Assessment Coversheet
Student Name CIT Number
Competency Title, Code and Banner Code Manage Finances (ACCT342 - BSBFIM601A)
Managing Finances (HOTL168C - BSBFIM601A)
CRN 43348 / 43870 / 43265
Assessment Type ? Written ? Case Study ? Project ? Presentation ? Other
Assessment Name Assessment Task 3 - Budgets
Assessment Date Assessment task 3a (DRAFT) is to be reviewed by your teacher: (Week 14).
Assessment task 3b (FINAL) is to be uploaded into eLearn by:
11pm, Thursday 28.5.20 (Week 15).
Student Statement: This assessment is my own work. Any ideas and comments made by other people have been acknowledged. I understand that by emailing or submitting this assessment electronically, I agree to this statement.
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Note to Assessor: Please record any reasonable adjustment that has occurred for this assessment.
Instructions to Assessor
Work, Health and Safety: A work health and safety check of the assessment environment is to be conducted prior to the assessment and any hazards addressed appropriately.
List the time, materials provided and assessment range and conditions on the next page
These sections should be detailed enough for multiple assessors to consistently implement the assessment and include details of location, time restrictions, level of assistance permitted (if any), WHS, environment protocols, etc. The student should have access to techniques, procedures, information, resources and aids which would normally be available in the workplace. Include if open or closed book.
Materials to be supplied may include: assessment paper, site plan, text, internet access, etc.

Information for Students: You may have two (2) attempts for this assessment.
• If your first attempt is not successful, your teacher will discuss your results with you and will arrange a second attempt.
• If your second attempt is not successful, you will be required to re-enrol in this unit.
Only one re-assessment attempt will be granted for each assessment item.
Time Allowed: Draft Assessment 3A is to be reviewed by your teacher class in Week 14. Assessment 3B (FINAL) is to be uploaded into eLearn by (Week 15).
Materials Provided: Assessment paper
Assessment Range and Conditions: Take home assignment to be completed individually.
Assessment Criteria: To achieve a Satisfactory result, your assessor will be looking for your ability to demonstrate the key skills/tasks/knowledge detailed in the Assessment Task to industry standard.
PART A – BUDGET (in Excel)
• Format and presentation of budget per given requirements (in Excel)
• Budget contains correct figures and all relevant information (in Excel)
PART B – PERFORMANCE REPORT (in Excel)
• Format and presentation of performance report is per given requirements
• Performance report contains correct figures and all relevant information
• Unfavourable and favourable variances correctly identified
PART C – BREAK EVEN ANALYSIS (in Excel)
• Correct amount of coffee sales in units calculated to determine break-even point
• Correct amount of coffee sales in dollars calculated to determine break-even point
• Correct number of actual coffees sold in the year calculated
• Workings included in response
PART D – BUSINESS PLAN
• Four items in the café budget that will significantly change due to change in opening hours correctly identified
• For each item, explanation of why the budgeted amount will change provided
PART E – Financial Reporting and Taxation requirements
• Refer to Australian & international Accounting Standards
• Determine conventions & laws relevant to reporting & management
• Detail taxation requirements for business entities
Assessment Task Instructions for Students
See next pages for detailed instructions
PART A – INCOME STATEMENT BUDGET
Coffee Cups Pty Ltd
Income Statement
For the year ended 30 June 2018
REVENUE
Sales $ 590,000
Less COST OF GOODS SOLD $ 177,000
GROSS PROFIT $ 413,000
Less OPERATING EXPENSES
Accounting fees $ 2,400
Advertising $ 3,700
Bank fees $ 250
Depreciation $ 1,530
Electricity $ 3,300
Insurance $ 2,600
Interest paid $ 1,600
Rent $ 34,000
Stationery $ 500
Superannuation $ 13,775
Telephone $ 2,600
Wages $ 145,000
Total Operating Expenses $ 211,255
NET PROFIT / (LOSS) $ 201,745
REQUIRED: Using the above income statement for 30 June 2018 as your starting point, you are required to prepare the income statement budget for the year ended 30 June 2019, taking into account the information below:
• Annual sales are expected to increase by 8%
• Expected gross profit margin is 70%
• Advertising costs are expected to increase by $900
• Depreciation charges are to remain the same
• Interest paid is to remain the same
• Annual rent will increase by 5%
• Wages paid are expected to increase by 5%
• Superannuation is 9.5% of wages
• All other operating expenses are expected to increase by 3%
• Briefly discuss who you would circulate the budget contents to and how they should implement it in their department.
