Do all the tasks and work on the attached template
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 1995 24083 11727 1996 24362 12668 1997 25858 9938 1998 26470 11079 1999 27682 10294 2000 30339 11602 2001 37473 13722 2002 37597 14106 2003 35599 15422 2004 34993 15580 Required: a) Prepare a forecast of Total and Net Assets for 2005 using 3 year moving average. b) 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 1995-2004: CMI Limited Year Trading revenue 1995 26 1996 31 1997 40 Assessment FNSORG506 Latest update, April 2018, V2.0 1998 61 1999 72 2000 141 2001 128 2002 124 2003 191 2004 270 Required : a) Compute three year moving average to forecast sales for 2005 b) 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. b. 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 budget 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, mirrors 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 current chain. Mountain view prides itself on superior after sales service which has been a key reason for the continued growth in sales and corresponding profit increases. Today Mountain view employs over 150 staff. Mountain view Pty Ltd is a proprietary limited company (ACN 34 765 234 02) registered with the Australian Securities and Investment Commission. The registered 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 current 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 board 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 arrangement 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 reported 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 current 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 break 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 current 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 replace the five year old vehicle currently used by the chairman. This fuel inefficient car will attract a luxury car tax. 4. Sales breakup over the departments is anticipated to be bathroom fittings 30%, bedroom fittings 25%, mirrors 15% and decorative items 10% together with the recently added lighting fixtures 20%. 5. Profits are to be built on