Reference no: EM132433692

BSBFIM501 - Manage budgets and financial plans - Tafe Queensland

Assessment Task 1 - Financial Analysis

Instructions: Fitness gym owner Hedley Trayner and Operations Manager Chan Connell need to evaluate the performance of the fitness gym's coffee shop. To do so, they have asked you to study the financial profit and loss data of the coffee shop's past three months of operation. Please study the financial information in the Excel workbook and answer the following questions.

To complete this activity, you may have to research the Internet and consult supplementary materials in Connect. Good places to start an Internet search are the Australian Taxation Office and Business.

The questions are on the following page.

Question 1. What is your initial impression of the overall result for the month of March 20XX when compared to previous months? (Looks good, Looks bad, Something doesn't look right)
• The profit result?
• The total Budget?
• The variance to budget?

Question 2. Calculate the Gross Profit % for each month using formula. Highlight the cells in green.
What is the gross profit % for March and what trend can you identify in relation to the previous months?
• Gross Profit % for March
• Describe the trend

Question 3. List 3 possible reasons to explain the decline in GP%? Which of the reasons identified is most likely contributing to the decline in the case study? Explain your response.

Question 4. What does a study of previous months' tell you about the revenue trends? (including the % change ‘month on month')

Question  5. List 3 possible reasons to explain the increase in revenue of the Coffee Shop over the past 3 months.

Question 6. There are 3 data entry errors in the data presented.
a. List the 3 data errors in the box below. Make the adjustments in the data and highlight the changes in yellow
b. What impact have the changes made on the net profit?

Question  7. Why do you think that electricity expense in March is so much more than the budget for February?

Question  8. Are there any expenses that the finance team might have forgotten to calculate and include in the March budget? Explain.

Question 9. Create a budget variance report for the quarter ended 31 March 20XX. The template is next to the March data. Use formulae to calculate your Actual and Budget figures. Formulae are already included Variance $ and %

Question  10. What explanation could you offer for the variance in Repairs and Maintenance in March?

Question 11. Locate the Superannuation Guarantee Charge (minimum amount employers should pay on top of an employee's wage). Include your reference link.

Question  12. Based on your response in Q11, review the superannuation calculated for each month. Make any of the changes required and note the amounts for each month below.

Question  13. List 3 goods or services that Club Train may need to purchase and that would be GSTexempt.
Include your reference source

Question 14. List three source documents or records that must be kept at your workplace. Where would you store them, and for how long they must be kept for ATO purposes.

Question 15. Provide a process flow chart for administration staff to follow that explains the relationship between GST Paid (Input tax credit), GST Collected and GST Payable. Include the source documents where these amounts occur, the report that needs to be repaired, plus the timing and destination of the report. Identify the relevant legislation.

ASSESSMENT TASK 2 - CONTINGENCY PLANNING

Instructions: Club Train increased its budget expectations by 10% across the board for its products. The result of this was the June budget below.

Through your variance report analysis you have determined negative variances in some of your revenue streams. You have identified the following unit variances for the month of June

• Aqua Aerobics down 20%, Step Classes and Box ercise - no change, Personal Assessments down 5%, New Gym Memberships down 10%, casual gym attendance down by 15%, aerobic classes down by 15%

Calculate the June actual figures

Instructions: Hedley has requested a report that needs to outline the following:
Purpose behind the variation. Consider factors such as seasonal adjustment, economic factors, etc.
3 ways that you could mitigate this loss in revenue
What changes will you recommend to stop the negative variances?
How will you monitor and support team members to prevent this negative variance continuing?
What improvements would you recommend to Hedley to monitor Club Train's financial processes?

ASSESSMENT TASK 3 - PREPARE A CASH FLOW PLAN

Instructions: You have been asked to prepare a cash flow plan for the Club Train for the month of February to determine if a purchase of $150,000 can be afforded.

ASSESSMENT TASK 4 - AGEING SUMMARY
Instructions: The company policy is that 85% of all accounts receivable must be received by the due date and accounts more than 60 days overdue must be referred to a debt collection agency. Using the ageing summary below has the policy been met and which customer should be referred to the debt collecting agency.

Has the 85% policy been met?
Which customer/s should be referred to the debt collecting agency?

ASSESSMENT TASK 5 - PETTY CASH

Instructions: Last month, you set up a Petty Cash fund for your office/department. You established the fund with $100 and issued the following vouchers listed in Voucher number order. All cash amounts include GST where applicable. Identify which expenses include GST and record the GST amount against the expense.

Prepare a Petty Cash Report showing the total GST paid as a separate item in the report.

ASSESSMENT TASK 6 - KNOWLEDGE QUESTIONS

BASIC ACCOUNTING PRINCIPLES
Match the concepts, principles and assumptions with their correct descriptor.
1. Dual Aspect
2. Matching principle
3. Objectivity
4. Separate accounting entity' assumption
5. Time Period' assumption

.....................................2............................. Revenues should be "matched" against expenses that were incurred to generate them. That expenses should be recorded in the same period in which the revenue is earned. This approach is supported by the accrual accounting method. To do this, accountants need to prepare adjustments at the end of each reporting period.
.....................................4............................. This convention states that the business is an entity that is perceived to have its own existence, separate from its owner. So business records should be separated and kept distinct from the personal records of the business owner(s).
.......................................3........................... This concept states that transactions must be recorded on the basis of evidence. This means that accounting records will start with source document to ensure that the information recorded in the accounting system is based on fact and not just on personal opinion.
.................................1................................. This concept is based on the accounting equation: Assets = Liabilities + Owners Equity. All transactions recorded in the accounting system must keep this equation in balance. To do this financial transactions consist of both a debit side and a credit side of equal amounts.
................................5.................................. This convention allows for the performance evaluation of a business to be broken-up into specific period of time such as a month, a quarter or a year. This short time period of assessment allows internal and external users to make adjustments to their strategy in relation to the business. It also allows the accountant and other users can compare like-to-like financial results over a similar period of time.

What are the key components of a cash flow forecast

Opening balance, receipts and closing balance.
Why is it an important budgeting tool? Project the inflow and outflow which helps identify peaks and troughs in your finances.
Describe three benefits in using electronic spreadsheets for budgeting and analysis. At least one of your responses must include how you can maintain the integrity of your data.

Attachment:- Manage Budget Workbooks.rar