Detailed Assignment: Managing Budgets and Financial Plans

This assignment solution addresses the key aspects of managing budgets and financial plans, as outlined in the BSBFIM501 unit. It covers preparing and implementing financial management approaches, including accessing budget and financial plans, clarifying details with relevant personnel, negotiating changes, and preparing contingency plans. The solution includes answers to various activities and case studies, such as preparing contingency plans, improving employee performance, analyzing general ledgers, and monitoring contingency plans. It also delves into financial records, organizational improvement plans, and the analysis of financial statements like profit and loss statements and balance sheets. The summative assessments include a detailed analysis of the Wesfarmers financial report, covering its structure, financial statements, and disclosures. The assignment emphasizes the importance of effective communication, resource management, and strategic planning in achieving financial goals. The solution provides a comprehensive overview of budget management, financial planning, and analysis techniques relevant to the business environment.

Running head: MANAGE BUDGET AND FINANCIAL PLAN
Manage Budget and Financial Plan
Name of the Student
Name of the University
Authors Note
Course ID

1MANAGE BUDGET AND FINANCIAL PLAN
Table of Contents
Answer to Activity 1A:..............................................................................................................2
Answer to Activity 1B:..............................................................................................................2
Answer to 2A:............................................................................................................................2
Answer to 2B:............................................................................................................................3
Answer to 2C:............................................................................................................................3
Answer to 3A:............................................................................................................................4
Answer 3B:.................................................................................................................................4
Answer 3C:.................................................................................................................................5
Answer 3D:................................................................................................................................5
Answer activity 4A:...................................................................................................................6
Answer activity 4B:....................................................................................................................7
Answer 4B 2:..............................................................................................................................8
Answer 4C:.................................................................................................................................8
Summative Assessments............................................................................................................9
Section A:...............................................................................................................................9
Answer 1:...............................................................................................................................9
Answer 2:...............................................................................................................................9
Answer 3:.............................................................................................................................10
Answer 4:.............................................................................................................................11
Answer 5:.............................................................................................................................12

2MANAGE BUDGET AND FINANCIAL PLAN
Section B:.................................................................................................................................13
Answer 1:.............................................................................................................................13
Answer 2:.............................................................................................................................13
Answer 3:.............................................................................................................................13
Answer to 4:.........................................................................................................................14
Section C:.............................................................................................................................14
Bibliography:............................................................................................................................15

3MANAGE BUDGET AND FINANCIAL PLAN
Answer to Activity 1A:
Guidelines that are helpful in preparing the line of work are as follows
a. Performing a risk assessment
b. Recognizing the critical operations of business
c. Identifying the threats
d. Defining the responsibilities for each element of plan that are in charge of every stage.
Answer to Activity 1B:
The purpose of contingency plan is to enable the organization to return back to its
regular business operations as soon as possible due to an unforeseen event. The five possible
contingency plans that can be implemented are as follows;
a. Contracting out or subcontracting the human resources and other purposes of the tasks
b. Finding the inexpensive or inferior quality “raw materials and consumables”
c. Restructuring the organizations to lower the labor costs
d. Strategies for lowering the “costs, wastage, stock and consumables”
e. “Succession planning”
Answer to 2A:
Person who may be informed for budget/financial plans in the organization are as
follows;
a. Senior management: They will be required to see the entire details regarding the
budget plans
b. Accounts department: They can enter the figures in the appropriate software and
develop the necessary lines of budget.

4MANAGE BUDGET AND FINANCIAL PLAN
c. Budget committee: They are accountable for constant checking of income and
expenses against forecasts.
d. Managers: They are accountable for producing the bulk income and their decisions
make huge effect on the profitability and viability of the premises.
e. Establishment staff: The head of subdivision sets down the section by clarifying the
general budget context.
Answer to 2B:
The performance of Sam can be improved to lift his motivation. These are as follows;
a. Communicating the clear anticipation
b. Making sure that the performance appraisals are constant
c. Making the employee development a priority
d. Empowering the employee to do their job in a correct manner
e. Using the correct technologies.
Answer to 2C:
Hardware and Software:
The hardware and software are used in companies or industries that have their own
requirement of purchasing technology and related products. The software and hardware
provide finance for these products or produces a financing package which meets the need of
borrower.
Human, physical or financial resources:
The “physical and financial resources” are considered vital to be left out of attention.
Any type of business that are handling physical goods should be capable of getting physical

