Reference no: EM133029150

BSBFIM801 Manage Financial Resources - Newton College

Part A- Calculations

1. Imagine you are a store manager of a sports retail store. You have a responsibility to make a budget for next quarter and need to circulate it to the senior management, peer leaders, consultants and employees. The store manager is responsible for the operational profit that is calculated by subtracting the COGS, rent and store wages from the merchandise sales. Imagine the sales budget is 850000 for next quarter and COGS, rent and store wages (manager wages and casual wages) are 30%, 10% and 15% of sales budget respectively.

Two weeks prior to the quarter commencing, a water main burst outside the store entrance severely restricting customer traffic pass the door. Council advises that the restricted access will continue for the next three months. The sales for the two weeks showed a 25 % reduction in sales.

a. Prepare a budget of sports retail store highlighting an operational profit. Identify what methods you will use to circulate the budget for next quarter and what are the areas that receivers of the budget need to understand.
b. Prepare the revised budget after knowing the situation a water main burst outside the store entrance.

2. Imagine you are a Finance manager of ABC Pty Ltd. and you have successfully prepared and implemented the required budget for your organization. You need to examine how you can review the management of the budget by examining the actual expenditure with the budgeted amounts and identifying and prioritizing significant issues. Below is the extract of the income statement of your organization showing budgeted and actual figures.

1. Compare the actual and budgeted data, identify the variances in $ and in % and highlight favorable and unfavorable variance.
2. Identify which areas company need to work on improving in the next budget after ranking the variances.
3. Describe corrective actions and its types and give suggestions as which type of corrective actions are good for your company.
4. Explain how you revise and renew budget priorities to meet operational contingencies and risk management.

Part B- Case Study:

1. Below table provided is the budgeted income statements of ACS Co. for 2020-21 and actual income statements of ACS Co. for 2019-20. You are required to compare the actuals with budgeted income statements and provide a detail analysis.

Do an evaluation and present in a report on the impact that financial decisions made by the management will have on the organisation's ability to meet its planned goals and objectives.

Attachment:- Manage financial resources.rar