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...

need to choose the same company which they have provided in the learners guide.You can the company name in ASSESSMENT 2


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: · Current 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 borrow 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 brief 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: $30/pack Assuming Total Manufacturing Overhead is divided evenly between Dinner Table and Buffet. July August September Total Dinner Table Raw Materials Ash Pine-2 pack Total Direct Labour cost Total Manufacturing Overhead Total Buffet Raw Materials Redwood Pine-2 pack Total Direct Labour cost Total Manufacturing Overhead Total GRAND TOTAL Describe your finding Cost of Goods Sold Budget – Hardwood Products (for the quarter ending 30th September 2017) The Opening and closing inventory of finished goods are calculated based on the following: Opening July inventory of finished goods will be: · Dining Tables: (quantity and price) · Buffets: (quantity and price) Closing Sept inventory of finished goods is estimated to be: · Dining Tables: (quantity and price) · Buffets: (quantity and price) The opening and closing raw material inventory are calculated based on the following: Opening July raw materials inventory will be: · Ash: (length and price per unit) · Redwood: (length and price per unit) · Pine 2‐pack: (quantity and price per pack) Estimated closing September raw materials inventory is expected to be: · Ash: (length and price per unit) · Redwood: (length and price per unit) · Pine 2‐pack: (quantity and price per pack) Formula: beginning inventory + inventory purchases and expenses - ending inventory = cost of sales, also known as cost of goods sold. CoGS = Opening inventory of finished goods + Opening raw material inventory + Production cost – Closing inventory of finished goods - Closing raw material inventory Dining Table ($) 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 September 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 September Total Budgeted Sales 2100 10,000 Sources of Cash Cash Sale Credit Sale from last month (Discount – 2%) - Credit Sale from 2 months prior - - 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 September 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 prior 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 quarter · Direct labour costs will remain constant throughout the year · Factory overheads are likely to increase by 20% each quarter · Discount levels will remain constant throughout the year 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                                          Copyright:    Provided under license from Skillworks Australia Pty Ltd. All rights reserved.    This document and its contents are protected by Australian and International copyright laws. No part of this document may be  reproduced or transmitted in any form or by any means, electronically or mechanically, including photography, scanning, recording or  any information storage or retrieval system, without permission in writing from the copyright owner. Information and/or resources used  from the Commonwealth, government agencies, training.gov.au, public domain information, or any other external sources do not  constitute copyright and remain the property of the original authors/agencies.     All the websites and external resources mentioned in this publication, including any information linked to or referred to public domain  information, are copyrighted to their respective owners. Web links are used as examples for reference purpose only and may have  changed since publication of this resource. Skillworks Australia Pty Ltd or the author do not claim endorse the views expressed by them.     Skillworks Australia Pty Ltd  ACN: 153 650 894      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 ............................................