5MANAGE BUDGET AND FINANCIAL PLAN
resources which must be assured of their supply. “Physical facilities plants, machines” and
office are required.
Record keeping systems:
Record keeping system is referred as the process based on which the records of the
business are formed, captured, preserved and disposed. The scheme also makes sure that the
preservation for evidence purpose, accurate and effective update, timely obtainability and
“control of access” only by the approved personnel.
Specialist advice or support: The specialist advice provides answer to any question which
helps the team members in saving time and making sure that their roles are performed in a
uniform way.
Answer to 3A:
On analysing the general ledger it is found that majority of the cost has occurred
towards vehicle expenditure. The business has also occurred cost towards the office
equipment and has incurred cost in notes payable of $25,000 and $15,000 respectively. The
company may be facing the problem of purchasing more and more goods instead of paying
cash. The higher accounts payable will simultaneously contribute to higher debt and may
result in the problems of liquidity.
Answer 3B:
The causes of cost variation are as follows;
a. Changes in the market with the changes in the price of raw materials
b. Unanticipated events, such as accidents and legal accidents
c. Business plans such as the expenditure or marketing

6MANAGE BUDGET AND FINANCIAL PLAN
The cost expenditure meeting can be take in the following ways
a. Communicating the details of its everyone in the company
b. Providing the training to those people that do their roles
c. Reviewing the plans anytime there are personnel, operational and technological
changes.
Answer 3C:
The process involved in monitoring the contingency plans are as follows;
a. Communicating the details regarding the contingency plan all through the
organization
b. Distributing the amended plans all through the company
c. Performing the audits of the plans from time to time by reassessing the risks
d. Comparing the actual level of performance in the contingency plan
Answer 3D:
OPTION 1: Calculate GST & report quarterly SUMMARY
1
A GST on Sales $
G1 Total Sales $
1
C WET
$
-
Include GST YES 1E LCT
$
-
G2 Export Sales $ - 4 PAYG Withheld $
G3 Other GST-Free Sales $ -
5
A
PAYG income tax
instalment
$
-
G1
0 Capital Purchases $
6
A FBT instalment
$
-
G1
1
Non-capital
Purchases $
7
C FTC over claim
$
-
8
A $
PAYG tax withheld
1
B
GST on
purchases $
W1 Total Salary & Wages $
1
D WET refundable
$
-

7MANAGE BUDGET AND FINANCIAL PLAN
W2 Amount Withheld $ 1F LCT refundable
$
-
W4 No ABN $ -
5
B PAYG instalment credit
$
-
W3 Other amount $ -
6
B FBT credit
$
-
W5
total amounts
withheld $ -
7
D FTC credit
$
-
8
B $
OPTION 1: Pay a PAYG instalment amount quarterly
T7 $
PAYMENT OR
REFUND
Is 8A more than 8B? YES
FBT INSTALMENT
Your payment
amount $
F1 $ -
F2 Est FBT for year $ -
F3
Varied amount
payable $ -
F4 Variation Code
Answer activity 4A:
Financial records that can be kept by an organization are as follows;
a. Receipts
b. Payments
c. Wages and superannuation
d. Bank reconciliation
e. Inventory
f. Orders
g. Invoice
h. Aged debtor reports
i. Financial statements employee records
j. Employee pay records

