STRATHFIELD COLLEGE
Strathfield College Pty Ltd
CRICOS Code:02736K National Code: 91223 ABN: 85168435667
Level 2 & 4, 84 – 86 Mary Street, Surry Hills, NSW 2010 AUSTRALIA
www.sc.nsw.edu.au email: info@strathfieldcollege.edu.au ASSESSMENT TASK 1
Assessment Details
Qualification code FNS50215 Qualification
Name Diploma of Accounting
Unit Code FNSACC503 Unit Name Manage Budgets and forecasts
Assessment Type Project
Instructions to the Candidates
Pre Requirement for this task
Student must review
• Lesson materials provided in class
• Examples used in lessons.
Instructions to Students:
• Please complete assessment task before 29 January 2017
• This assessment is to be completed according to the instructions given by your assessor.
• You must attempt all the questions.
• Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
• If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
• Please refer to the College re-submission and re-sit policy for more information.
• Copying or any kind of cheating is absolutely not permitted, if someone is found cheating or copying, will be debarred from the assessment and a disciplinary proceeding would begin.
• This assessment covers the following Performance Criteria
PC’s Covered: 2.1, 2.2, 2.3, 2.4, 3.1, 3.2, 3.3, 4.1, 4.2
Assessment Description
This assessment tool relates to the following unit of competency of ‘Manage budgets and Forecasts’. The delivery and assessment of this unit will be conducted over a period of 45 hours face to face training + 15 hours online learning (an overall 60 hours in three weeks’ time).
Assessment Task 1 – PROJECT
KEY REQUIREMENTS:
On the following pages you will find the various types of information.
Students are to read the information provided in the questions prior to answering the questions. Students will be allocated time to complete this assessment in class under the supervision of the Trainer/ Assessor.
If you are not sure about any aspect of this assessment or would like to discuss your particular needs, please speak to your assessor. Should you have a questions notify the Trainer/Assessor. The Trainer/Assessor will attend to you as soon as possible.
You must successfully complete all the questions included in this assessment tool.
Specific Instructions
This assessment consists of a comprehensive case study and followed by the several questions which need to be answered. Please answer all the questions or as instructed by your trainer / assessor. Students are permitted to use non-programmable calculators.
These task / exercises form part of your assessment for this unit; therefore it is essential that you complete these exercises.
When you complete each task / exercise, these need to be handed into the trainer to be checked.
Project (instructions)
This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation.
This assessment consists of one (1) project question. Please complete all requirements asked at the end of the project question. Students are permitted to use non-programmable calculators.
QUESTION 1:
The following are the account balance for Nguyen Ltd as at 31st December 2017
Mortgage $ 210,000.00 Inventory $ 60,000.00
Owners’ Equity $ 360,000.00 Investments (Shares) $ 11,000.00
Plant (net) $ 61,000.00 Land and Building $ 327,629.00
Accounts Payable $ 31,000.00 Cash at Bank $ 5,000.00
Accounts Receivable $ 136,371.00
Nguyen Ltd wants budgets prepared for the next six months. The expected credit sales for the six months ending 30th June 2018 (there are no cash sales) are as follows:
Estimated Sales (units) Jan Feb March April May June July
Assuming poor Market 15,000.00
10,000.00
8,000.00
7,000.00
10,000.00 10,000.00
10,000.00
Credit sales are expected to be collected in the following pattern:
• 60% of accounts are settled in the first month following the month of sale
• 3% discount will be available to 25% of those paying within the first month following the month of sale
• 39% of accounts are settled in the second month following the month of sale • 1% are bad debts
The accounts receivable balance as at December 31, 2017 included the December sales $80,500 and the sales from November of $146,250. Cost estimates and revenues are details below:
$ per unit $ per unit
Selling price 10 Advertising 0.25
0.21
Inventory (Purchases) 8 Administration
Variable selling expenses 0.75 Depreciation (Plant) 0.15
Interest Payments 0.41
In addition, dividends of $400 are expected to be received in May 2018, from investments. The sale of the investment in June 2018 should result in proceeds of $12,100.
All expenses are paid for when incurred except for purchases of inventory, 60% of which are paid for in the month of purchase and the balance in the following month. Closing balance of inventory are to be kept at 50% of the following months sale (units)
During this period no purchases or sale of plant or property is anticipated.
Required: Assume all firms operate in the same industry:
a) Budgeted Income statement for the six months ending 30 June 2018, showing net profit assuming poor market conditions
b) Monthly cash budget for the six-month period January – June 2018, assuming poor market conditions
c) Budgeted balance sheet as at 30 June 2018 assuming poor market conditions