BSBFIM601 Manage Finances: AHMI Learner Workbook 2018

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AHMI Australian Health and Management Institute
CRICOS Code: 03595K | RTO Provider ID: 70252
AHMI – 2018 Learner Workbook Advanced Diploma of Business
BSBFIM601
Manage finance
Learner Workbook

AHMI – 2018Learner Workbook Advanced Diploma of Business
M a n a g e F i n a n c e s P a g e | 1
Table of Contents
Table of Contents...........................................................................................................................1
Candidate Details...........................................................................................................................2
Assessment – BSBFIM601: Manage finances.................................................................................2
Competency Record to be completed by Assessor........................................................................3
Observation/Demonstration..........................................................................................................4
Activities........................................................................................................................................5
Activity 1A......................................................................................................................................5
Activity 1B......................................................................................................................................6
Activity 1C......................................................................................................................................7
Activity 1D.....................................................................................................................................8
Activity 1E......................................................................................................................................9
Activity 1F....................................................................................................................................10
Activity 2A....................................................................................................................................11
Activity 2B....................................................................................................................................12
Activity 2C....................................................................................................................................13
Activity 3A....................................................................................................................................14
Activity 3B....................................................................................................................................15
Activity 3C....................................................................................................................................16
Activity 3D...................................................................................................................................17
Activity 3E....................................................................................................................................18
Activity 3F....................................................................................................................................19
Activity 4A....................................................................................................................................20
Activity 4B....................................................................................................................................21
Activity 4C....................................................................................................................................22
Activity 4D...................................................................................................................................23
Skills and Knowledge Activity.......................................................................................................24
Major Activity..............................................................................................................................26

AHMI – 2018Learner Workbook Advanced Diploma of Business
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Candidate Details
Assessment – BSBFIM601: Manage finances
Please complete the following activities and hand in to your trainer for marking. This forms part of
your assessment for BSBFIM601: Manage finances.
Name: _____________________________________________________________
Address: _____________________________________________________________
_____________________________________________________________
Email: _____________________________________________________________
Employer: _____________________________________________________________
Declaration
I declare that no part of this assessment has been copied from another person’s work with the
exception of where I have listed or referenced documents or work and that no part of this
assessment has been written for me by another person.
Signed: ____________________________________________________________
Date: ____________________________________________________________
If activities have been completed as part of a small group or in pairs, details of the learners
involved should be provided below:
This activity workbook has been completed by the following persons and we acknowledge that it
was a fair team effort where everyone contributed equally to the work completed. We declare that
no part of this assessment has been copied from another person’s work with the exception of where
we have listed or referenced documents or work and that no part of this assessment has been
written for us by another person.
Learner 1: ____________________________________________________________
Signed: ____________________________________________________________
Learner 2: ____________________________________________________________
Signed: ____________________________________________________________
Learner 3: ____________________________________________________________
Signed: ____________________________________________________________

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Competency Record to be completed by Assessor
Learner Name: _______________________________________________________
Date of Assessment: _______________________________________________________
The learner has been assessed as competent in the elements and performance criteria and the
evidence has been presented as:
Assessor Initials
Authentic
Valid
Reliable
Current
Sufficient
Learner is deemed: COMPETENT NOT YET COMPETENT (Please circle)
If not yet competent, date for re-assessment: ____________________________________
Comments from Trainer/Assessor:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Assessor Signature: ________________________________________________________

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Observation/Demonstration
Throughout this unit, you will be expected to show your competency of the elements through
observations or demonstrations. Your instructor will have a list of demonstrations you must
complete or tasks to be observed. The observations and demonstrations will be completed as well as
the activities found in this workbook. An explanation of demonstrations and observations:
A demonstration will require:
 Performing a skill or task that is asked of you
 Undertaking simulation exercise
The observation/demonstration will take place either in the suitable environment. Your instructor
will ensure you are provided with the correct materials to complete the task. They will also inform
you of how long you have to complete the task.
You should be able to demonstrate you can:
1. Plan for financial management
2. Establish budgets and allocate funds
3. Implement budgets
4. Report on finances
You should also demonstrate the following skills:
 Reading
 Writing
 Oral communication
 Numeracy
 Navigate the world of work
 Interact with others
 Get the work done.
Activities

