Cash flow budget and debtor ageing summary identify the following report

BSBFIM601 Manage finances

Assessment Task 2- Report



Assessment site
Assessment date/s

1.Read the workplace scenario in the following task and the simulated workplace (case study) provided in the assessment task 1 Appendix.

2.Read and analyse the case study information (including business plan summary and previous financial data) to manage finances.

7.Any variations to this arrangement must be approved in writing by your assessor. 8.Submit your work with any required evidence attached.

9.See the specifications above for details of submission requirements.

Document	Assessment Task 2 BSBFIM601 Manage finances					Page 1 of 7
		Date implemented: September 2019	Date reviewed: April 2020

BSBFIM601 Manage finances

Performance objective

1.Read the case study.

2.Develop a variance report based on the format and template provided by Houzit.

b.Variances:

i.Complete an actual-to-budget variance report, using the template provided in the case study.

iii.Determine a trend of the average debtor days and the impact to the cash flow of Houzit.

d.Recommendations:

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		Date implemented: September 2019	Date reviewed: April 2020
International College of Melbourne \| CRICOS: 03416G \| TOID: 41136				\| admissions@icm.edu.au \| www.icm.edu.au

5.Prepare for and undertake the role-play presentation:
a.Arrange a time with Jim Schnieder, CEO of Houzit Pty Ltd (your assessor), to present an oral explanation of your variance report. Ensure that your assessor has copies of or access to documents you will be referring to.

b.Deliver the presentation of your variance report
i.Present your analysis of the effectiveness of existing financial management approaches including reviewing financial management software, managing risks of misappropriation of funds, ensuring systems are in place to record all transactions, maintaining an audit trail and complying with due diligence.

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Date created: September 2019		Date implemented: September 2019	Date reviewed: April 2020		Responsible by: Coordinator

Case study: Houzit Pty Ltd

Soon after the end of the first quarter, Jim Schneider the CEO of Houzit, asked you to follow up with Celina Patel, Houzit’s accountant, to see how the actual results compared with the budget you had prepared three months ago. You explained that you had a meeting with Celina that afternoon to get the results and that you would report back as soon as you had done some analysis.

‘That’s going to hurt us at some point’ Jim said. ‘Just a pity we could not get into some national magazines this quarter to promote the store offers. I’m sure that would have helped us exceed the budgets you set. I guess we will just have to spend that advertising money in the next quarter’ Jim said. ‘I still think we are running our wages and salaries a bit high. The industry benchmark for wages and salaries is close to 11% of sales’

Jim went on to explain, ‘One of our contingency plans in a slowing economy is to reduce our exposure to debt by applying our profits to the repayment of the long term debt. This will help reduce the interest burden on the business and take some pressure off the diminishing profits. It would also be of interest to determine the impact that our debtors has on the cash flow of the business from 2010/11.’

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Date created: September 2019		Date implemented: September 2019	Date reviewed: April 2020		Responsible by: Coordinator

Houzit Pty Ltd
	Qtr 1
Revenue
Sales	3,371,200
	1,955,296
	1,415,904
	42%

– Accounting Fees	2,500
– Interest Expense	28,150
	380
	42,500
	3,348
	790
– Advertising	150,000
– Cleaning	3,325
	16,150
	660,127
	3,100
	5,245
– Luxury Car Tax	12,000
– Fringe Benefits Tax	7,000
	37,404
	410,500
	19,741
	8,312

Total Expenses
Net Profit (before tax)

1,410,572
5,333
1,600
3,733

Cash flow analysis – GST	Qtr 1	AGED DEBTORS BUDGET	Qtr 1
	337,120		3,371,200
	279,988		22%
GST Payable	57,132	Total Debtors	741,664
			585,915
			111,250
			37,083
			7,417
		Total Debtors	741,664

Document						Page 5 of 7
		Date implemented: September 2019	Date reviewed: April 2020
				\| admissions@icm.edu.au \| www.icm.edu.au

BSBFIM601 Manage finances

Houzit Pty Ltd
Variance to Budget
xxx Quarter ended mmm-yyyy
	Budget-Qx	Actual-Qx	$ Variance	% Variance	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
		Calculation	Calculation	x%	F or U
	%	%	%	x%	F or U

	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
– Bank Charges	x,xxx	x,xxx	x,xxx	x%	F or U
– Depreciation	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
– Repairs & Maintenance	x,xxx	x,xxx	x,xxx	x%	F or U
– Rent	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
– Superannuation	x,xxx	x,xxx	x,xxx	x%	F or U
– Wages & Salaries	x,xxx	x,xxx	x,xxx	x%	F or U
	x,xxx	x,xxx	x,xxx	x%	F or U
– Workers’ Compensation	x,xxx	x,xxx	x,xxx	x%	F or U
			x,xxx	x%	F or U
Net Profit (Before Tax)	Calculation		x,xxx	x%	F or U
			x,xxx	x%	F or U
Net Profit	Calculation		x,xxx	x%	F or U

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		Date implemented: September 2019	Date reviewed: April 2020		Responsible by: Coordinator
International College of Melbourne \| CRICOS: 03416G \| TOID: 41136

	2009/10	2010/11	2011/12
Trade Debtors
Sales

	Assessment Task 2 BSBFIM601 Manage finances					Page 7 of 7
Date created: September 2019		Date implemented: September 2019	Date reviewed: April 2020