(NEW) Assessment II - Finance

T-1.8.
Details of Assessment
Term and Year 1, 2019 Time allowed 8 weeks
Assessment No 2 Assessment Weighting 60%
Assessment Type Project Assignment
Due Date Week No. 8 Room TBA
Details of Subject
Qualification BSB51915 Diploma of Leadership and Management
Subject Name Finance
Details of Unit(s) of competency

Unit Code (s) and BSBFIM501 Manage Budgets and Financial Plans
Names
Details of Student
Student Name
College Student ID
Student Declaration: I declare that the work Signature: ___________________________

submitted is my own, and has not been copied or
plagiarised from any person or source. Date: _______/________/_______________
Details of Assessor
Assessor’s Name
Assessment Outcome
Results Satisfactory Not Satisfactory Marks / 60
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
Student Declaration: I declare that I have been Assessor Declaration: I declare that I have
assessed in this unit, and I have been advised of my conducted a fair, valid, reliable and flexible
result. I also am aware of my appeal rights and assessment with this student, and I have provided
reassessment procedure. appropriate feedback
Signature: ____________________________ Student did not attend the feedback session.

Feedback provided on assessment.
Date: ____/_____/_____
Signature: ____________________________
Date: ____/_____/_____
Finance, Assessment No.2 Page 1

v1.1, Last updated on 30/01/2019
T-1.8.1
Purpose of the Assessment

The purpose of this assessment is to assess the student in the following Competent Not Yet
learning outcomes: (C) Competent
(NYC)
1.1 Access budget/financial plans for the work team
1.2 Clarify budget/financial plans with relevant personnel within the organisation
to ensure that documented outcomes are achievable, accurate and
comprehensible
1.3 Negotiate any changes required to be made to budget/financial plans with
relevant personnel within the organisation
1.4 Prepare contingency plans in the event that initial plans need to be varied
2.1 Disseminate relevant details of the agreed financial plans to team members
2.2 Provide support to ensure that team members can competently perform
required roles associated with the management of finances
2.3 Determine and access resources and systems to manage financial
management processes within the work team
3.1 Implement processes to monitor actual expenditure and to control costs
across the work team
3.2 Monitor expenditure and costs on an agreed cyclical basis to identify cost
variations and expenditure overruns
3.3 Implement, monitor and modify contingency plans as required to maintain
financial objectives
3.4 Report on budget and expenditure in accordance with organisational
protocols
4.1 Collect and collate for analysis, data and information on the effectiveness of
financial management processes within the work team
4.2 Analyse data and information on the effectiveness of financial management
processes within the work team and identify, document and recommend any
improvements to existing processes
4.3 Implement and monitor agreed improvements in line with financial objectives
of the work team and the organisation
4.4 Petty cash calculation
Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory (S) or Not Satisfactory (NS). A student can
only achieve competence when all assessment components listed under Purpose of the assessment section
are Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who
is assessed as NS (Not Satisfactory) is eligible for re-assessment.
Resources required for this Assessment
 Upon completion, submit the assessment to your trainer along with assessment coversheet
 Refer to the subject notes on E-Learning prior to responding to the tasks/questions
 Any additional material will be provided by Trainer
Instructions for Students
Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be improved.
You will be provided with feedback on your work within 2 weeks of the assessment due date. All other
feedbacks will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps
in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be
deemed competent for this unit of competency.
 If you are not sure about any aspects of this assessment, please ask for clarification from assessor.

T-1.8.1
 Please refer to the College re-assessment and re-sit policy for more information.
INSTRUCTIONS:
This is a project assignment and you are required to complete this assignment by week 8. This
assessment includes case scenarios with analytical tasks that require calculations, decision making
and responses. Marking allocations and marking table at the end of this assessment document.
CONTEXT & SCENARIO

Peter has recently joined as a general manager at Metropolitan company that operates various small
business branches across Sydney. As the general manager, who not only looks after the overall
operation of the business but also attends meetings with the directors and investors when proposing
any changes and expansion of the business. You will act as Peter to progressively completing tasks
one after another within the simulated environment for the different businesses to complete this
assessment tasks.
Task 1 Metropolitan Furniture
Metropolitan furniture is one of the big operations for the company but registered as a small
business. Peter has asked to prepare a proposed budget for the forthcoming quarter. He consults
with the sales manager and finds that:
Estimated sales are as follows:

February $265,000 April $290,000
March $255,000 May $250,000
June $280,000
In consultation with the production manager he estimates that the cost of goods sold is to be
budgeted at 45% of the sales figure. The salaries are expected to be $65,000 per month. When sales
exceed $260,000 in any one month, the sales team is entitled to an additional 5% commission on the
excess sales over this figure. Other expenses are estimated to be $35,000 per month.
The owner of the organisation is concerned about the cash flow which was not thought of before.
The owner is of the opinion that the collection of cash from sales is slow and this could possibly lead
to cash flow problems to the organisation. As Peter has never forecasted cash flow before he sets
about collecting information on this.
Peter estimates that 80% of the total sales are going to be cash sales where the bill is settled when
the goods are purchased or delivered. 10% of the month’s sales settle the accounts owed in the
month following sales. Others (i.e. 10% of the month’s sales) settle in the month after.

