Reference no: EM133021985
BSBFIM801 Manage financial resources
2.1 Analyse the costs of, and returns from, assets and liabilities using standard accounting techniques to identify extent of debt and equity financing
2.2 Establish management responsibilities and legal requirements for reporting, in consultation with relevant organisational staff
2.3 Analyse and interpret financial reports and key information
2.4 Analyse and evaluate the effects of financial decisions on the ability of the organisation to meet planned outcomes
3.1 Collect comparative and trend information and confirm needs for future budget and associated resources
3.2 Complete negotiations to secure resources in accordance with relevant short term and long term needs
3.3 Allocate resources against the budget to maximise organisation's performance
3.4 Maintain accurate and up to date records of resource allocation and usage according to organisational and legislative requirements
3.5 Develop and review management systems which enable timely collection, management and processing of information
3.6 Complete and accurately report records of budget performance and expenditure according to organisational procedures and statutory requirements
3.7 Evaluate and improve budget audit mechanisms and compliance requirements as required
Part A- Scenario based questions (explain with examples wherever possible)
1. Assume you are an analyst, what are the key points that you will focus on a financial forecast report.
2. Explain how organizational and statutory requirement affects the preparation and planning of budget forecast.
3. Describe how do the costs of, and returns from, assets and liabilities influence the extent of debt and equity financing?
4. From the information provided below about hypothetical company, collect and communicate comparative trend information from the point of view of needs for future budget and associated resources.
5. List and explain the various steps associated with negotiations to secure resources in accordance with relevant short term and long term needs of a company?
6. Write down the steps associated with allocating resources against the budget to maximise organisation's performance.
7. Study the graphical illustration given below; based on that develop and review management systems which enable timely collection, management and processing of information.
8. Describe the various steps involved in evaluating and improving budget audit mechanisms and compliance requirements?
Part B- Calculations
1. Below is the extract from the financial statement of ABC Company:
Calculate:
a. Debtors Ageing Ratio
b. From the following figures calculate average age of creditors and creditor turnover ratio:
c. Calculate inventory turnover and days inventories outstanding for ABC, Inc. based on the information given below:
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Accounts Receivable
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Opening Balance
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55000
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Closing Balance
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45000
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Credit Sales
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400000
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$
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Creditor (closing)
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54200
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Bills payable (closing)
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5800
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Total purchases
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338000
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Cash purchases
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28500
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Purchases returns
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9500
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Days of year
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365
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Opening inventories
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$25,000
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Closing inventories
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$30,000
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Cost of goods manufactured
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$245,000
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2. Jelly Fences has sales of $250,000; the cost of fences for the year 2016 was $78,000 and the administration costs were $12,000.
The depreciation charge was $45,000 and the interest paid was $63,000.
What was the profit for the year and the operating cash flows for Outback Fences if the tax rate is 30%?
Required: Calculate Cash-flow for Jelly Fences for the year 2016.
Attachment:- Manage financial resources.rar