Reference no: EM132474996 , Length: 2600 Words

FNSACC511 Provide Financial and Business Performance Information Assignment, Open Colleges, Australia

Assessment Tasks -

Part A: Written Report - Written report consists of the following assessment methods:

- Case study

- Problem solving

Part B: Presentation - Presentation consists of the following assessment methods:

- Demonstration/observation

- Problem solving

- Role play

- Evaluating

Part A - Written Report

Scenario: You are the Chief Financial Officer (CFO) of Ethical Trading Group Pty Ltd, working closely with the Financial Controller. The Managing Director has asked you to analyse their financial data and prepare some specific advice for the company, providing a realistic view of the business financial performance and compliance, assessing the financial potential of the business and identifying other important aspects that require attention, such as future funding requirements, risk and taxation issues. The written report, along with a five (5) minute presentation will be submitted at the next management meeting.

The analysis and advice are to be formulated into a written report and is to be split into two (2) parts:

Task 1 - a. You are to calculate the following groups of ratios for 2018 and 2019. Before you start compiling data for ratios you have to reconcile cash flow statements for 2019 to make sure that the statements are accurate and prepared as per company procedures and statutory requirements. You will have to present the ratios in an appropriate table in an Appendix to your report:

- Liquidity

- Activity

- Profitability

- Leverage

In the table, also document the formula used and your calculation inputs for each of the ratios.For the reconciliation and ratio calculation you will have to use the ETG Accounting data 2019 and as an appendix to your report, the Excel template provided.

b. Based on the ratios calculated above you are to advise on the profitability, efficiency and financial stability of the company. In advising the company, ensure that you evaluate and provide options on the following:

- Whether the profit is adequate

- How efficiently the assets are being used to generate sales

- What the reports indicate about the operational efficiency of the business

- Whether there are any short-term financial problems faced by the business

- The extent to which debt funds are used in the business.

Task 2 - Ethical Trading Group would also like analysis and advice on the following specific issues, before creating plan for next year. While providing advice, you must ensure that the analysis will help business in achieving their goals and objectives in 2020:

a. The financial performance, potential and viability of the business.

b. Three (3) major business risks and contingencies faced by the company and the risk management options relating to these risks, including rights and responsibilities.

c. Future cash flows and budgetary control.

d. Future funding requirements.

e. Features of short term and long-term sources of finance and compare different options and their processes.

f. Business compliance and statutory obligations, including those under:

- Corporations Law and Consumer Law: Identify and briefly explain two (2) compliance and obligation areas under each piece of legislation.

- Tax legislations, identifying significant tax issues of client: Identify and briefly explain 2 significant tax issues.

- Accounting standards and principles:Identify and briefly explain two (2) significant Accounting practices issues related to standards and principles.

Part B - Presentation

Instructions: You are now to present a snapshot of your written report at the management meeting of Ethical Trading Group Pty Ltd using PowerPoint. The presentation will need to be recorded as audio or video recording and must be approximately five (5) minutes in length. Please also provide your presentation as a PowerPoint file of no more than 10 slides.

Attachment:- Provide Financial and Business Performance Information Assignment File.rar