BSBFIM501 Diploma of Leadership and Management
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Added on 2021-04-16
BSBFIM501 Diploma of Leadership and Management
Added on 2021-04-16
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T-1.8.1Details of AssessmentTerm and Year1, 2018Time allowed8 weeksAssessment No2Assessment Weighting40%Assessment TypeAssignmentDue DateWeek No. 8RoomTBADetails of SubjectQualificationBSBFIM501Diploma of Leadership and ManagementSubject NameFinanceDetails of Unit(s) of competencyUnit Code (s) and NamesBSBFIM501 Manage Budgets and Financial PlansDetails of StudentStudent NameCollegeStudent IDStudent Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source.Signature: ___________________________Date: _______/________/_______________Details of AssessorAssessor’s NameNadia Chowdhury Assessment OutcomeResultsSatisfactory Not SatisfactoryMarks / 40FEEDBACK TO STUDENTProgressive feedback to students, identifying gaps in competency and comments on positive improvements:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights and reassessment procedure.Signature: ____________________________Date: ____/_____/_____Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedbackStudent did not attend the feedback session. Feedback provided on assessment.Signature: ____________________________Date: ____/_____/_____Finance, Assessment No.2Page 1v1.1, Last updated on 02/09/2017
T-1.8.1Purpose of the AssessmentThe purpose of this assessment is to assess the student in the following learning outcomes:Satisfactory(S)Not yet Satisfactory(NS)Plan financial management approachesImplement financial management approachesMonitor and control financesReview and evaluate financial management processesAssessment/evidence gathering conditionsEach 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 AssessmentUpon completion, submit the assessment to your trainer along with assessment coversheetRefer to the subject notes on E-Learning prior to responding to the tasks/questionsAny additional material will be provided by TrainerInstructions for StudentsPlease read the following instructions carefullyThis 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 your assessor.Please refer to the College re-assessment and re-sit policy for more information.Finance, Assessment No.2Page 2v1.1, Last updated on 02/09/2017
T-1.8.1Question 1: Metropolitan Furniture (10 mark)Peter works in the accounts unit of the Metropolitan Furniture Manufacturing. He wasasked to prepare a proposed budget for the forthcoming quarter. He consults with the salesmanager and finds that:Estimated sales are as follows:February$265,000April$290,000March$255,000May$250,000June$280,000In consultation with the production manager he estimates that the cost of goods sold is tobe 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 additional5% 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 ofbefore. The owner is of the opinion that the collection of cash from sales is slow and thiscould possibly lead to cash flow problems to the organisation. As Peter has neverforecasted 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 settledwhen the goods are purchased or delivered. 10% of the month’s sales settle the accountsowed in the month following sales. Others (i.e. 10% of the month’s sales) settle in themonth after.Additional information for Cash Flow Statement:The organisation gets a month’s credit on its purchases. That is, the accounts for thepurchases (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 June2.Show the cash flow projection calculations for April, May and June3.What Peter is required to advise the owner of the organisation?4.Will the business adequate financial provision to pay tax? Why?5.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?6.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. How Peter can monitorfinancial performance on a continuous basis? 7.Does Peter require advising the owner about any immediate change in the financial plan? Why?Finance, Assessment No.2Page 3v1.1, Last updated on 02/09/2017
T-1.8.1Answer (1):Profit and Loss calculationsAprilMayJune$$$Sales 290,000.00 250,000.00 280,000.00 Less Cost of Goods Sold 130,500.00 112,500.00 126,000.00 Gross Profit 159,500.00 137,500.00 154,000.00 Sales Salaries 65,000.00 65,000.00 65,000.00 Commission 1,500.00 - 1,000.00 Other expenses 35,000.00 35,000.00 35,000.00 Total expenses 101,500.00 100,000.00 101,000.00 Net Profit 58,000.00 37,500.00 53,000.00 Answer (2):Cash flow projectionsAprilMayJune$$$Opening Cash 40,000.00 109,250.00 131,750.00 Plus cash in:This month 232,000.00 200,000.00 224,000.00 From last month 25,500.00 29,000.00 25,000.00 From two months ago 26,500.00 25,500.00 29,000.00 Total Cash available 284,000.00 254,500.00 278,000.00 Less cash out:Salaries 65,000.00 65,000.00 65,000.00 Commission - 1,500.00 - other expenses 35,000.00 35,000.00 35,000.00 Stock 114,750.00 130,500.00 112,500.00 Total cash out 214,750.00 232,000.00 212,500.00 Closing cash balance 109,250.00 131,750.00 197,250.00 Answer (3):The company shall improve the system for credit collection and must take initiativestocollect the amount due from credit sales faster as compared to the present scenario. It willimprove the cash position of the company which in turn will enable it to meet the expensesefficiently (Brooks 2015).Finance, Assessment No.2Page 4v1.1, Last updated on 02/09/2017
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