25 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61315 ADVANCED DIPLOMA OF MARKETING AND COMMUNICATION and BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT and BSB61218...

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25 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61315 ADVANCED DIPLOMA OF MARKETING AND COMMUNICATION and BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT and BSB61218 ADVANCED DIPLOMA OF PROGRAM MANAGEMENT | FINANCIAL MANAGEMENT 2_V6.5 ASSESSMENT 2 Course Name BSB61315 Advanced Diploma of Marketing and Communication BSB61015 Advanced Diploma of Leadership and Management BSB61218 Advanced Diploma of Program Management Subject/module Financial Management 2 Assessment method Part A: Written Responses Part B: Written Responses Weighting 50% Units of Competency BSBFIM601 Manage Finances Instructions 1. Assessments should be completed as per your trainer’s instructions. 2. Assessments must be submitted by the due date to avoid a late submission penalty. 3. Plagiarism is copying someone else’s work and submitting it as your own. You must write your answers in your own words and include a reference list. A mark of zero will be given for any assessment or part of an assessment that has been plagiarised. 4. You may discuss your assessments with other students, but submitting identical answers to other students will result in a failing grade. Your answers must be yours alone. 5. Assessments must be submitted through the submissions folder in myAPC.hub in MS Word format where possible, or in PDF as per your trainer’s instructions. Cover sheets are to be submitted as separate files. (Note if you do not have Microsoft Word software on your computer you can work in Google docs and download your completed task in the MS Word format prior to submission upload) 6. You must attempt all questions. 7. You must pass all assessments in order to pass the subject. 8. All assessments are to be completed in accordance with WHS regulatory requirements. 26 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61315 ADVANCED DIPLOMA OF MARKETING AND COMMUNICATION and BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT and BSB61218 ADVANCED DIPLOMA OF PROGRAM MANAGEMENT | FINANCIAL MANAGEMENT 2_V6.5 Assessment 2 Part A – Written Responses 1. Explain Cash flow Management. 2. What are the two important benefits of cash flow management? 3. List the three components of cash flow 4. What is the purpose of cashflow planning? 5. When preparing cashflow budget, what will you need to estimate? 6. Complete the following cashflow equation: ? + Estimated Sales – ? = Ending Cash Balance 7. Which component is generally the largest cash outflow in a retail business? 8. What are the two main financial statements prepared in a small business? 9. You have purchased a computer for your business and pay for it in full at the time of purchase with a business cheque ; write down the correct entry for the purchase that you made on behalf of the company. 10. If you knew that your supplier was going to be unable to meet your supply requirements in three months’ time what would you do? 11. What can improve the net cash flow of a business in the short term? 12. How does the analysis of financial reports help you? 13. Provide an example of Operating Activities in Cashflow statement. 14. A business shows the following result for a period a. Revenue $200,000 b. Cost of goods sold $150,000 c. Operating expenses $100,000 Calculate the Net income of the business. 15. Using the data above , find out the expected cash position at the end of month 2. Month 1 Month 2 Month 3 Opening cash position -$600 Total receipts $3020 $4680 $3716 Total payments $2840 $3217 $5960 Net cash flow Closing cash position 27 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61315 ADVANCED DIPLOMA OF MARKETING AND COMMUNICATION and BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT and BSB61218 ADVANCED DIPLOMA OF PROGRAM MANAGEMENT | FINANCIAL MANAGEMENT 2_V6.5 Assessment 2 Part B – Written Responses Answer the following questions in the spaces provided. 1. You have started a restaurant with your brother and your sister. At the end of the financial year total sales revenue was $160,000 and net profit after tax was $20,000. Your sister has suggested that the profit made during the year should be used to redecorate the premises; but your brother suggested that the money should be used in purchasing a new woodfire oven, so you could start selling take away pizzas. They have approached you in order to help on deciding how the $20,000 should be allocated for the next financial year. Your sister claims that if the $20,000 is used in redecorating the premises you could increase menu prices by 20%. Your brother argues that if a new wood fire oven is purchased, the restaurant would be able to sell at least 150 pizzas per month for at least $15.00 each pizza (total cost per take away pizza $4.50). a. What project would you choose? Why? How would you convince your shareholders that your choice is the right priority for the allocation of the $20,000? b. Who else would you consult with before making a decision between redecorating or purchasing equipment? c. What records would be necessary to keep if the funds are allocated to re- decorating the restaurant? 2. Explain why budgeting is important and why it should be implemented despite the size of the organisation. 3. What are the first and the last days of the Financial Year for a restaurant operating in Australia? a. How would these dates affect the preparation of your sales budget? 4. You are taking over your family business. All financial information is kept manually by your father (the owner) of the restaurant. The purchase budgets are currently produced manually by your mother and the financial information/budget forecasts are constantly inaccurate. a. What technological recommendations you would make to the owners? b. What software(s) would you recommend in order to improve the current situation? c. Describe the main advantages of using a software for developing and monitoring budgets in comparison to keeping manual records. 28 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61315 ADVANCED DIPLOMA OF MARKETING AND COMMUNICATION and BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT and BSB61218 ADVANCED DIPLOMA OF PROGRAM MANAGEMENT | FINANCIAL MANAGEMENT 2_V6.5 5. The following data was extracted from the Sales Budget of ABC Pizza Plaza. Please refer to the table below in order to answers questions a and b. Financial Year Budgeted Actual 2007/08 $ 350,000 $290,000 2008/09 $400,000 $250,000 a. Calculate and classify the variances as Favourable or Unfavourable for both years. b. Describe 3 different events that could possibly justify these variances and suggest relevant approaches that management could adopt in order to effectively manage the deviations found. 6. Adam Smith was responsible for managing his brother’s Coffee Shop for 2 months while his brother went on holidays. Unfortunately his brother did not budget very well for the weekly beverage supply and Adam was, every week, short of beverages. In order to solve the last minute beverage shortages Adam made weekly purchases in the local supermarket. Adam paid for the goods on his credit card and did not bother keeping the invoices. According to this scenario explain: a. What are the legal implications/record keeping requirements that were not met by Adam? b. What techniques would you suggest to the owner of the coffee shop in order to improve the budgeting accuracy for purchases of beverage stock? - END - Trainer Instructions Unit of Competency BSBFIM601 Manage Finances Grading System Session Plans Session 1 Session 2 Session 3 Session 4 Session 5 Session 6 Session 7 Session 8 Session 9 Assessment 1 Part A – Case Study/Practical Part B – Case Study/Practical Assessment 2 Part A – Written Responses Part B – Written Responses Marking Guide/Suggested Answers Assessment 1 Part A Assessment 1 Part B Assessment 2 Part A Assessment 2 Part B Activity Guide/Suggested Answers for Trainers Activity 1.1 Activity 2.1 Activity 3.1 Activity 4.1 Activity 5.1 Activity 5.2 Activity 6.1 Activity 7.1 Activity 8.1
Answered Same DayNov 01, 2021BSBFIM601Training.Gov.Au