T-1.8.1
Additional information for Cash Flow Statement:

The organisation gets a month’s credit on its purchases. That is, the accounts for the
purchases (COGS) made in one month is settled in the following month.
 All salaries are paid in the month as they are incurred.

 The additional commission is paid in the month after the month in which it was earned.
 Other expenses are paid in the month they were incurred.
 The bank balance at the beginning of the first month is estimated to be $40,000.
1. Show the profit and loss calculations for the April, May and June
2. Show the cash flow projection calculations for April, May and June
3. Will the business have adequate financial provision to pay tax? Why? Visit the ATO website
(www.ato.gov.au) and find out what is the tax rate (%) they will have to pay
4. If the cash flow statement and the P & L are productive, then what are the relevant people
Peter needs to communicate if he establishes a business plan?
5. If the P & L showing good profit trend and the forecasted cash flow statement returns positive
results, then marketing and operational departments may tend to expand their budget and
therefore the business may have cash shortage in future. Does Peter require a contingency
plan?
Answer (1): (2.5 marks)
Profit and Loss calculations

April May June
$ $ $
Sales 290000 250000 280000
Less Cost of Goods Sold 130500 112500 126000
Gross Profit 159500 137500 154000
Sales Salaries 65000 65000 65000
Commission 1500 0 1000
Other expenses 35000 35000 35000
Total expenses 101500 100000 101000
Net Profit 58000 37500 53000
Answer (2): (2.5 marks)

T-1.8.1
Cash flow projections

April May June
$ $ $
Opening Cash 40000 109250 131750
Plus cash in:
This month 232000 200000 224000

From last month 25500 29000 25000
From two months ago 26500 25500 29000
Total Cash available 284000 254500 278000
Less cash out:
Salaries 65000 65000 65000

Commission 1500
other expenses 35000 35000 35000
Stock 114750 130500 112500
Total cash out 214750 232000 212500
Closing cash balance 109250 131750 197250
Answer (3): (4 marks)
The net profits of the company are lower than the closing cash balances. Thus, it pay off the
tax thru the profit from its current cash balance.
__________________________________________________________________________
In order to implement new business plan, the business should communicate with
shareholders, head of departments, investors and suppliers.
__________________________________________________________________________
Yes, Peter needs a contingency plan and to monitor that he needs financial statement
analysis, ratio analysis, cash flow analysis and market performance analysis

T-1.8.1
Task 2: Report Financial Activities: As part of Peter’s job is required to report and advise the
owner about daily financial positions for the company. Based on the above financial analysis
calculation that you have prepared in the previous section, please prepare an email
communication below on how Peter can advise the owner (5 marks)
Email Communication Template
Metropolitan Furniture
1st February 2019
Subject: Daily Financial
To: Shareholders/ Owner
Dear Director/Owner,
Through this email, I would like to make a daily financial report toward the stakeholders. Based on the
financial analysis above, the amount of closing cash balance is lower than the net profit earned. Thus,
the shareholder needs to arrange the capital funds from personal source or raise through loans from
outsiders if necessary.
Dennis Yanata
General Manager
Task 3: Create Action Plan: Jenny, John, Adam and George are part of Peter’s Team. Based on the
scenario of Task 1 Peter is required to monitor financial performance (achieve forecasted sales,
monitor costs and manage expenses) on a continuous basis. List the Key performance indicators that
can be relevant for this task and create an action plan in the table below in order to provide support
to ensure how team members can competently perform required roles: (8 marks)
Job Title Suggested Support Time frame Key Performance

for achieving goals Indicators (e.g. monitor
(e.g give access to resources expected and actual sales and
and systems, disseminate expenditure, identify cost
relevant details of the agreed variation and expenditure
budget/plans, sales coach, overruns etc)
contingency plan)

