Plan investment strategies and direct cash management functions

BSBFIM601 Manage finances / Assignment

Assessment Outcome:

Assessment Conditions:




3 Implement budgets	3.1 Circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations




	3.6 Ensure compliance with due diligence
4 Report on finances


	4.4 Evaluate the effectiveness of financial management processes

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BSBFIM601 Manage finances / Assignment

• Lack of planning
• Leadership failure
• Ignoring customer needs
• Inability to learn from failure
• Lack of capital
• Poor location
• No succession plan

• Manage cash

month basis

5. Explain the following fundamental accounting concepts:

BSBFIM601 Manage finances / Assignment

6. Explain the following fundamental accounting concepts:

Matching Concept - The matching principle requires that revenues and any related expenses be recognised together in the same period. Thus, if there is a cause-and-effect relationship between revenue and the expenses, record them at the same time. If there is no such relationship, then charge the cost to expense at once. This is one of the most essential concepts in accounting, since it mandates that the entire effect of a be recordedme reporting period.

Full Disclosure Concept - The full disclosure concept is an accounting principle that requires management to report all relevant information about the company’s operations to creditors and investors in the financial statements and footnotes. In other words, GAAP requires that management tell external users material information about the company that they can use to base their decisions on.

• Investing in research and development

8. Provide five (5) examples of financing decisions

9. Provide three (3) examples of financial management decisions.

• capital budgeting

Training Organisation 91345/ CRICOS Provider Code 03057C

10. Explain the difference between financial accounting and management accounting.

Liquidity Ratio - Liquidity ratios are some of the most widely used ratios, perhaps next to profitability ratios. They are especially important to creditors. These ratios measure a firm’s ability to meet its short-term obligations.

Solvency Ratio - Solvency ratios measure a company’s ability to meet its longer-term obligations. Analysis of solvency ratios provides insight on a company’s capital structure as well as the level of financial leverage a firm is using.

• Gross Profit - Gross profit = – cost of goods sold

• Net Profit:Total -Toses = Net Profit

WEEK 3 (20 marks)

ASSESSMENT ACTIVITY: RESEARCH

2. Explain and find one (1) example of a Bilateral or Regional Trade Agreement

A bilateral trade agreement is one made between two contracting parties, and a regional trade agreement is one made between two or more contracting parties that share some common denomination known conceptually as “region.” The purpose of such agreements is to reinforce trade relations between the members. In this age of globalisation, the world trading order is based on the World Trade Organisation (WTO) Agreement, which is a multilateral treaty. Within the WTO framework, many bilateral and regional trade agreements have been concluded to offer additional trade benefits and privileges to the contracting parties, in line with the broad principles set out in the WTO Agreement

• Company Tax - is a * imposed by a jurisdiction on the income or capital of corporations or analogous legal entity countries impose such taxes at the national level, and a similar tax may be imposed at state or local levels. The taxes may also be referred to as or .

Goods and Services Tax (GS.) - The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by
consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

•
submitted to the (ATO) by registered business entities to report their tax obligations
•	Superannuation - are the arrangements put in place by the

•

•
It is usually paid throughout the year as you earn the income. For example, if you work for an employer, your employer will deduct tax from each pay and send it to the Australian Taxation Office (ATO) on your behalf.

5. What does International Commercial Terms (INCOTERMS) mean?

The goods and services tax (GST) in Australia is a value added tax of 10% on most goods and services sales, with some exemptions (such as for certain food, healthcare and housing items) and concessions (including qualifying long term accommodation which is taxed at an effective rate of 5.5%).

WEEK 4 (20 marks)

BSBFIM601 Manage finances / Assignment

	$42 000
	$33 000
	$45 000
	$10 000
Food Purchase	$20 000
Closing Food Stock	$20 000
	$25 000
	$40 000
	$25 000
	$1 200
Rates (Council Fees for emptying Rubbish Bins, Landscaping and Street Cleaning)	$1 500
Decorations (Christmas Trees or Flowers for Table Centre Pieces)	$700
	$2 300
	$2 900
	$2 500

	$	$
	25,000 42,000 33,000 45,000	145,000

Inventory: Food	$25,000
Inventory: Beverage	$23,800
Bank Loan	$15,500

BALANCE SHEET TEMPLATE

Assets	$	Liabilities	$

We can increase net profit by manage the Cost of Goods Sold in the food and beverage. It can tell that there’s too much food and beverage stock that have a limited time to use or can be wasted when they expired. So, it’s very important to look after the stocks.

