Reference no: EM132474719
BSBFIM601 Manage Finances Assessment Task - Review Project and Debtor Management
TASK SUMMARY: This assessment task requires you to review the profit and loss statement for 2018 - 2019, as well as the cash flow statement for Grow Management Consultants.
RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS ASSESSMENT
- Computer and Microsoft Office
- Access to the internet for research
- Profit and Loss Account 2018 - 2019
- Cash flow statements 2018 - 2019
SUBMIT - Report on performance, including revisions to budget. Debtor management project.
INSTRUCTIONS - It is now one year later and you are required to review the profit and loss account for 2018 - 2019, as well as the cash flow statement.
The Principal Consultant has also asked you to focus on reviewing the conference costs as while there was very positive feedback from the conference and the company wishes to run it next year, there needs to be revisions to the budget and a potential price increase for the conference fee to make the conference more profitable.
The Principal Consultant would like you to report on a proposed conference fee for next year using 10% increase in all costs and assuming 150 people will attend the 2020 conference. The Principal Consultant would also like a 20% return on the conference costs.
Complete the following activities:
PART A - Analyse financial information
Analyse the information provided in the profit and loss account and cash flow statement including:
- Review of overall performance and gross/net profit margins.
- Calculation of variation in actual versus budgeted amounts for each income source.
- Calculation of variation in actual versus budgeted costs, focusing particularly on conference costs.
- Recommended revisions to the budget for conference costs for 2020.
- Proposed conference fee for 2020 conference assuming attendance of 150 people and to make a profit of at least 20%.
Based on your analysis of the profit and loss account, develop a short report.
PART B - Report on debtor management
Review the aged debtor summary provided to you by your assessor to identify issues within the financial report.
Analyse the information in the report noting that the company's usual terms of payment are 10 days from invoice.
Using the Internet, research best practice debtor management and make notes on your findings.
Provide a report based on your analysis. Your report should include:
An explanation of the information in the aged debtor report.
Analysis of any issues with the company's aged debtor processes.
Develop at least 3 recommendations that could be adopted by the company in response to your analysis. This will also be based on the debtor management research you conducted.