Manage Budget and Financial Plans Assignment
Assessment description
This is the second of two assessments. There are two parts in this assessment Part A and Part B.
In response to the scenario provided, you will create a simple spreadsheet budget to capture monitoring information. Using information provided to you by your assessor, you will then use the budget spreadsheet to produce a report on expenditure in accordance with organisational policies and procedures. You will also modify a contingency plan. Using the scenario information supplied, you will respond to a number of scenario tasks. You will collect and analyse financial data and make recommendations to improve existing processes. You will also create a plan to implement and monitor solutions
PART - A
Task 1
1. Read through the scenario provided in Appendix 1 to this assessment task and complete tasks A and B.
2. Design and develop a spreadsheet to capture budgeted and actual figures to produce a variance report.
3. Access actual budget figures from relevant managers and accounting systems (assessor).
4. Monitor and record actual figures.
5. Consider feedback from team members.
6. Produce a variance report as per organisational requirements. (budgeted figures from assessment 1)
Task 2
1. Consider the scenario, tasks and financial information contained in the appendices 3 and 4 of this assessment task.
2. On a separate electronic document, explain the following:
a. budgeting
b. cash flow
c. basic accounting principles
d. GST
e. ledgers and financial statements
f. profit and loss statements.
Part B
Task 3
Role
You are the Senior Accountant. As part of your role, you will need to complete the following tasks.
As you are aware, one risk to the strategic plans of Big Red Bicycle (BRB) is bad debt and poor cash flow due to large trade debtor balances. Consider the following:
- According to its policies, BRB offers 30 day terms to debtors.
- BRB does not currently train sales staff on credit terms.
- There is currently no enforcement of credit terms.
- Warehousing of stock is expensive at current leased premises.
- Many bicycles need to be thrown out if parts rust; this problem exacerbates the problem of waste expense.
You have the following information from the Statement of Financial Position and current ledger accounts in the electronic accounting system (MYOB AccountRight).
Task 4
In addition to its Australian business, Big Red Bicycle is considering manufacturing a new range of cheaper bicycles in Indonesia. The following information is available:
- The Indonesian plant has capacity to manufacture 8,000 units.
- Big Red Bicycle's strategic goal is to generate a pretax profit of $1,000,000 for the next financial year for Indonesian operations.
- Clients will pay a maximum of $500 per bicycle
- Possibility exists for move to Indian plant with capacity for 10,000 units.
- Market for bicycles is growing rapidly and BRB will be able to sell all units produced.
- Limited ability to renegotiate costs with suppliers.
- Pricing and cost information is as follows.
Bicycle price per unit - $500 (excl. GST)
Current variable costs per unit - $250
Fixed costs - $1,280,000
Complete the following.
1. State how many years you will need to keep GST records in order to satisfy ATO requirements?
2. Complete the GST budget on the following page to anticipate GST liability.
Attachment:- Assignment File.rar