Sitxfin002 Interpret Financial Information - Assessment Answer

Assignment Task:

The purpose of this assessment is to assess the student in the following learning outcomes:

• Identify and interpret the range of financial information and reports required to monitor business performance.
• Interpret financial information and reports applicable to operational or departmental activities.
• Review financial information for impacts on operational activities and resolve discrepancies according to own level of responsibility.
• Routinely provide information on operational or departmental financial activities within required timelines.

Assessment/evidence gathering conditions

Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student can only achieve competence when all assessment components listed under “Purpose of the assessment” section are recorded as competent. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment.

Resources required for this Assessment

• Computer with relevant software applications and access to internet

• Weekly eLearning notes relevant to the tasks/questions

Task 1

Written Responses: Answer the following questions: 

1. What are meant by the terms assets and liabilities?

2. What is a bank statement and how does it assist in identifying discrepancies?

3. What is the GST, who pays it and how is it calculated when shown as a GST exclusive price and as a GST inclusive price?

4. Describe the differences between accrual accounting and cash accounting?

5. Explain the following:

(a). General ledger

(b). Chart of accounts

(c). Journals

(d). Double entry accounting

Task 2

Using the following ledgers and bank statement answer the following questions. 

Cash Receipts Journal

Task 3

Complete and answer the following table:

Task 4 A  

Nuria owns The Academies Travel Agency, in George Street Sydney and is thinking of buying new office furniture in three months’ time (December, 20XX) you have been quoted a total cost of $65,000. The old furniture will be sold at that time for $3,000. Assume an opening bank balance of $50,000 at the beginning of October. Other details include:

1. Iain estimates $70,000 sales for each month. Half these sales are received in cash and half are received in the next month as they are credit sales. October’s credit sales from September, amount to $35,000.

2. Purchases amount to 25% of sales (excluding old furniture) and are paid for in cash.

3. Labour costs are $20,000 each month.

4. Superannuation ($3,000), rent (3,000), energy bills ($2,000), miscellaneous ($2,500) are all paid monthly.

5. Courier costs to Embassies and customer Documentation amount to $1,000 per month.

6. Rates are paid once in October of $5,000.

Requirements:

1. Prepare a cash budget for each month for The Academies Travel Agency, with the view to advising Nuria whether she is in a position to pay $65,000 cash for the furniture at the end of the third month (December). Include also an accurate heading for this cash budget.

2. Suppose your balance at end was negative, what (new approaches) actions to rectify the problem would you consider?

3. Who would you consult and inform in relation to resource decisions?

Task 4B

Recalculate The Academies Travel Agency’s cash budget for the same period if:

1. sales still averaged $70,000 per month,

2. with sales averaging 90% cash and 10%, debtors for September were $ 6,000

3. purchases averaging 30% of sales

4. bank balance to start was $4,000

5. all else remains the same.

6. is there a problem with resource decisions?

Task 5

Please calculate the Increase/decrease in both dollar amount and percentage:

Task 6

Calculate the revenue budget and wages of the restaurant:

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