Reference no: EM133145603
BSBFIN501 Manage budgets and financial plans
Task 1: Describe the following the accounting principles of accounting. Explain each one with an example.
The Revenue Principle:
The Expense Principle:
The Matching Principle:
The Cost Principle:
The Objectivity Principle:
Task 2: Visit the Australian Tax Office website and identify the records relevant to current legislations regarding the following:
Sales records:
Purchase/expense records:
Year-end income tax records:
Records relating to payments made to employees:
PAYG withholding records relating to business payments:
Goods and Services Tax (GST):
Task 3: How often does an organization need to perform an audit trail to make sure all transactions are recording with due diligence?
Task 4: Give some examples for the following costs:
Direct cost
Indirect cost
Fixed cost
Variable cost
Step cost/Semi variable cost
Task 5: Sales Budget
From the information given, calculate and write down all possible variances (units or dollar amounts as applicable) in the variance columns stating whether they are favourable (F) or unfavourable (U).
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Budget
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Actual
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Variance
(Total)
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Qty
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$
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Sales - Product A
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Units
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900
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950
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Sales - Product B
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Units
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1 200
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1 180
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Sales - Product C
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Units
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1 500
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1 650
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Sales - Product A
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$/Unit
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10
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9
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Sales - Product B
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$/Unit
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12
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14
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Sales - Product C
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$/Unit
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15
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16
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Production - Product A
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Units
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1000
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1 100
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Production - Product B
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Units
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1 200
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1 320
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Production - Product C
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Units
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1 800
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1 780
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Raw material X
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$
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5 700
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6 875
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Raw material Y
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$
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10 500
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10 230
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Raw material Z
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$
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7 200
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7 476
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Task 6: Dissemination of budgets and financial plans.
List the ways by which dissemination of budget and action requirements takes place. How can an organisation negotiate any changes required to be made to budget/financial plans with relevant personnel?
Task 7: Fees Budget Scenario.
The Suburat Medical Centre, located in an affluent suburb, provides a 24-hour medical service to the residents. A recently recruited employee has been asked to help the management with the preparation of a fees budget for January 20X1and is provided with the following information:
• Forty-five per cent of patients pay in cash when services are performed, and those insured claim refunds from their medical funds. The fee charged to the patients is $25.
• Fifty-five per cent of the patients are accepted on bulk billing, where the fee charged is $19.
• The number of patients expected for consultation/treatment in January 20X1 is 1700.
Show how the fees budget will be prepared.
Prepare contingency plans for the organisation above if they don't reach the required target of patients?
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Suburat Medical Centre
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Fees budget - January 20X1
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Fees receivable in cash
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$
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Fees receivable from bulk billing
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Total fees
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Task 8: Expense budget scenario.
Prepare a selling expense budget for the month of February 20XX for Dajan & Co. The sales for February are expected to be $120000. The bases to be used for budget purposes are as follows:
• Annual fixed expenses are allocated equally to each month.
• Sales staff salaries are equal to 4% of sales.
• Depreciation of sales vehicles is an amount of $18000 per annum.
• Sales staff insurance is 2.5% of total sales staff salaries.
• The advertising budget is currently $19200 per annum.
• Sales vehicle maintenance costs the organisation 2% of sales revenue.
• Freight out is calculated at 0.65% of revenue.
Workings:
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Item
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$
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Salaries
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Depreciation
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Staff Insurance
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Advertising
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Vehicle Maintenance
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Freight
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Total
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Task 9: Preparing Profit & Loss and Balance sheet using Spreadsheet:
Complete the following P & L and Balance sheet.
P & L Statement IBC Pty Ltd July 1, 2013 to June 30, 2014
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Gross sales
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346,400
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Les: sales returns and allowances
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1,000
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A. Total Business Income
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Cost of Goods Sold:
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Beginning Inventory, July 2012
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160,000
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Add:
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Direct material
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90,000
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Direct labour
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50,000
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Factory overhead
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2,000
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Less:
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Closing inventory, June 2013
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100,000
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B. Cost of Goods Sold
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C. Gross Profit (A-B)
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Expenses
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Salaries
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68,250
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Utility bills
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5,800
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Rent
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23,000
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Office supplies
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2,250
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Insurance
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3,900
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Advertising
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8,650
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Telephone
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2,700
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Travel and entertainment
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2,550
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Dues and subscriptions
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1,100
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Interest paid
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2,140
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Commission paid
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1,250
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Owner's drawings
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11,700
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D. Total expenses
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Net Profit (C-D)
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Task 10: GST Calculations.
John is the owner of a fish and chips shop in Parramatta. His total sale for the month of February was
$24,000 including GST. His purchase was $18,000 for the same month. Calculate the following.
(i) GST received
(ii) GST paid
(iii) Net GST payable
Task 11: GST and Cash Flow Statement
A company forecasts the following transactions during the next financial year which will affect its cash flow. (All ATO dues and ATO credits are expected to be settled during the year.)
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$
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Cash sales, 10% GST not included
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80 000
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Credit sales for year, including 10% GST
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176 000
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Cash receipts in respect of credit sales - budget year
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140 800
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Cash receipts in respect of credit sales - previous year
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11 000
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Cash purchases, 10% GST not included
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90 000
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GST payable to ATO
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12 000
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GST input credit from ATO
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24 000
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Wages
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120 000
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Other payments, including 10% GST
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33 000
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Prepare a budgeted cash flow statement assuming that the opening bank balance was $30,200.
Workings:
Task 12:
Part A: Accounts Receivable Collection Schedule and Cash Flow Statement. (4 marks) Part B: Create an EXCEL file and complete the calculations through using formula. (4 marks) (Please attach a screenshot of the excel work sheet at the end of assessment at appendix 1)
Scenario: Stock & Co., a manufacturing company need to produce a cash flow budget as part of an overdraft application with their bank. They collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team. The following are some of
Stock's budgeted figures:
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Credit sales
$
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Purchases
$
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Wages
$
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November
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39 000
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26 975
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3 185
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December
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41 600
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31 200
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3 900
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January
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23 400
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52 650
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3 600
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February
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37 700
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53 300
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3 470
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March
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27 300
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58 175
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3 380
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Budgeted cash at bank on 1 January is $5590.
Though credit terms of sale are payment by the end of the month following the month of supply, Stock & Co. can expect half of the sales to be paid on the due date, with the other half being paid during the following month. Creditors are paid during the month following the month of supply. Wages are paid in the month they are owed.
Utilising the following tables for format, prepare a cash budget for the quarter 1 January to 31 March 20XX.
Task 13: Decision making and judgements.
Based on the calculations in TASK 12 (A and B) what went wrong?
What are the consequences of those wrongs?
What organisational protocols should be followed for reporting if loss is inevitable? Determine and access resources and systems to manage financial management processes within the work team
What support can be provided to the team members to ensure that proper management of finances is in action? How can the organisation to ensure that documented outcomes are achievable, accurate and comprehensible in the near future?
Attachment:- Manage budgets and financial plans.rar