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Activity 1A
Estimated Time 20 Minutes
Objective To provide you with an opportunity to review and analyse previous financial
data to establish areas which have generated a profit or loss.
Activity Identify an area of business and explain how you could use different forms of
current and present financial data to ascertain whether the department made a
profit or a loss.
You do not have to use actual figures from your business.
Profit and loss is the concept which play a vital role in determination of
companies profitability, it give the result whether company is in profit making or
giving losses.
IT shows the production of company and how much the part of it selling. It also
gives the expenditure incurred in the manufacturing of product and how much
does factory production cost.
It summarise all the cost and expenditure occurred by the company to reach the
manufacturing of the product.
We can use different period for the comparison of profit and loss to study the
past and current performance (Zulch, 2014).
For the comparison we can make different ratios to reach the decision.
 Sales: One should compare the sales of one year to another to find the
profit and loss. If sale is increasing the reason behind that is may be
increase in production unit or increase in selling price, if it’s in increase in
production unit then the effect should be proportionate on gross profit
 Cost of goods sold: Cost of goods sold is the cost incurred in production of
unit. It is calculated on per production unit. The reason behind fluctuation
is may be increase in production unit or increase in cost of material or
labour
 Labour and salary cost: It is cost of manpower incurred in production. The
reason of change is may be inflation.
 Other expenses: other expenses may include the rent, office expenses,
insurance and interest.

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Activity 1B
Estimated Time 15 Minutes
Objective To provide you with an opportunity to undertake research to review reasons for
previous profit and loss.
Activity Using your answer from the previous activity, explain how you would undertake
research to review the reasons for the profit or loss.
For reviewing the profit and loss
Sales : for income & Statement first thing is to review sale ; because it is the
major factor for gross profit and net profit
Cost of goods sold : it is cost related to manufacturing of product, include material
and all the expenses
Other expenses : all other sundry expenses incurred for the running the
organization successfully as rent, freight warehouse expenses etc.
Sources of income : other than sales a sources where we are earning an income ,
example dividend and other interest income.
Seasonality : if the profit are based on season work then it should be accumulated
according to that.
Net income : it is the one which gives the net return on the companies investment
(Brigham,2012).

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Activity 1C
Estimated Time 20 Minutes
Objective To provide you with an opportunity toreview business plan to establish critical
dates and initiatives that will require or generate resources in the next financial
cycle.
Activity Using your business plan, identify your business’ critical dates in terms of
income and resource use and generation.
Critical dates are those is the opening of financial year is that 1st of April.
Many of companies generate report quarterly or half yearly , for them critical
dates are the 1 day of quarter (Moyer, et. al. 2012).
Initiative required by the company for the next financial cycle are :
 Opening stock : it is the closing of the last year. It indicates the number of
unit left from production which is not sold in current years.
 Rent agreement: It is the one which change from one period to another. A
company should get its updated and revised as per the time needs.
 Working Capital: It is the change in current assets in respect of current
liabilities. If the change is positive then it is good for the company.
 Due Dates : One should remember for the payment of taxes on times all
the due dates regarding it

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Activity 1D
Estimated Time 15 Minutes
Objective To provide you with an opportunity to analyse cash flow trends.
Activity Explain how and why you would analyse your business’ cash flow trends.
Cash Flows : it is the statement which gives information regarding the
procurement and utilisation of resources
Canalisation of cash flows :
 Free cash flows: it is determined by subtracting capital expenditure and
dividends from operating cash flows ( Omotayo, 2015).
 Cash flow from investing activity : it is the flow from cash from
investment ,receivables , change in assets and liabilities and inventories
 Cash flow from financing activity: the resources from where the funds are
raised and spender. It include equity, debts interest paid, dividend paid
Format of cash flows is as under :
Cash flows from operating activities:
Consolidated net income Xxx
(Income) loss from discontinued operations, net of income
taxes —
Income from continuing operations Xxx
Adjustments to reconcile consolidated net income to net
cash provided by operating activities:
Depreciation and amortization Xxx
Deferred income taxes (xxx)
Other operating activities Xxx
Changes in certain assets and liabilities:
Receivables, net Xxx
Inventories (xxx)
Accounts payable (xxx)
Accrued liabilities (xxx)
Accrued income taxes Xxx
Net cash provided by operating activities Xxx
Cash flows from investing activities:

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Payments for property and equipment (xxx)
Proceeds from the disposal of property and equipment Xx
Other investing activities Xx
Net cash used in investing activities (xxx)
Cash flows from financing activities:
Net change in short-term borrowings (xxx)
Proceeds from issuance of long-term debt Xx
Payments of long-term debt (xxx)
Dividends paid (xxx)
Purchase of Company stock (xxx)
Other financing activities (xxx)
Net cash used in financing activities (xxx)
Effect of exchange rates on cash and cash equivalents (xx)
Net increase (decrease) in cash and cash equivalents (xxx)
Cash and cash equivalents at beginning of year Xxx
Cash and cash equivalents at end of period Xxx