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SPB2105 Finance for Sport and Recreation Industry | Assignment

   

Added on  2019-10-12

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SPB2105Finance for the Sport and Recreation IndustryThe Australian College of Physical EducationIndividual Assignment GuidelinesComparative AnalysisTask 3Weighting: 30%Marks allowed: 35Due: Week 121

SPB2105Finance for the Sport and Recreation IndustryIndividual assignment guidelinesThe following is a business case that you are required to analyse as per the‘Required’ section on page 5, by answering the four parts (a, b, c and d) ofrequirement 1 and compiling a Reference List as per requirement 2.The business case data is as follows:Bottom Line Pty Ltd has been operating as a medium sized suburban sportsgym in Hornsby, for the past 5 years. The following is an extract of their oftheir Income Statement and Balance sheet for the year ended 30 June 2015.Comparatives are also provided. The bottom line is planning on opening up another gym in a different locationin order to expand its operations. They have a choice of 4 different locations,which vary in capital cost and expected cash flows based on detailed marketresearch, however they are mutually exclusive (see table 3).20152014RevenueFees Received321,591525,543Discount Received1,806481Total Revenue323,397526,024ExpenseStaff Training36,00025,000Advertising & Promotion23,34043,766Accounting6,3756,375Repairs and Maintenance9,3241,450Stationery3,9004,300Rent21,24020,500Cleaning 12,00013,000Electricity12,26410,567Telehone9,39610,453Staff Amenities3771,898Discount Allowed951,296Bank Charges6271,002Interest5,86710,350Bad Debts2,8563,500Total Expense143,661153,457NET PROFIT179,736372,567The Bottom LineIncome Statementfor the period ended 30 June 2015Table 1.2

SPB2105Finance for the Sport and Recreation IndustryThe Bottom LineBalance Sheetas at 30 June 201520152014AssetsCurrent AssetsBank115,95715,765Inventory81,28410,000Accounts Receivable Control5,47510,654GST Receivable3,7574,566Total Current Assets206,47340,985Non-Current AssetsGym Equipment266,959365,832Furniture & Fittings242,286352,123Motor Vehicle48,85055,567Computers14,81717,543Total Non-current Assets572,912791,065TOTAL ASSETS779,384832,050LiabilitiesCurrent LiabilitiesAccounts Payable Control25,42632,984GST Payable2,0001,344Loan - L & L L9,50025,000Total Current Liabilities36,92659,328Non-current LiabilitiesLoan - Republik Bank120,000330,000Total Non-current Liabilities120,000330,000Total Liabilities156,926389,328Net Assets622,458442,722Owners' EquityCapital442,72270,155Add: Profit179,736372,567Total Owners' Equity622,458442,7223

SPB2105Finance for the Sport and Recreation IndustryTable 2.ProposalCammerayPymbleThornleighDuralProject cost450,000300,000230,000230,000Year 1 before tax net cashflow 120,00095,00030,00090,000Year 2 before tax net cashflow170,00095,00080,00090,000Year 3 before tax net cashflow110,00095,000100,00090,000Year 4 before tax net cashflow150,00095,00090,00090,000Year 5 before tax net cashflow60,00095,00080,00090,000Table 3.4

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