Answer To: 25 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61315 ADVANCED DIPLOMA OF...

Nitish Lath answered on Nov 02 2021
128 Votes
Part A
Solution 1
The cash flow management can be defined as the process for tracking the movement of the cash i.e. analyzing the inflow and outflow of cash from the business and it helps in the identification of the trends in the movement of cash and thus tackling the problems with the cash flow (Susan Ward 20
20).
Solution 2
The two important benefits of the cash flow management include:
a) It helps in having the clear picture of the business operations and helps in analyzing the cash movement in the business.
b) It also helps in the identification of the problem of the cash flow in the future and it reduces the amount of time between the inflows and outflows of cash.
Solution 3
The three components of the cash flow statement are as follows:
a) Cash flow from operations: This covers the movement of the cash from the daily operations of the business such as cash collected from customers and cash payment made to suppliers.
b) Cash flow from investing activities: It determines the movement of cash from the acquisition and sell of the business assets such as cash spent for buying equipment or sell of equipment.
c) Cash flow from financing activities: Cash from financing activities includes cash generated through loans or by selling the ownership in the entity.
Solution 4
The main purpose of the cash flow planning includes identification of the deficiency in the cash balances and it helps in generating the positive cash balance in the future by reducing the gap in the cash inflows and cash outflows. It also helps in obtaining the external finance when required and it also ensures that the business is having sufficient cash foe meeting its obligations. It helps in minimizing the unwanted expenditure and ensures efficiency of the business.
Solution 5
The main objective of the cash budget is the prediction of the ability of the business to generate more cash as compared to the usage of the cash. There are various items which are included in the budget includes cash inflow from the sale of goods or services and cash needed for meeting the expenses and cash inflow and outflow from the investing and financing activities and the change in the cash balance in each period.
Solution 6
Beginning balance + Estimated sales – estimated purchase = ending cash balance.
Solution 7
The largest cash glow in the retail business is the purchase of the retail inventory and such retail business does not incur any expenditure in relation to the wages and manufacturing overhead.
Solution 8
The three financial reports which are generally prepared by all the entities include:
a) Income Statement: It shows the profitability of the business.
b) Balance Sheet: It shows the financial position of the entity.
c) Cash flow statement: this statement shows the movement of cash in the business (Woodruff, Jim 2020).
Solution 9
The journal entry for the purchase of the computer by the company is as follows:
Computer Debit
Accounts Payable Credit
Solution 10
It is very necessary to establish the good communication with the client and communication is the important way out to solve the...
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