Trainers Assessment Resource FNSACC XXXXXXXXXXVersion 3 March XXXXXXXXXXPage 1 of 16 ASSESSMENT 1: PROJECT STUDENT INFORMATION This information is to be handed to each student to outline the...

1 answer below »
Please do all the tasks and answer all the questions with good detailed answers


Trainers Assessment Resource FNSACC513 Version 3 March 2020 Page 1 of 16 ASSESSMENT 1: PROJECT STUDENT INFORMATION This information is to be handed to each student to outline the assessment requirements For this assessment, you are required to prepare an annual budget for a Patrick’s Cod Fishing Ltd using the information provided in Appendix 1-6. Task: Taking into account previous years figures, available current year figures and any additional information, you are to create an annual budget for your chosen business.  Undertake discussions with stakeholders (Your instructor will role play these parts) to determine budget objectives and set milestones and / or performance indicators  Discuss and review assumptions and budget parameters – review these during the budget process as needed. (Some assumptions are included in Appendix 6 for Patrick’s Cod Fishing Ltd).  Clearly details any Cash, expenditure and revenue items  Ensure your budget objectives are clear & conform with the business’ expectations, goals and objectives.  Include milestones and performance indicators to monitor financial performance  Include a detailed break down of your annual budget into seasonal periods as required by the business  Identify any financial risks and incorporate protection strategies according to business Details: Students should keep the following points in mind when creating the budget  Set profit targets/goals to reflect the business’ (Patrick’s) returns  Identify the non-current asset requirements and consider alternative asset management strategies  Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements  Select budget targets to enable ongoing monitoring of financial performance  Relevant taxes such as GST and BAS should also be included. Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals, expectation and objectives. should be carried out with your instructor, who will role play the relevant parts. Assessment Summary You are to submit the following evidence / perform the following tasks  Develop and submit your annual budget as outlined above This assessment is due on: __________________________________ FNSACC513 Version 3 March 2020 Page 2 of 16 ASSESSMENT 2: PROJECT STUDENT INFORMATION This information is to be handed to each student to outline the assessment requirements For assessment you are given the following information: (Please note, this information is relevant to Patrick’s Cod Fishing Ltd. If the instructor has decided to give students a different business model to work with, the instructor will provide different data). At the beginning of February, the following up to date figures are now ready for your review for Patrick’s Cod Fishing Ltd: In the past 3 months since asking you to prepare his budget forecast, Patrick’s business has performed as follows:  His catch for the 3 months has totalled 9,450kg  His Revenue has totalled $384,377  His business expenses have come to $332,362 Part 1: Prepare an 800 word written report discussing the following:  How has your budget matched up with actual figures?  What figures have been overestimated / underestimated?  What business milestones have been met or have fell short? Part 2: You must now adapt your original budget to incorporate and respond to the information given to you by Patrick. Undertake the following tasks:  Give a detailed comparison of budgeted forecasts and actual figures for the 3 month period – include comparison trends and other graphs as required to demonstrate the information clearly and demonstrate validity of analysis.  Prepare and analyse the budget variances  Prepare a recommendation to Patrick regarding his business’ performances and  Complete a reviewed budget taking into account the latest figures. Patrick’s goals are skill the same – is he on track? If not, what needs to be dome for Patrick’s business to get back on track? Are his goals too unrealistic? Complete a feasibility report answering these questions.  Prepare a report to give to Patrick (instructor) with your recommendations. This assessment is due on: __________________________________ FNSACC513 Version 3 March 2020 Page 3 of 16 ASSESSMENT 3 – Research & Questioning Submission details Students will use their online study time to prepare for answers to the following questions and submit softcopies of the answers. You must submit soft copy of your answers in a word document. Upload the softcopy on the link provided in the eLearning site. See instructions below for details. Instructions: · To be prepared on an individual basis. · Assessment will only be accepted if they have an assignment cover sheet on them signed by the student. · Students must provide detailed answer for every question along with relevant examples. · There is no word limit, but questions requiring you to ‘describe’, ‘outline’ or ‘explain’ should be reasonable in size, preferably ½ a page. · The Trainer/Assessor may further prompt and question in order to receive answers of appropriate quality and to verify the authenticity You are required to do research and type answers for following questions in a word document, Assessment Questions 1 Define the term ‘Corporate Governance’ 2 List 4 key elements of good corporate governance FNSACC513 Version 3 March 2020 Page 4 of 16 3 List and describe 4 principles of corporate governance 4 Give 3 examples of perceived disadvantages to budgeting 5 Define ‘Budgetary Control’ 6 What is the difference between single and double entry accounting? 7 Pedro's Pasta purchases a car for $8,800 using a loan from the bank suppler. Referring to double entry accounting, what are the two effects of action? Show how you would record the transaction in the ledger. DR CR 8 What is regression analysis? What benefits are there to this technique? FNSACC513 Version 3 March 2020 Page 5 of 16 9 List and describe the four different ratio types that make up a Financial Ration Analysis Classifying Ratio Description 10 Outline the calculation method used to determine the following profitability returns ratios. Operating return on assets Return on assets Return on total capital 11 What is meant by measures of variance? Explain how it is calculated FNSACC513 Version 3 March 2020 Page 6 of 16 12 List and explain 5 different measures of variance to be considered when developing an annual Variance Type Variance Explanation 13 Provide 5 different reasons (each) for an favourable market price variance, and adverse material price variance. 14 Give an example of a situation that would result in an accrued expense. What happens if the expense isn’t accrued? 15 What is a prepaid expense? When can this be used? Give an example FNSACC513 Version 3 March 2020 Page 7 of 16 16 What is cost underestimation? What does it result in? What usually causes this? 17 What is strategic misrepresentation? 18 How can strategic misrepresentation be minimised? 19 What are the key purposes / objectives of creating and using an annual budget? 20 What are the key purposes / objectives of forecasts? FNSACC513 Version 3 March 2020 Page 8 of 16 21 What is the importance of milestones and KPI's when budgeting / forecasting? 22 What information is needed in order to create an accurate financial forecast for a business? 23 Outline 9 different expenditure and revenue items that are relevant to budgeting and forecasting 24 Describe and compare the following forecasting techniques Time series forecast The Delphi Method Executive Opinions Forecasting FNSACC513 Version 3 March 2020 Page 9 of 16 25 List 3 common features and assumptions that are inherent in forecasting, regardless of the method used? 26 Describe the steps that are in most company budgeting procedures FNSACC513 Version 3 March 2020 Page 10 of 16 Appendix 1 – Patrick’s Cod Fishing Ltd Patrick is the proprietor of a Murray Cod fishing business called “Patrick’s Cod Fishing Ltd” which is located at Post Office Box 123, Newtown 2042. Patrick possesses the necessary licence from the State Fisheries Board at $20,000.00 per Cod Net. Patrick grows the Cod and sells them to export wholesalers. This means that for GST purposes, Patrick’s Cod Fishing Ltd is EXP and NCF. (That is all of his sales are GST free and he does not have to pay any GST on expenditure items.) Patrick is still entitled to claim the GST that he has to pay on his payments. Therefore you use the tax code NCG, NCF and FRE where appropriate. INFORMATION  Patrick has decided he wants you to prepare an annual budget for his operation. He states that business was very good last year, and enabled him to repay a number of outstanding personal debts. He provides you with the following figures:  He caught 42,300kg of Murray Cod  His yearly income totalled: $1,438,232  His yearly expenses totalled: $183,488  This gave him a yearly profit of: $1,254,744  He used the majority of this profit to repay large personal loans
Answered Same DayMar 23, 2021FNSACC513Training.Gov.Au

