BSBFIM601 Manage Finances - Case Study and Report

1 | P a g e
BSB61218 Advanced Diploma of Program
Management
BSB60215 Advanced Diploma of Business
BAB61015 Advanced Diploma of Leadership
and Management
BSB61315 Advanced Diploma of Marketing
and Communication
BSBFIM601 Manage finances
Task 2 – Case Study and Report

Candidate Instructions
Purpose of this Assessment task
This assessment task is designed to test your skills in managing finance as required by the unit
BSBFIM601 Manage finances. Your trainer/assessor will be assessing your work and provide you with
constructive feedback on Canvas. This task will assess your skills to:
 Create opportunities to maximise innovation within a team
 Organise and agree effective ways of working
 Support and guide colleagues
 Reflect on how the team is working.
In this assessment you will analyse the provided case provided, undertake research in the topics
presented and prepare a report to demonstrate your skills and provide report to your Trainer. By
successfully completing this Case Study you will provide the required performance evidence of your
competence in managing finances.
What are you required to do to undertake this Case Study?
You should carefully read the provided Case Study; its additional documents provided on Canvas and
undertake all questions. The task includes: (i) Analysing the case (ii) Undertaking required research (iii)
Role playing and (iv) Reporting.
To successfully undertake this assessment, you should be doing the following:
 Read the provided Case Study couple of times and understand its requirements
 Clarify the requirements with your trainer and assessor, if you are not sure
 Research appropriate websites as directed by your trainer/assessor
 Self-reflect before you write your answers and upload them on Canvas
 Discuss with your trainer/assessor the contents of the report you will be presenting
Context and conditions of undertaking the tasks?
The prescribed tasks will be undertaken by you after carefully analysing the case scenarios. Your
trainer/assessor will provide you a context to role-play the scenario. Your trainer will also provide you
guidance on the websites to be researched. Your trainer/assessor may also set certain conditions under
which you will perform the tasks required by this assessment. For example, your trainer may set a time
limit to perform a task or, ask you to repeat a task or, ask you to give additional information about the
performance by asking you some verbal questions or, they may prescribe you some new conditions to
undertake certain tasks.
Given your personal conditions, your trainer/assessor should also be able to make some reasonable
adjustments in undertaking the tasks of this assessment. You should check with your trainer/assessor
about the conditions under which the tasks should be completed, and the possible adjustment they can
make in undertaking these tasks.
What specific WHS requirements may be involved?
This assessment will require you to be aware of the standard Workplace Health and Safety requirements
e.g. Workplace Health and Safety Act and Workplace Health and Safety Legislation Your trainer/assessor
will advise you on these and other legislative requirements.
Tasks and frequency of performance
2 | P a g e

Details of the tasks to be undertaken in this assessment are provided in the attached Case Study. The
tasks listed in that document must be performed at least once.
Getting Started
It is anticipated that the assessment will take approximately 8 hours to complete.
The assessment may be re-attempted on two further occasions (maximum three attempts in total). All
assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly
indicate “Re-submission” on your resubmitted work.
You must complete all questions unassisted by the assessor or other personnel but may refer to
reference material as may be needed. All questions must be answered satisfactorily for the assessment to
be completed satisfactorily.
For any assessment conducted that is incomplete, or without satisfactory performance, the assessment
will need to be completed again after further training support. This may be simply to focus on question
areas not achieved in the prior assessment.
Submitting your assessment
When you are ready to submit your assessments, upload the files in Canvas via the submission tab. It is
important that you keep a copy of all electronic assessments submitted to Canvas. Please submit all
assessment components.
Word count
In this assessment some of the questions include a word count. This is a guideline only, but your answers
should not vary substantially (i.e. +/- 10%) from the word count provided. Microsoft Word includes a
word count tool.
Objective To test the required application skills in managing finances.
3 | P a g e

Assessment Cover Sheet
Candidate name:
Trainer’s Name:
Date Submitted:
Candidate declaration: I declare that:
 I have read and understood all the information provided in relation to
the assessment requirements to complete this unit, the instructions
and the purpose and processes of undertaking this assessment task
 This assessment is my own work and where other’s works or ideas have
been borrowed, I have appropriately referenced or acknowledged them
 I understand that plagiarism is a serious offence that may lead to
disciplinary action.
Candidate signature:
4 | P a g e

Task 2: Portfolio of Evidence
Part A
1. 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.
PROFIT BUDGET
Profit Budget 2017/18 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Revenue 8% 20% 24% 26% 30%
Sales 1,69,71,237 33,94,247 40,73,097 44,12,522 50,91,371
- Cost of goods
sold 96,73,605 19,34,721 23,21,665 25,15,137 29,02,081
Gross profit 72,97,632 14,59,526 17,51,526 18,97,384 2,18,290
Gross profit % 43% 43% 43% 43%
Expenses
- Accounting Fees 10,000 2,500 2,500 2,500 2,500
- Interest Expense 84,508 21,127 21,127 21,127 21,127
- Bank charge 1,600 400 400 400 400
- Depreciation 1,70,000 42,500 42,500 42,500 42,500
-Insurance 13,390 3,348 3,348 3,348 3,348
- Store supplies 3,749 750 900 975 1,125
- Advertising 3,50,000 2,00,000 50,000 50,000 50,000
- Cleaning 16,282 3,256 3,908 4,233 4,885
Repairs &
Maintenance 64,272 16,068 16,068 16,068 16,068
- Rent 26,40,508 6,60,127 6,60,127 6,60,127 6,60,127
-Telephone 14,997 2,997 3,599 3,899 4,499
-Electricity
expense 26,780 5,356 6,427 6,963 8,034
-Luxury Car Tax 12,000 12,000
-Fringe Benefit 28,000 7,000 7,000 7,000 7,000
Tax
-Superannuation 1,87,020 37,404 44,885 48,625 56,106
-Wages & salaries 20,78,000 4,15,600 4,98,720 5,40,280 6,23,400
-Payroll Tax 98,705 19,741 23,689 25,663 29,612
5 | P a g e

