Manage Finance

Running head: MANAGE FINANCE
Manage finance
Name of the student
Name of the university
Student ID
Author note

1MANAGE FINANCEReference
Table of Contents
Assignment 1...................................................................................................................................2
Part A...........................................................................................................................................2
a. Budget development.........................................................................................................2
b. Developing budget notes...................................................................................................4
Part B...........................................................................................................................................5
1. Statutory requirement to comply with the tax...................................................................5
2. Compliance requirement and liabilities under Corporation Act 2001..............................6
3. Financial management software........................................................................................7
4. Accounting principles.......................................................................................................7
5. Implication of probity.......................................................................................................8
6. Critical dates and initiatives..............................................................................................8
7. Recommendation for inclusion of items...........................................................................9
8. Modified list for internal control.......................................................................................9
Assessment 2.................................................................................................................................10
a. Issues involved in budget....................................................................................................10
b. Variance..............................................................................................................................10
c. Performance........................................................................................................................11

2MANAGE FINANCEReference
d. Recommendation................................................................................................................12
e. Financial management process...........................................................................................13
Reference.......................................................................................................................................14

3MANAGE FINANCEReference
Assignment 1
Stott’s Pty Ltd is the retail chain conducting its business in Brisbane through 15 stores. It
is one of the largest homeware retailers hat is catered to the requirements of furnishing renovated
and new dwelling all over grater Brisbane. Various products it deals with are bathroom fittings,
mirror, bedroom fittings and the decorative items along with lighting fixtures that has been added
recently. The entity is registered with ASIC (Berk et al., 2013)
Part A
a. Budget development
Sales and profit budget
Particulars 2015/16 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Revenue
Sales
$
16,971,236.64
$
3,394,247.76
$
4,073,096.88
$
4,412,521.44
$
5,091,370.56
(-) Cost of Goods
Sold
$
9,673,604.88
$
1,934,721.22
$
2,321,665.22
$
2,515,137.22
$
2,902,081.22
Gross Profit
$
7,297,631.76
$
1,459,526.54
$
1,751,431.66
$
1,897,384.22
$
2,189,289.34
Gross Profit % 43% 43% 43% 43% 43%
Less: Expenses
Accounting Fees
$
10,000.00
$
2,500.00
$
2,500.00
$
2,500.00
$
2,500.00
Interest Expenses
$
84,508.00
$
21,127.00
$
21,127.00
$
21,127.00
$
21,127.00
Bank Charges
$
1,600.00
$
400.00
$
400.00
$
400.00
$
400.00
Depreciation
$
170,000.00
$
42,500.00
$
42,500.00
$
42,500.00
$
42,500.00
Insurance
$
13,390.00
$
3,347.50
$
3,347.50
$
3,347.50
$
3,347.50
Store Supplies
$
3,749.20
$
749.84
$
899.81
$
974.79
$
1,124.76
Advertising
$
350,000.00
$
200,000.00
$
50,000.00
$
50,000.00
$
50,000.00
Cleaning
$
16,282.24
$
3,256.45
$
3,907.74
$
4,233.38
$
4,884.67
Repairs &
Maintenance
$
64,272.00
$
16,068.00
$
16,068.00
$
16,068.00
$
16,068.00
Rent
$
2,640,508.00
$
660,127.00
$
660,127.00
$
660,127.00
$
660,127.00