8MANAGE BUDGET AND FINANCIAL PLAN
The methods an organization can store the records are as follows;
a. On-premises
b. Colocation
c. Public cloud
d. Private cloud
Answer activity 4B:
Earnings growth:
Earnings growth can be defined as the yearly compound annual growth rate of the
earnings for the purpose of investment. When it is noticed that the dividend pay-out ratio is
the same, the dividend growth rate is equivalent to that of the earnings growth rate. Earnings
growth rate is regarded as the key value which is needed when the “discounted cash flow”
model or the “Gordon’s model” of growth is used for the purpose of stock valuation.
Earnings stability:
Earnings stability simply implies that the company is successful in producing a fairly
predictable pattern of earnings. This can be considered as the desirable record of strong gains.
In other words, earnings stability is regarded as the measure of how constantly those incomes
have been produced over the time. A stable incomes progress generally happens in the
businesses where the growth has highly expectable outline.
Return on equity:
Return on equity can be defined as the measure of financial performance that is
computed by dividing the net earnings by the “shareholders equity”. This is because the
equity of the shareholders is equivalent to the assets of the company minus the debt. Return
on equity can be considered as the measure of how effectively an organization is using the

9MANAGE BUDGET AND FINANCIAL PLAN
asset of the company to produce profits. The “return on equity” is expressed as the
percentage and can be calculated for any company if the net income and equity of the
company both represents a positive numbers.
Answer 4B 2:
To obtain an understanding and value a business, stakeholders are required to stare at
the value of the financial position. This can be done by examining the financial statements.
Apart from this the current ratio divides the “current assets by current liabilities” which is
frequently used to determine the capability of the company to meet its short-term
requirements. A satisfactory current ratio differs across the industry but must not be lower
than the suggested impending liquidation or so high that it gives an indication of a needless
build up cash, receivables and inventory.
The financial position of the company tells the investors regarding the over-all well-
being. A financial analysis of the business’s financial reports together with the notes in the
yearly report is necessary for any type of serious investors that are waiting to understand and
value the company correctly.
Answer 4C:
The organizational improvement plan are as follows;
a. Engaging with the people: “Employee engagement” is considered as the highly
written and talked about issue in the present business. A strong understanding of the
corporate strategy all through the labour force must be developed. This will help in
building trust. Employees should know that their managers and executive care about
them as people will remain committed for their success.
b. Leveraging higher impact leadership practices: Communication is regarded as the
key in the modern day organization. It is viewed as the main task which the leaders

10MANAGE BUDGET AND FINANCIAL PLAN
have and it is also a weakness for an organization. Communicating clearly in a simple
language, creatively and interactively regularly regarding the subjects such as
departments and organizations performance targets can help in improving the
workplace.
c. Recognizing and removing internal roadblocks: It is important to recognize and
remove the internal roadblocks. This can be done by bring into line with the
“competitive differentiation” strategy with the company’s policies and procedures.
People should work around the policies and work process to get the things done.
Summative Assessments
Section A:
Answer 1:
The financial report of Wesfarmers for 2019 has been considered. The content page of
the annual report provides that overall group structure, performance overview, message of
chairmen, managing director report and leadership team. While the working and financial
review provides about the company’s office works, sustainability performance, climate
related financial disclosure and independent assurance statement. The financial report makes
necessary disclosure regarding the governance, board of directors and remuneration report as
well. The financial statement are also disclosed in the report which is signed and approved by
the director and independent auditor’s report. Information relating to shareholdings have been
disclosed for better understanding of the external users of report.
Answer 2:
Contents of the Wesfarmers document;
Overview  2019 year in review
 Organization structure

11MANAGE BUDGET AND FINANCIAL PLAN
 Performance review
 Chairman’s message
 Director’s report
 Leadership team
Operating and financial review  Office works
 Organization’s sustainability
performance
 Climate-related financial disclosure
 Independent limited assurance
statement
Governance  Director’s report
 Remuneration report
Financial statements  Financial statements
 Notes to financial statements
Signed reports  Declaration of director
 Independent auditor’s report
Shareholder and ASX information  Shareholder information
 Investor information
 Financial history of five year
 Corporate directory
 Wesfarmers companies
Answer 3:
Profit and Loss Statement
Period Ending: Dec-19 Dec-18

