Student Name Student Number
Unit Code/s & Name/s FNSACC501
Assessment Type ? Case Study/Written Report ? Assignment ? Project ? Other (specify)
Assessment Name Written Report/Case Study Assessment Task No. 2
Assessment Due Date Date submitted
Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.
Student Signature Date
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Instructions to Student
This is not a group assignment. Your report must be your own work. The assignment is to be submitted via Dropbox.
Refer to your text and learning resources for the format of the Report. You must use correct grammar, punctuation and appropriate professional language.
To achieve a satisfactory result, your assessor will be looking for your ability to satisfactorily answer each question listed in the assessment questions following.
Number of Attempts:
You will receive up to two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant sections / questions with you and will arrange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules.
Submission details Insert your details on page 1 and sign the Student Declaration. Include this template with your submission.
Assessment due date for submission: end of class in the week beginning 22 May 2017.
Assessment to be submitted via
• TAFE Queensland Learning Management System: Connect url: https://connect.tafeqld.edu.au/d2l/login
• Username; 10 digit student number
• For Password: Reset password go to https://passwordreset.tafeqld.edu.au/default.aspx
Note to Student An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide.
Cindy Dane has come to you after purchasing a mobile slushy machine business on 1 September 2016. The business cost $100,000 and was financed 50% owner Capital and 50% bank loan at 6% interest over 15 years.
Cindy has provided you with a Profit and Loss Statement and Balance Sheet for the last two years of the business’ trading.
The business currently has one old Van used to deliver the slushy machines. Cindy expects she will need to spend approximately $5,000 on maintenance and repairs of this vehicle, over the next 12 months. Cindy would like to upgrade the Van and expand the business by acquiring another vehicle and 4 more slushy machines.
Cindy is not sure whether to keep the existing Van or either purchase a new van/s, lease a new van/s or obtain second hand van/s.
Cindy also wants advice regarding options of which slushy machines to acquire and whether to lease or buy (new or second hand) extra slushy machines.
Cindy has worked in other people’s small business for the past few years and has decided to take this step of owning a small business as she wants to be able to take time off work in 5 years. She wants to grow this business so that it generates a $150,000 dividends for herself by that time. She also wants to ensure the business is stable and efficient so she can be confident that it will run with a minimum of her time required while she is not actively working in the business. Cindy likes the flexibility of a mobile business where she will not need to rent office space as administration tasks can be done in her home office/study.
1. Your client needs advice on
• recommended structure (base your response on recommending a small proprietary company)
• relevant legislation she must comply with
• risks and how to reduce these
2. Your client also requires assistance with her Capital Budgeting and Financing options, showing relevant calculations to support your answer (including WACC). You must include research about different asset acquisition options, different finance options and their costs and effect on cash flow.
3. You are required prepare budgeted profit and loss statement, budgeted balance sheet and budgeted cash flow based on past 2 years financials attached and capital budgeting and finance options.
4. You are required to analyse, using financial analysis techniques, and evaluate, the prior year and budgeted financial statements, using relevant calculations, with specific regard to your client’s objectives and profitability, efficiency and stability. Recommend how these can be improved.
5. You are required to prepare a Written Report and Finance Plan which includes the above. Refer to your text book and class notes for the Written Report and Finance Plan outline.
6. You must include a bibliography showing all texts and websites which you use in your research and report.
7. At two (2) points during the course of the assessment ((Draft 1 due week beginning 10 April and week beginning 24 April 2017)) you are required to submit a draft to Dropbox, including a “pretend” or “simulated” email requesting “client” feedback and checking progress against agreed criteria.