T-1.8.1
Jenny (Sales Officer) Calling prospective Weekly Monitor the actual and
customers, explaining expected sales,
our product, and guiding customer feedback and
them through their maintain positive
purchase process. We business and positive
are seeking a candidate relationship with
who is persuasive, customer
energetic, and ready to
go the extra mile to
ensure customer
satisfaction.
John (Accounts Depositing funds into Monthly Preparing invoices,

back and filing the recording financial
receivable officer)
deposits receipts. The transactions, making
person who liaise deposits and producing
directly to the bank statements (eg: balance
regarding credit card sheet, cash flow and
payments, cash transfer profit and loss
and arrangements if statements)
payments check
bounce.
Adam (Accounts Receive and verify Monthly Complete payments,

expense reports, control expenses by
payable officer)
monitor discount receiving, processing,
opportunities, resolve verifying and reconciling
purchase order, invoices.
disburse petty cash by
filing documents.
George (Payroll collecting timesheet Weekly Balance substitute

information of each payrolls, maintain
officer)
employee, calculating employee payroll
the amount to disburse records, reports on
to each employee in the employee retirement.
pay period, calculate
taxes, send money to
accounts, and write
checks
Task 4: Preparation of Cash Flow Statement (8 mark)
Metropolitan shoe manufacturing company is another small business of the Metropolitan company
and currently is in a competitive position in the market and is trading in Western Sydney. Peter
requested to see the cash flow operations. Calculate the total cash inflows and cash outflows for this
company and the net cash position at the end of December from the following information:
Use the space provided and show all line items.

T-1.8.1
December 2012
Particulars Amount $
Cash receipts from customers 245,000
Cash paid to suppliers and employees 101,570
Interest paid 24,120
Income tax paid 25,910
Purchase of Subsidiary X, net of cash acquired 450000
Purchase of property, plant and equipment 350,100
Proceeds from sale of equipment 120,000
Interest received 22,550
Dividends received 25,654
Proceeds from issue of share capital 250,000
Proceeds from long-term borrowings 250,000
Payment of finance lease liabilities 50,000
Dividends paid 25,700
Cash and cash equivalents at beginning of period 530,750
Instruction for the students:
 Regular inflow and outflow is recorded under operating activities

 Cash inflow and outflow related to non-current assets are recorded under investment
activities
 Cash inflow and outflow related to interest bearing transactions are recorded under
financing activities.
 For each section add the inflows and then deduct the outflow.
Operating activities: $ Net Cash flow

$
Cash Receipts from Customers 245000
Cash paid to suppliers & customers -101570
Income tax paid -25910 117520
Investment activities:

T-1.8.1
Purchase of subsidiary X net of cash acquired 450000

Proceeds from Sale of equipment 120000
Interest received 22550
Dividends received 25654
Purchas of property, plant & equipment -350100 268104
Financing Activities:
Proceeds from issue of share capital 250000
Proceeds from long-term borrowings 250000
Interest paid -24120
Payment of Finance Lease Liabilities -50000
Dividends paid -25700 400180
Total Cash Surplus/ Deficit 785804
Cash & Cash equivalents at beginning of period 530750
Cash & Cash equivalents at ending of period 1316554
Task 5: Does the above cash flow statement show a positive /negative position on the end of
December? Does Peter require to make any immediate changes for a better outcome? If so, justify
your answer: (5 marks)
The cash flow statement above shows positive result. Thus Peter could expand his business
activities and change its financial plan in order to earn more profitability.
__________________________________________________________________________
__________________________________________________________________________
Task 6 : GST and Cash Flow Statement (8 marks )
Metropolitan Flower Shop is also managed by Peter which operates in North Sydney. Peter is
forecasting the transactions during the next financial year will affect its cash flow. (All ATO dues and
ATO credits are expected to be settled during the year)

T-1.8.1
Cash sales, 10% GST not included 90 000

Credit sales for year, including 10% GST 186 000
Cash receipts in respect of credit sales — budget year 150 000
Cash receipts in respect of credit sales — previous year 11 000
Cash purchases, 10% GST not included 80 000
GST payable to ATO 10 000
GST input credit from ATO 20 000
Wages 110 000
Other payments, including 10% GST 44 000
Prepare a budgeted cash flow statement assuming that the opening bank balance was $30,200.
Workings:
Cash Receipts: $ $
Cash sales 90000
GST receipts on cash sales 9000
Credit sales - budget year 150000
Credit sales - previous year 11000
Total Cash receipts 260000

Cash Payments:
Purchases 80000
GST payments on cash purchases 8000
Wages 110000
Net GST payable to ATO 10000
Other payments 40000
Total Cash Payments: 248000

Cash surplus/(deficit) 12000
Opening bank balance 30200
Closing bank balance 42200
Task 7: Does peter need to worry about the outcome of the cash flow statement of the above
calculation? (4 Marks)
Peter doesn’t need to worry much about the outcome of the cash flow statement as the
closing bank balance has larger amount than the opening bank balance.
__________________________________________________________________________

