Reference no: EM132288061

Question 1:

Storm Steam Cleaning Services' organizational requirements include that their reports need to be clear and meet the statutory requirements of a Profit and Loss Statement. The below list shows their account balances.

Prepare a Profit and Loss Statements for Storm Steam Cleaning Services for the year ending 30 June 20XX ensuring they meet organisational and statutory requirements.

Describe the principles of accounting and financial systems including the difference between a debit and a credit and what accounting reports and financial systems are attempting to achieve.

Question 2:
Prepare a report reviewing the Aging Summary of O'Brien Exotic Shoes. Include a heading for your report and detail how healthy you believe the figures are and what risk there is for non-payment of the debts based on the figures.

Question 3:
The following sales performance indicators (in units) were identified for Elephant Corporation with consideration of high level performance using materials and processes that are environmentally friendly.

a) Prepare a budget based on a sales price of $8 and the budgeted outflows for the four quarters of $12,000, $22,000, $7,000 and $1,000.

b) You intend to send the budget to the supervisors and management. Prepare an email or a letter ensuring to sign off with your name to send to managers and supervisors along with the budget to ensure they are clear about the role of the budget, the need to update it monthly and the fact that the budget will be used as part of financial delegation. Financial delegation means that the budget will be used to make decisions about operations including how to reward or focus workers.

c) Insurance has increased the expenses by $500 per quarter and a decision was made to increase the sales price by $1. Prepare a new budget based on the figures in a) above but taking into consideration the new insurance contingency and resultant price rise. The price rise is expected to decrease orders by 5%.

d) How do the principles of internal control apply to cash disbursements? Include the need for authorisation in your answer and discuss how an accounts paid report fits.

e) An organisation usually require sales invoices to be consistently prepared including being in sequential order. How does this assist in the accounting process? How does this help the internal control system?

f) Which security procedures do you believe are necessary for handling cheques and cash?

g) Why is internal control important in a business? Include the following areas in your answer: checking the validity of cheques and card vouchers and matching batch items to receipt records and deposit facilities.

Question 4:
Comfort Blinds Industry furnishes you with the following information, from their last year of trading, i.e. 30/6/20XX. The client has identified their parameters as being:
• Current ratio to be no less than 2:1
• Quick asset ratio to be no less than 1:1
• Debit ratio to be no more than 0.60 or 60%

The management of Comfort Blinds Industry want you to model the financial statements by consolidating them into in the specific format required below. From the details provide an analysis and evaluation. Ensure your results are in a format suitable to meet needs of your target user.
• Profitability
• Liquidity
• Efficiency
• Financial Stability

Question 5:
a) Make an informed decision regarding a new item for inclusion on the personnel budget. Note: the response that there is no need for a new inclusion is not deemed satisfactory but a substitute would be acceptable provided it is not just a name change.
b) Refer to Zara Restaurant's Personnel Plan which is part of their financial data and determine the current allocations for resources for personnel i.e. actual costs to employ staff if the restaurant was in your nearest city e.g. Sydney, Melbourne, Brisbane, Gold Coast or Perth. Ensure to include your change from part a.

Question 6:
a) In the appendix of the business plan there is a Pro Forma Profit and Loss which details monthly figures. Identify which months details a profit and which months detail a loss and analyse the reasons why.
b) Using the internet undertake research to determine if these profit and loss figures seem currently genuine and obtainable. Present this research in Microsoft Excel form ensuring to reference figures from at least two comparable businesses referencing where you obtained the information.

Question 7:
a) Use the Control F (find) filter to discover how many times the term Cash Flow Statement is mentioned on the Zara business plan.
Cash Flow Statement is mentioned twice in the Zara Business Plan.
b) Referring to the Pro Forma Cash Flow in the appendix analyse the cash flow trends.

Question 8:
Identify and prioritize significant issues in Zara Restaurant's financial statements including comparative financial performances for review and decision making. To undertake this task locate the Pro Forma Profit and Loss details and find an issue with them for an Australian investor.

Question 9:
Prepare a review of the Zara Restaurant business plan, profit and loss statements and cashflows. Include the review in report form complete with a title and address such issues as how comprehensive the reports are, how accurate the reports are and how relevant they are to an Australian market.

Question 10:
a) For an Australian restaurant what statutory requirements for compliance and liabilities for tax would exist including Goods and Services Tax, Company Tax, Pay As You Go.
b) Regarding initiatives that will require or generate resources in the next financial cycle review the "milestone" aspect of the business plan and establish critical dates which are currently blank.

Question 11:
Zara Restaurant's Business Plan sets out a variety of financial reports including the start-up requirements, market analysis, sales forecast, administrative salaries, personnel plan, proforma profit and loss, proforma cash flow and proforma balance sheet. Before investing in such an opportunity it would be important to be confident about the figures and ensure that they consistently integrate between the reports.
Describe how you would undertake an audit trail between the reports ensuring that you provide examples of how figures interrelate between a report and actual allocations in another report that your find.
An investor would be expected to agree to these reports making the process important. To get you started note that the Start-up Expenses to Fund of $427,209 flows from the Start-up Requirements, through to the Start-up Funding, Retained Earnings in Proforma Balance sheet including the Proforma Balance sheet in the Appendix. Following this audit trail it can be seen that the number didn't change or disappear confirming the internal consistency of the report in this aspect.

Question 12:
a) Before investing in such an opportunity ensuring compliance with due diligence would be essential. Prepare a due diligence report if the restaurant was to be based in your nearest city e.g. Sydney, Melbourne, Brisbane, Gold Coast, Perth.
b) Prepare recommendations to ensure financial viability of the Zara Restaurant opportunity.

Question 13:
a) Read the article in appendix 2, Best Free Personal Finance Software, Yee. J and review the software options selecting the most suitable for Zara Restaurant's financial management requirements. Note that you are not limited by the options in the article but you must provide a review and a reason for your selection.
b) If you were considering the purchase of a Zara restaurant in Australia which style of expert would you most like to employ to assist you in your decision ensuring to justify your answer.

Question 14:
What requirements for financial probity would you have if you were considering purchasing a Zara Restaurant?

Question 15:
Explain the Australian, international and local legislation and conventions that are relevant to financial management in the purchase of this organization.

Attachment:- Advanced Diploma of Leadership and Management.rar