Budget Policy: Your budget must be in the same format as the 30 June 2018 Income Statement above, and this budget must be prepared using Microsoft Excel, including appropriate use of formulas for calculations.
PART B – PERFORMANCE REPORT
Following on from PART A above, the actual profit results for the year, ended 30 June 2019 are in the Income Statement below:
Coffee Cups Pty Ltd
Income Statement (Actual)
For the year ended 30 June 2019
REVENUE
Sales $ 597,080
Less COST OF GOODS SOLD $ 238,832
GROSS PROFIT $ 358,248
Less OPERATING EXPENSES
Accounting fees $ 2,800
Advertising $ 1,700
Bank fees $ 260
Depreciation $ 1,530
Electricity $ 3,700
Insurance $ 2,700
Interest paid $ 1,600
Rent $ 35,700
Stationery $ 500
Superannuation $ 11,410
Telephone $ 2,600
Wages $ 120,100
Total Operating Expenses $ 184,600
NET PROFIT / (LOSS) $ 173,649
REQUIRED:
(i) Using the figures from the Actual Income Statement for the year ended 30 June 2019 above, and the Income Statement Budget you prepared for the year ended 30 June 2019 (in Part A of this assignment), prepare an Income Statement Performance Report for the year ended 30 June 2019.
You must use the format provided in the example performance report solution for Topic 9 on eLearn (ie you must include actual results, budget figures, $ variance, % variance and indicate whether the variance is favourable, unfavourable or on budget). Microsoft Excel must be used for this report including appropriate use of formulas for calculations.
PART C – BREAK-EVEN ANALYSIS
You are reviewing the actual figures for the year ended 30 June 2019 and want to analyse coffee sales. You have separated your total costs of $423,432 into fixed costs and variable costs (check this figure back to the actual COGS and Operating expenses). Total Fixed costs = $264,158 and Total Variable costs = $159,274. You have determined that coffee sales represent 75% of total sales and that the costs relating to selling the coffee represent 75% of both fixed and variable costs.
Assuming an average coffee sale of $4.50 per cup, calculate the following, showing your formulas and workings:
1. What is the break-even amount of coffee sales in dollars (total $ value of sales)
2. What is the break-even number of coffees that need to be sold (# coffees)
3. How many coffees were actually sold for the year?
PART D – BUSINESS PLAN
1. You are in the process of preparing the budget for the year ended 30 June 2020. You have reviewed a copy of the cafés business plan which states that in December 2019 the café plans to change its opening hours from 8am – 4.30pm to 5.45am - 5.00pm. List four contingencies in the café budget that will significantly change compared to the actual results for the year ended 30 June 2018.
2. For each item, explain to the personnel why the budgeted amount will change.
3. In what ways could other personnel contribute to the effectiveness and integrity of the business plan?
PART E – Financial Reporting and Taxation requirements
1. Outline the statutory tax lodgements that the company would need to comply with for 30.6.19. Include in your outline at least four different types of tax returns to be lodged and the deadlines the company would have to meet.
2. Describe the principles of accounting that would be expected of the company refer specifically to Australian Accounting Standards and the financial reports that must be prepared each year.
3. There are conventions and laws that are relevant to financial reporting and financial management in Australia and overseas. Explain two of these laws and two these conventions. In what ways do these laws and conventions enhance the integrity of financial reporting and financial management within an organisation?
4. Is the company required to be audited each year? In what ways would an audit add to the integrity and quality of the financial management system? Make reference to fraud and the misappropriation of funds.
To comply, you should provide two or three paragraphs for each question for Part E.