T-1.8.1
Task 8: Petty Cash Metropolitan stationary shop is another small business in Eastern Sydney. Peter
wants to keep on track of all the small expenses and asked the accounts manager to present the
petty cash book for the month of January. (5 marks)
Required:
1. Recording the establishment of the petty cash float in the Petty Cash Book
2. Recording the payment vouchers in the Petty Cash Book
3. Balancing the Petty Cash Book on the dates indicated
4. Recording the reimbursement cheques in the Petty Cash Book

T-1.8.1
Date Received Details Ref Total Stationery Staff Cleaning Travel Off.Supplies
Amen.
2/1 $400.00 Petty Cash 111
Float
3/1 Petty Cash 001 $22.00 $22.00
Book
4/1 Tea 002 $105.00 $105.00
Supplies
9/1 Cleaning 003 $135.30 $135.30
Supplies
10/1 Taxi fares 004 $52.80 $52.80
11/1 $347.20 Petty cash 199
balance
13/1 Taxi Fares 005 $66.00 $66.00
16/1 Stationery 006 $33.00 $33.00
Supplies
17/1 Milk 007 $82.00 $82.00
19/1 Office 008 $61.60 $61.60
Supplies
23/1 Taxi Fare 009 $44.00 $44.00
30/1 Newspaper 010 $105.60 $105.60
Delivery
$707.00 $33.00 $231.00 $135.30 $118.80 $189.20

$707.00 Balance 234 $400.00
$1107.00 $1107.00
1/10 $400.00 Balance b/d

T-1.8.1
MARKING TABLE FOR ALL TASKS (for trainer use only)

The assessor needs to use judgment in providing marks for the tasks based on learner performance.
TASK NO. MARK ALLOCATED MARK RECEIVED
Task 1
Q1 2.5
Q2 2.5
Q3 4
Q4 4
Q5 4
Task 2 5
Task 3 8
Task 4 8
Task 5 5
Task 6 8
Task 7 4
Task 8 5
Total 60


(NEW) Assessment II - Finance

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T-1.8.

Details of Unit(s) of competency

Student Declaration: I declare that the work Signature: ___________________________

Results Satisfactory Not Satisfactory Marks / 60

Signature: ____________________________ Student did not attend the feedback session.

Finance, Assessment No.2 Page 1

Purpose of the Assessment

Assessment/evidence gathering conditions

Finance, Assessment No.2 Page 2

CONTEXT & SCENARIO

Task 1 Metropolitan Furniture

Estimated sales are as follows:

March $255,000 May $250,000

Finance, Assessment No.2 Page 3

Additional information for Cash Flow Statement:

 All salaries are paid in the month as they are incurred.

Answer (1): (2.5 marks)

Profit and Loss calculations

Answer (2): (2.5 marks)

Finance, Assessment No.2 Page 4

Cash flow projections

This month 232000 200000 224000

Salaries 65000 65000 65000

Answer (3): (4 marks)

Answer (4): (4 marks)

Answer (5): (4 marks)

Finance, Assessment No.2 Page 5

Email Communication Template

1st February 2019

Subject: Daily Financial

To: Shareholders/ Owner

Job Title Suggested Support Time frame Key Performance

Finance, Assessment No.2 Page 6

John (Accounts Depositing funds into Monthly Preparing invoices,

Adam (Accounts Receive and verify Monthly Complete payments,

George (Payroll collecting timesheet Weekly Balance substitute

Task 4: Preparation of Cash Flow Statement (8 mark)

Use the space provided and show all line items.

Finance, Assessment No.2 Page 7

Cash paid to suppliers and employees 101,570

Interest paid 24,120

Income tax paid 25,910

Purchase of Subsidiary X, net of cash acquired 450000

Purchase of property, plant and equipment 350,100

Proceeds from sale of equipment 120,000

Interest received 22,550

Dividends received 25,654

Proceeds from issue of share capital 250,000

Proceeds from long-term borrowings 250,000

Payment of finance lease liabilities 50,000

Dividends paid 25,700

Cash and cash equivalents at beginning of period 530,750

Instruction for the students:

 Regular inflow and outflow is recorded under operating activities

Operating activities: $ Net Cash flow

Finance, Assessment No.2 Page 8

Purchase of subsidiary X net of cash acquired 450000

Task 6 : GST and Cash Flow Statement (8 marks )

Finance, Assessment No.2 Page 9

Cash sales, 10% GST not included 90 000

GST receipts on cash sales 9000

Credit sales - budget year 150000

Credit sales - previous year 11000