Measures how profitable company for the owner the investment

BSBFIA402 Report on financial activity

Submission details





Assessment Date/s

The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Candidates are required to demonstrate the ability to collect and analyse financial data to make practical financial business recommendations as well as identify budget discrepancies.

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yourself with the organisation’s chart of accounts, Financial Statement

a. Balance Sheet

b. Profit and Loss

6. Prepare a report to management. Include:

a. an Executive Summary (approximately five pages)

e. Statement of Financial Position

f. Statement of Financial Performance

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Candidate: I declare that this work has been completed by me honestly and with integrity and that I have been assessed in a fair and flexible manner. I understand that the Institute’s Student Assessment, Reassessment and Repeating Units of Competency Guidelines apply to these assessment tasks.	Signature: ___________________

It is now the end of the financial year. In addition to the data contained in the organisational MYOB file, the following data is available:

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BSBFIA402 Report on financial activity

Bank charges
		7,127
Consultancy
		5,090
Hire purchase/lease charges
		534
Legal fees
		1,178
Postage/courier
		398
Repairs and maintenance – Office
		5,558
Staff uniforms – O/S
		51
Telephone expenses

Although the organisation has grown over recent years, the board of directors are very concerned about the current profitability of the business. Preliminary gross profit trend for the last four financial years appears below.

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The business currently has a superb and valuable relationship with its suppliers, who are able to provide the Technology Solutions with stock very quickly. The board is keen to maintain this relationship and not to risk any supplier relationship
unnecessarily.

The board is also enthusiastic about achieving results as soon as possible within the next financial year. Any recommendation with a longer timeframe should be set as a lower priority.

d. Financial Statements

e. Statement of Financial Position

BSBFIA402 Report on financial activity

Additional information



ABN/can	87 671 495 227/671 495 227


Postal Address	PO Box 4589, Brookvale, NSW, 2100


Email	packet-packaging-nsw@bigpond.com

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BSBFIA402 Report on financial activity

This report is an analysis of financial statements of Packett Packaging PTY LTD. This report has been prepared with an objective to develop analytical skills required to interpret the information (explicit as well as implicit) provided by the financial statements and to measure the company’s performance during the past few years. The financial statements are analyzed using traditional evaluation techniques as Budget Analysis.

Ratios are an important tool in analyzing the financial statements to measure the company’s Corresponding Liquidity, Profitability and Efficiency Ratios. Sincere attempts have been made to make this report error free but if any errors and omissions are found then I apologize for that.

Current Ratio = current Assets / current liabilities.

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Result Analysis

• Net Profit ratio

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The company needs to match the stocks with the current sale volume in order to reduce the obsolete products.

New system operation in order to reduce cost of goods sold.

BSBFIA402 Report on financial activity