Answer To: Trainers Assessment Resource FNSACC XXXXXXXXXXVersion 3 March XXXXXXXXXXPage 1 of 16 ASSESSMENT 1:...

Nidhi answered on Apr 12 2021
123 Votes
COMPANY NAME:        PATRICK’S COD FISHING LTD.
(A)    ANNUAL BUDGET:    FOR THE PERIOD FROM NOVEMBER TO OCTOBER
    PARTICULARS
    ANNUAL BUDGET - NOV TO OCT
    BUDGET PER MONTH
    ASSUMPTIONS
    
    AMOUNT $
    AMOUNT $
    
    
    
    
    
    Sales
    
    
    
    [(4185 kg per month x 12 months) x $ 37.10 per kg]
    1,935,478.80
    161,289.90
    Assumption 2 of Appendix 6 -
Quantity of Sales in kg.: Considering the second assumption of appendix 6 "He has research to indicate that there may be fewer numbers of Cod within his fishing area, and his catch will likely reduce by 10%", taking into account the budget sales quantity after reducing it by 10%. Sales qty. per month comes out to 4650kgs * 90% = 4185kgs. If we compare it with actual qty of October i.e.3696kg this budget figure also seems very realistic to anticipate and project for whole year business.
Assumption 1 of Appendix 6 - Price of Sale quantity per kg.: Budget price per kg is $35 per kg and actual average price for October month per kg comes out to $ 36.36 per kg. Now considering the first assumption of Appendix 6 "His sale prices are expected to increase by 6% without effecting sales" now calculate the budget price for whole year we consider budget price i.e. $ 35 per kg and increase it by 6% = $35 per kg * 106% = $ 37.10 per kg
    
    
    
    
    Boat Expenses
    
    
    
    Petrol & Oil
    600,000.00
    50,000.00
    Budget expense and Actual expense for October month is same. So the same amount is considered for budget the expense for the yearly budget.
Assumption 3 of Appendix 6 – Saving of Petrol Expense: The assumption says “He expects he will be able to implement cost saving measures starting December which will possibly reduce his petrol expenses by 15%, however this will require a capital investment of $84,000. He would like a part of the budget to be dedicated to projecting whether this is a good investment”.
If we make this investment then the saving will be for 11 months from Dec to Oct and the amount of saving will be = $50,000 x 11 months x 15% = $82,500.
The amount of investment to be made for this saving of $82,500 is $ 84,000, which is higher than the amount of saving amount considering all facts it can be said that this option of investment is not a good option.
If the investment has some residual value for further years then it can be considered for the benefit in those years.
Hence we continue with the budgeted amount and not considering the savings.
    Depreciation of Cod Boat
    60,000.00
    5,000.00
    Considering the budget amount for budget the expense because it is a non-cash and one-time expense in whole year and doesn't reflect in actual every month.
    Cod Boat Registration & Insurance
    30,000.00
    2,500.00
    Considering the budget amount for budget the expense because it is a one-time expense in whole year and doesn't reflect in actual every month.
    Depreciation of Outboard Boats
    15,000.00
    1,250.00
    Considering the budget amount for budget the expense because it is a non cash and one-time expense in whole year and doesn't reflect in actual every month.
    Outboard Boats Registration & Insurance
    17,400.00
    1,450.00
    Considering the budget amount for budget the expense because it is a one-time expense in whole year and reflects in month of payment with good amount and Nil in other months.
    Repairs to Cod Boat Equipment
    54,000.00
    4,500.00
    Considering the budget amount for budget the expense because this expense is for repairs and to keep...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here