZ Ltd., 12/31/10
Income Statement, XYZ Ltd., 12/31/10
Assessment
FNSORG506
Latest update, April 2018, V2.0
Questions
(i)What is self-supporting growth rate (g)? How much is self-supporting
growth rate, g for XYZ Ltd.?
(ii) Why is a good sales forecast essential to a good financial forecast?
Task 2:
1. What is a financial Forecast?
2. Why the businesses need to prepare a financial forecast?
3. What are the components of a financial forecast?
4. What is a cash flow forecast?
ASSESSMENT 2 – STUDENT INFORMTION
This information is to be handed to each student to outline the assessment requirements
Assessment
FNSORG506
Latest update, April 2018, V2.0
Assessment: 2 – Case Study
This assessment requires you to determine the requirements to undertake budgeting,
financial forecasting and reporting requirements for an organisation. You will also
need to review the case study provided and prepare a budget (in electronic
spreadsheet format) and budget notes for distribution and implementation in the
organisation.
1. Read the case study.
2. Analyse the case study information (including business plan summary and previous
financial data) and complete the following.
a. Develop a sales budget, profit budget, cash flow budget and debtor ageing
summary using electronic spreadsheets (as separate worksheets) making sure
each budget is divided into quarterly periods and that you use previous financial
data to determine allocations for resources.
Ensure each budget you prepare complies with the organisational and policies
and procedures as provided.
. Develop budget notes which include:
i. identification of reasons for previous profits and losses
ii. your comment on the effectiveness of existing financial management
approaches
iii. all assumptions and basis that have been made or used to form budgets
iv. any relevant notes regarding implementation and monitoring of budget
expenditure.
3. Methods of obtaining approvals from higher managements for the forecast.
You must provide:
● a completed annual budget in a single spread sheet with a separate sheet for each
udget component. You must print out all worksheets and submit to your trainer.
● budget notes
● a plan for gaining approvals
Case study
You have recently been appointed as the business manager of Mountain view
Pty Ltd having been a store manager for the past three years. Mountain view
Pty Ltd is a 15 store retail chain located in Brisbane. Mountain view is the
Assessment
FNSORG506
Latest update, April 2018, V2.0
leading homewares retailer, catering to the growing need for furnishing new
and renovated dwellings in the greater Brisbane area.
The assortment on offer of bathroom fittings, bedroom fittings, mi
ors and
decorative items together with the recently added lighting fixtures has
positioned Mountain view as a leader in homewares retailing in Australia.
Mountain view has grown over the past five years from a single store to the
cu
ent chain. Mountain view prides itself on superior after sales service which
has been a key reason for the continued growth in sales and co
esponding
profit increases. Today Mountain view employs over 150 staff.
Mountain view Pty Ltd is a proprietary limited company (ACN XXXXXXXXXX)
egistered with the Australian Securities and Investment Commission. The
egistered address is with Mountain view’s solicitors (Langs Lawyers, 535
Queen Street, Brisbane, QLD 4000) and the principle place of business is 505
Boundary Street Spring Hill Brisbane QLD 4000.
Computer software requirement
The cu
ent accounting information system has not adequately provided
sufficient analysis of revenue and expenditure and has made it difficult to
make informed estimates of future profits. Estimates have relied on the ‘gut
feel’ of the experienced traders on the board and of the senior managers. The
oard sees the need to apply more analysis to past results that they believe
could be done with the introduction of state-of-the-art computer software.
Mountain view Pty Ltd wants to upgrade their existing accounting system
which will manage the company accounts more efficiently in the long run.
They request that the new system you recommend to them to be compliant
with all legislative and statutory requirements for small to medium businesses.
None of Mountain view’s products are GST free however the accounting
information system records the GST collected as well as the input tax credits
earned on the purchases of stock and assets. These amounts are reported and
paid in accordance with the business activity statement (BAS) schedule
determined by the Australian Tax Office.
They have 100 fulltime and 50 part-time staff, but only 10 of the staff will have
or need access to the financial system. Some staffs are paid on a salary sacrifice
a
angement that attracts fringe benefits tax. The staffs with access to the
financial system want software that is a single purchase with no ongoing
license fees, and a plan to keep using if for the next 3–5 years, while the
organisation continues to grow. They are anticipating that within five years
they will have over 250 full-time staff, and at least 20 staff will require access to
the financial system by then.
Assessment
FNSORG506
Latest update, April 2018, V2.0
The payroll system deducts withholding tax from the employees and remits
this along with the firm’s pay as you go (PAYG) instalment each quarter as
eported on the firm’s business activity statement. Income tax return for the
company and its annual statement is completed by the firm’s accountant. Taxes
and fees due are paid by the due dates. Financial records are kept at Mountain
view’s principle place of business.
Mountain view have just upgraded their computers and have five new desktop
PCs which will be used by the finance staff. They are cu
ent specification
machines with i5 CPUs and 4Gb RAM each, and all have Windows 7
Professional and Norton’s 360 installed with the professional version of
Microsoft Office Small Business as well. Other staff will use their machines at
various times, so it is important that the software requires a login to access data
and that data stored by the software cannot be accessed in any other way.
Corporate details
Jim Schneider, the CEO, has asked you to prepare some financial budgets for
the 2012/13 financial year as a preliminary overview of the financial year
ahead. He asked you to first prepare a 12 months budget and then
eak it up
over the four quarters. The areas he is particularly interested in seeing is:
1. Sales budget for 2012/13 by department by quarter.
2. Profit budget (including detailed expenses) for 2012/13 by quarter.
3. The cash flow result per quarter of the GST after adjusting the GST collected by the
allowable GST tax credits.
Assessment
FNSORG506
Latest update, April 2018, V2.0
4. The anticipated aged debtor’s summary at the end of each quarter.
The CEO wants to be given all the budgets except for the aged debtor’s budget
which the accountant and accounts receivable clerk can monitor. The CEO
produced a summary of the cu
ent business plan that covered the budget year
to highlight some of the key goals, objectives and strategies he would like
incorporated into the budget.
Assessment
FNSORG506
Latest update, April 2018, V2.0
Business plan summary
1. The anticipation that the coming financial year would maintain the same sales growth as
the growth that took place between 2008/09 to 2011/12.
2. To budget for an increase in inflation to 4% per annum and that all costs subject to
inflation should incorporate this particular increase.
3. A new car costing $97,466 including GST has been planned for in the coming period to
eplace the five year old vehicle cu
ently used by the chairman. This fuel inefficient car
will attract a luxury car tax.
4. Sales
eakup over the departments is anticipated to be bathroom fittings 30%, bedroom
fittings 25%, mi
ors 15% and decorative items 10% together with the recently added
lighting fixtures 20%.
5. Profits are to be built on