VC003 College of Sports & Fitness – Assessment Cover Sheet 22-06-2017
International College of Capoeira Pty Ltd trading as ’College of Sports & Fitness’ ABN 90 125 114 730/ Registered Training Organisation 91345/ CRICOS Provider Code 03057C

• the exercise of reasonable skills and diligence;

• adherence to professional statements and standards

Q3. What are “Business Ethics” and Professional “Ethics”?

Business Ethics - Business ethics is a guideline for business policies and practices regarding potentially controversial issues such as corporate governance, , bribery, discrimination, corporate social responsibility and fiduciary responsibilities. La business ethics, while other times business ethics provide a basic framework that businesses may follow to gain public acceptance.

An audit trail consists of records that document every step in a business transaction. This may mean invoices for payments issued or sales contracts documenting revenue. Payroll and other human resource records prove correct treatment of employees. Startups and small businesses must pay close attention to maintaining such records. A complete audit trail proves to investors or lenders the validity of information on the financial statements and meets government record keeping requirements for tax purposes.

An audit program should be planned, taking into account a situation and importance of the processes areas to be audited, as well as the results of previous audits. Audit criteria, scope, frequency, and maintenance methods should be defined. The selection of auditors and the performance of audits and the impartiality of the audit process. Auditors do not rely on their own work.

Q6. CASE STUDY:

externally, for example alerting the auditors to the existence of the slow-moving stock, or seeking advice from your professional body. If the situation remains unresolved, you may have to remove yourself from the conflict. The clearest way to disassociate yourself from misleading financial accounts would be to resign. However, this would only be an option to be exercised, as a last resort, in the most extreme circumstances. Resignation alone would not help to resolve the situation. It would be advisable to take legal advice before considering resignation. You should document, in detail, the steps that you take in resolving your dilemma, in case your ethical judgement is challenged in the future.

Week 6: Cash Budget and Debt Collection (10 marks)

May June July August September	$120 000 (actual) $145 000 (actual) $50 000 (budget) $150 000 (budget) $140 000 (budget)

1. Prepare a cash budget for the 3 months, July to September to examine the cash flows projections (Use the spreadsheet template to prepare the cash budget).

1.

BSBFIM601 Manage finances / Assignment

	24,000	29,000	5,000
	43,500	10,000	30,000
	30,000	90,000	84,000
	97,500	129,000	119,000
Cash Payments:
Supplies:
	20,000		30,000
		30,000
	40,000	40,000	40,000
	25,000	25,000	25,000
Total cash payments	85,000	95,000	95,000
Net cash flow	12,500	34,000	24,000
	-50,000	-37,500	-3,500
	-37,500	-3,500	20,500

3. What possible contingency plan you can implement to avoid the forecasted cash flow shortfall -We have to make sure that we are able to collect all payments on time, otherwise we would not be able to pay pending payments.

VC003 College of Sports & Fitness – Assessment Cover Sheet 22-06-2017
International College of Capoeira Pty Ltd trading as ’College of Sports & Fitness’ ABN 90 125 114 730/ Registered Training Organisation 91345/ CRICOS Provider Code 03057C

Required:

1. Show what the existing report on cash collection from accounts receivable looks like.

BSBFIM601 Manage finances / Assignment

2.

3.	After analysing the data which policy you would recommend to improve the collection process for
the month of May, June and July?

VC003 College of Sports & Fitness – Assessment Cover Sheet 22-06-2017
International College of Capoeira Pty Ltd trading as ’College of Sports & Fitness’ ABN 90 125 114 730/ Registered Training Organisation 91345/ CRICOS Provider Code 03057C

Your plan will need to be supported by wide-ranging research, providing a strong rationale for changes proposed.

The business plan or project plan must present a comprehensive and logical position which is followed through with control measures for implementation and review.

indicators in key results areas

▪ Consult with key stakeholders to develop performance objectives and measures through