12MANAGE BUDGET AND FINANCIAL PLAN
Revenues:
Product 20,000 15,000
Service 25,000 20,000
Total revenue 45,000 35,000
Costs of sales:
Product 8,000 6,000
Service 10,000 8,000
Total costs of sales 18,000 14,000
Gross profit 27,000 21,000
Operating expenses:
Research and development 2,500 2,200
Sales and marketing 1,400 1,200
General and administrative 1,520 1,300
Depreciation and amortization 1,200 1,000
Total operating expenses 6,620 5,700
Income (loss) from operations 20,380 15,300
Interest and other income (expenses):
Interest income 4,500 3,750
Interest expense 2,200 2,000
Other income (expenses) 1,550 1,250
Total interest and other income (expenses) 8,250 7,000
Income (loss) before provision for income taxes 28,630 22,300
Provision for income taxes
Net income (loss) 28,630 22,300
Weighted average number of shares:
Basic 5 4
Diluted 5 4
Net income (loss) per share - basic 6,362.22 6,371.43
Net income (loss) per share - diluted 6,362.22 6,371.43
Answer 4:
The organizational requirements are as follows;
a. To improve the accuracy of recruitment procedure which results the company to hire
an appropriate person that matches the requirement of job.
b. Understanding business strategies: The organizational requirements involve
understanding about the business strategies and human resource use.
c. Effectively managing the resources to attain the organizational goal

13MANAGE BUDGET AND FINANCIAL PLAN
d. Exceeding the minimum productivity to make a successful organization
e. Making sure that the people meet their anticipation
Answer 5:
A collaborative teamwork has have been developed by me in a following manner
Step 1: Building teams on the basis of individual strengths
Step 2: Encouraging “collaborative spirit”
Step 3: Encouraging “open-mindedness”
Step 4: Rewarding “innovation”
Step 5: Spreading the “delegation of tasks”
Answer to 6:

14MANAGE BUDGET AND FINANCIAL PLAN
Section B:
Answer 1:
Three aspects of basic accounting principles are as follows;
a. Accrual principle
b. Consistency principle
c. Economic entity principle
Answer 2:
The information that is required to be reported to the ATO are as follows;
a. Payroll reporting
b. Monthly or quarterly business activity statements
c. Financial year reporting
Answer 3:
Setting up the right record keeping system for the business will assist in doing the
work efficiently, meeting the legal requirements and strengthening the customer relations.
There are certain types of record keeping requirements for the business. Laws which are
applicable to the business will help in determining the time period up to which the records
will be kept. If an individual is using electronic record keeping system, it is necessary that
one should produce the hard copy of the record to the “Australian Taxation Office”.
While for auditing, the audit work papers represents the documents which can be kept
as record evidence during the “financial statements auditing, internal management auditing”,
information system auditing and investigations. Auditing “working papers” can be used to
support the work done for audit so that an assurance for audit can be done in agreement with
the necessary auditing standard. They represent that the audit work has been in a planned
manner.

15MANAGE BUDGET AND FINANCIAL PLAN
Answer to 4:
Techniques involved in managing budget are as follows
a. Incremental budgeting will take the figures of last year and adds or subtracts the
percentage to determine the present year budget
b. Activity based budgeting is regarded as another technique to manage the budgeting in
a top down manner.
c. “Value proposition budgeting”
d. “Zero-based budgeting”
Section C:
Report on improving the financial plan are as follows;
a. Recovering the outstanding debt: Chasing up the several outstanding payment and
implanting conditions on sale by giving the buyer with terms and conditions to pay
the debt.
b. Reducing or rearranging the expenditure: Arranging the deferred or periodic payment
for the larger expenditure. Budget should be prepared for changing the amount of
stock one can purchase.
c. Selling the unwanted assets can be considered as the better way of getting some cash
and reducing the storage costs. This is helpful in spreading the cost over the longer
period.
d. Consolidating the debt: It is important to look at the current debt and combining them
in a low interest or a lower fee product.

16MANAGE BUDGET AND FINANCIAL PLAN
Bibliography:
Sadiq, K., 2019. Australian Taxation Law Cases 2019. Thomson Reuters.
Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D., 2016. Australian Taxation
Law 2016. OUP Catalogue.