Sydney Metro College BSBFIA402 Report on Financial Activity & Analysis

This report, prepared for the BSBFIA402 unit, details a student's assessment of financial activity. It includes a BAS statement preparation based on provided cash payment and receipt data, analysis of financial ratios like debt-equity, interest coverage, fixed asset turnover, and return on investment, and the provision of financial business recommendations. The report uses data from Devine Café and Packett Packaging Pty Ltd to calculate and interpret financial ratios, offering insights into financial performance and strategies for improvement, such as leveraging debt, improving working capital management, and enhancing internal controls. The recommendations also cover aspects like inventory management, accounts receivable, and the importance of brand accounting and e-commerce integration. The report adheres to statutory requirements and current legislation, demonstrating an understanding of financial reporting and analysis. This report is available on Desklib, providing a comprehensive solution for students studying finance and business.

BSBFIA402 Report on Financial Activity
ASSESSMENT 1 COVER SHEET
Details of Assessment
Term and Year Term 4 2016
Assessment Type Prepare BAS statement and financial business recommendations
Due Date 6 oct, 2016 Class Room Lecture Hall 1
Student Name: Harminder singh
Student ID No: SMC20160623
Date: 6 OCT, 2016
Qualification : BSB40215 Certificate IV in Business
Unit Code: BSBFIA402
Unit Title: Report on financial activity
Assessor’s Name
Assessment Outcome Satisfactory Not Satisfactory
Student Feedback

BSBFIA402 Report on Financial Activity
Student Declaration: I declare that this work has been
completed by me honestly and with integrity. I understand that
the Sydney Metro College’s Student Assessment,
Reassessment and Repeating Units of Competency Guidelines
apply to these assessment tasks.
Assessor Declaration: I declare that I have conducted a fair,
valid, reliable and flexible assessment with this student, and I
have provided appropriate feedback.
Name: HARMINDER SINGH Name:
Signature:
HARMINDER SINGH Signature:
Date: Date:
6 OCT, 2016 Student was absent from the feedback session.
Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory (S) or Not Satisfactory (NS). A student can only achieve
competence when all assessment components listed under procedures and specifications of the assessment section are
Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYS (Not
Yet Satisfactory) is eligible for re-assessment.
Resources required for this Assessment
 All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint
 Upon completion, submit the assessment printed copy to your trainer along with assessment coversheet.
 Refer the notes on SMC eLearning (Moodle) to answer the tasks
 Any additional material will be provided by Trainer

BSBFIA402 Report on Financial Activity
Instructions for Students
Please read the following instructions carefully
 This assessment is to be completed according to the instructions given by your assessor.
 Students are allowed to take this assessment home.
 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.
 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 aspect of this assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment and re-enrolment policy for more information.
Procedures and Specifications of the Assessment
Candidates will demonstrate the ability to record revenue and expenses and complete a BAS statement, taking advantage of GST
credits in accordance with statutory requirements.
Candidates must attempt all the tasks given hereunder on a report format. They must complete the cash payment and receipt book
followed by a BAS preparation and visit the Australian Taxation Office (ATO) website (https://www.ato.gov.au/) to respond the GST
reporting. They must also calculate the financial analysis ratio and make necessary recommendations.
Your assessor will be looking for the following criteria:
 Compile financial information and data, calculate liabilities for tax in accordance with current legislation and revenue gathering
practices
 Prepare statutory requirement reports
 Provide financial business recommendations

BSBFIA402 Report on Financial Activity

BSBFIA402 Report on Financial Activity
Assessment 2
1. Report
 Executive Summary: Proprietor of Devine Café has purchased a Coffee Machine for $16500 of which he will be able to claim a GST Taxation of $
1500 against payable. Total Cash expenditure for the period is $19926 of which $1845 are done for personal purpose. Proprietor has purchased
fruits worth $600 including GST of $55 which he will use in the Café. Proprietor has incurred $330 as Conveyance expense.
 Cash payments and Receipts as per Appendix 1 and Appendix 2 (Provided separately in the Excel spreadsheet)
 BAS as per the pdf Attachment
 GST Reporting – included in BAS
 Ratio analysis
i. Debt: Equity Ratio = Debt / Own funds
10000 / 6000 = 1.67 times
ii. Interest Covering Ratio = Profit before Interest / Finance Charges
9714 / 15 = 647 times
(9714 = 11100 – 19926 + 18540)
iii. Fixed Asset Turnover ratio
Turnover / Fixed asset
11100 / 16500 = 0.673 times
iv. Return on Investment
Profit after Tax / Own funds
7674 / 6000 = 128%

BSBFIA402 Report on Financial Activity
2. Ratio analysis:
Packett Packaging Pty Ltd
Use data provided to calculate the following financial ratios and prepare recommendations report (500 words) which will enhance a financial performance of
Packett Packaging by identifying the significant issues and providing a control and direction of the organisation. Current Ratio
a) Quick Ratio = Liquid Assets / Current Liabilities
Liquid Assets = Current Assets – Stock; 130596 – 36000 = $94596
Quick Ratio = 94596 / 83896 = 1.1275 times
b) Working Capital = Current Assets / Current Liabilities
130596 / 83896 = 1.5566 times
c) Accounts Receivable Turnover = Turnover / Average Receivables
260000 / 23000 = 11.3043 times
Total Current Asset $130,596
Total Current Liabilities $ 83,896
Inventory $36,000
Net Credit Sales $260,000
Average Accounts Receivable $23,000
Owners’ Equity $114,567.89