-Workers'
compensation 41,560 8,312 9,974 10,806 12,468
Total Expenses 58,41,371 14,58,488 13,95,172 14,44,514 15,43,197
Income Tax 4,36,878 311 1,06,878 1,35,861 1,93,828
Net Profit 10,19,383 727 2,49,382 3,17,009 4,52,265
SALES BUDGET
Sales
Budget 2017/18 Quarter 1 Quarter 2 Quarter 3 Quarter 4
BUDGET Total Budget 20% 24% 26% 30%
Total Sales 1,69,71,237 33,94,247 40,73,097 44,12,522 5,09,13,721
Bathroom
fittings 30% 50,91,371 10,18,274 12,21,929 13,23,756 15,27,411
Bedroom
fittings 25% 42,42,371 8,42,562 10,18,274 11,03,130 12,72,843
Mirrors 15% 25,45,685 5,09,137 6,10,965 6,61,878 7,63,706
Decorative
items 10% 16,97,124 3,39,425 4,07,310 4,41,252 5,09,137
Lighting
Fixtures 20% 33,94,247 6,78,849 8,14,619 8,82,504 10,18,274
GST CASH FLOW ANALYSIS
GST 2017/18 Quarter 1 Quarter 2
Quarter
3 Quarter 4
GST Collected 16,97,124 3,39,425 4,07,31
0 4,41,252 5,09,137
Less GST
Paid
1,22,81,35
8 2,82,913 3,06,85
4 3,26,325 3,65,267
GST Payable 4,15,76
5 56,512 1,00,45
6 1,14,927 1,43,870
AGED DEBTORS BUDGET
AGED DEBETORS
BUDGET TOTAL Quarter
1 Quarter 2 Quarter 3 Quarter
4
Sales 1,69,71,237 33,94,247 40,73,097 44,12,522 50,91,371
% Debtors Sales 20% 20% 20% 20%
Total Debtors 100% 6,78,849 8,14,619 8,82,504 10,18,274
Current 84% 5,70,234 6,84,280 7,41,304 8,55,350
30 Days 10% 67,885 81,462 88,250 1,01,827
60 Days S O
O 33,942 40,731 44,125 50,914
6 | P a g e

90 Days 1% 6,788 8,146 8,825 10,183
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.
Budget notes:
 The prior period profits are $590,254 n 2013/14, $731,188 in 2014/15, $851,188 in 2015/16 and
$1,019,499 in 2016/17. The reason behind this increase in the profit is mainly due to the rise in
the customer bae and the business is built on the high quality after sales service. The store
supplies, cleanings, payroll tax, electricity expense, Wages & Salaries and other expenses have
consequently led to fall in the profits while all the other expenses have remained the same.
 The above stated expenses have increased because of the inflation and therefore, the profits
which had been derived from the previous years are the outcome of the right and accurate
control. Therefore, there were n losses and for the coming years it is effective for having a
stricter control on the business expenses. In addition to this, it is important to be able to
effectively and efficiently manage the money and understand how and where to spend.
 To create budgets, the inflation is taken to be 4% every year and all the costs have experienced
this increase and in addition to this, all the extra business-related expenses and its taxes like the
bathroom and bedroom fittings and the mirrors and the decorative items along with the lighting
fixtures. The key to accomplishing higher profits is the superior quality after sales service which
helps in building strong customer base which assisted in generating loyalty sales.
 It has been assumed that the sales will grow at the same rate 2017/18 as 20116/17 and the rate of
inflation will be 4% annually with the gross profit expected to reduce by 1%. I addition to this,
there is increase in the budget for advertising by $70,000 over the 2016/17 outcome. $200,000
was planned for the 1st quarter with the balance to be apportioned equally in the other quarters.
There is rise in wages and salaries by $172,500 over the 2016/17 amounts and the accounting
fees is the fixed amount of $10,000.
7 | P a g e

2. Communicate information regarding the budget and answer a series of prompt questions in
written or oral form as agreed with your assessor.
Case study
You have recently been appointed as the business manager of Houzit Pty Ltd having been a store
manager for the past three years. Houzit Pty Ltd is a 15-store retail chain located in Brisbane. Houzit is
the 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 Houzit as a leader in homewares retailing in
Australia. Houzit has grown over the past five years from a single store to the current chain. Houzit
prides itself on superior after sales service which has been a key reason for the continued growth in
sales and corresponding profit increases. Today Houzit employs over 150 staff.
Houzit 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 Houzit’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.
8 | P a g e