Provide financial business recommendations
Performance objective
You are required to demonstrate the ability to collect and analyse financial data to make practical financial business recommendations as well as identify budget discrepancies.
Assessment description
Using the scenario information supplied, you will collect and analyse financial data and prepare a report to management on the financial year. The report will contain an executive summary, analysis, prioritised recommendations and financial statements. The report will be prepared in accordance with organisational requirements.
Procedure
1. Read the scenario provided.
2. Read the Packett Packaging policies and procedures manual. Familiarise yourself with the organisation's chart of accounts, financial statement templates, etc.
3. Review the MYOB reports(for the financial year to 30 June):
a. Statement of Financial Performance(you created in Task 1)
b. Statement of Financial Position(you created in Task 1)
c. profit and loss budget analysis(on page.4)
Note: The Statement of Financial Performance and the Statement of Financial Positon may be obtained from your assessor.
4. Use data within reports, and additional data providedfrom page.3-6, to calculate standard financial analysis ratios. Calculate all those required by business policies and procedures.
Ratio examples:
- Debts / Total sales
- Total sales / COGS (to give you an idea of gross profit margin)
- (Total sales - COGS - expenses) / Total sales (to give you an idea of net profit margin)
5. Prepare a report to management. Include:
a. an Executive Summary (approximately one paragraph)
b. analysis, including budget analysis, ratios, trends, etc. (approximately one to two pages) and description oftechniques used to analyse data
c. prioritised recommendations (three to four brief recommendations), consistent with each other, based on data analysis and Policies and Procedures Manual from page. 7 -14, for example you may give recommendations on debt collection and bad debts.
Specifications
You must submit a report containing:
• an Executive Summary (approximately one paragraph)
• analysis (including budget analysis) (approximately one to two pages)
• prioritised recommendations (three to four brief recommendations).
Your assessor will be looking for:
• a report completed to organisational requirements from the scenario provided
• evidence-based recommendations that refer to data and analysis as support
• clear and practical recommendations that are compatible with other recommendations and the organisation's requirements, that are measurable and within a definite and appropriate time span, that are specific, and that are concise.
Task
Although the organisation has grown over recent years, the board of directors are very concerned about the current profitability of the business.
Attachment:- Assessment-Task.rar