please find the attached files needed for the Assessment. I also included the criteria for grading. Thanks
Assessment Task – Portfolio of Evidence FNSACC414_AT1_PE_TQM_V1.3 FNSACC414_AT1_PE_TQOL_V1.3 Student Name Student Number Unit Code/s & Name/s FNSACC414 Prepare financial statements for non-reporting entities Assessment Name Assessment 1 Assessment Task No. 1 of 2 Assessment Due Date As per due dates in Connect Date submitted Assessor Name 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 Instructions to Student This task requires you to answer the questions within this task, and submit additional answers within Microsoft Excel. Use the space provided in this assessment paper for your written answers using a font no smaller than 11 points. Students are to complete this task in their own time, no time restrictions, and are allowed full access to notes and learning resources. Materials to be supplied: · Assessment Task · Microsoft Excel template FNSACC414_AT1_TMP_TQM_v1 · Learning resources Information / Materials to be provided by the student: · Computer and word processing software · Internet access and ability to access and navigate Connect Work, Health and Safety: · follow TAFE Queensland Student Rules · access TAFE Queensland Student Services for any additional support · conduct risk assessments prior to any assessment task to ensure the safety of all participants and the environment · ensure an ergonomically safe work environment to complete all assessment tasks Assessment Criteria: To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard: Explain and demonstrate understanding of key accounting conventions and legislation, particularly relating to non-reporting entities Calculate and analyse financial ratios, including liquidity, profitability and activity ratios Develop cash flow statement in accordance with AASB107 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 (if relevant) Insert your details on page 1 and sign the Student Declaration. Include this form with your submission, along with your marking criteria sheet (with personal details completed). Due Dates: Refer to Unit Study Guide TAFE Queensland Learning Management System: Connect url: https://connect.tafeqld.edu.au/d2l/login Username; 9 digit student number For Password: Reset password go to https://passwordreset.tafeqld.edu.au/default.aspx> Instructions to Assessor This assignment is written based on prescribed text and additional online research. · Students to complete all requirements listed in this assessment. · This is an unsupervised written assessment. · Assessment documents to be uploaded to Connect for marking. · This is an untimed assessment. · Students are allowed access to any notes, workbooks and the internet to complete the assessment. · Students must complete their assessments as individuals · Usual office WHS requirements should be met by students · Physical conditions are at the students’ discretion · Interactions with team members or supervisors should be limited to general instructions and clarification or explanation of the assessment requirements. · Contingencies if conditions cannot be met are at the discretion of the Assessor. · Please refer to marking guide to ensure consistency, validity and fairness of student outcomes. Note to Student An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide. Part A 1. Classify the following as Asset, liability, revenue, expenses or owners’ equity. Motor Vehicle Accounts Payable Capital Sales Interest Received Depreciation Wages Cash at Bank Bank Loan Rent Received Drawings Office Equipment Accounts Receivable Rent Paid Land Credit Card Bank Fees Interest Paid 2. List 3 Financial statements that business entities use on a regular basis. For each statement, explain at least 2 advantages and at least 2 disadvantages of using the statement. 3. What purpose do financial statements have for the following users: a) Managers / Business Owners b) Suppliers c) Investors d) Government Regulators/Agencies 4. Name the Governing body that issues Accounting Standards 5. With reference to Statement of Accounting Concepts (SAC) 1 and the Corporations Act 2001 a) Define a Reporting Entity and contrast it to a Non-Reporting Entity b) Explain the reporting requirements of each type of entity. 6. Identify 2 key pieces of legislation affecting taxable transactions and summarise the key features of both pieces of legislation. For each piece of legislation, please provide at least 4 features. Part B You are the bookkeeper for Delizio’s Delicatessen. Your employer has asked you to prepare a range of financial ratios to help the management team understand the financial progress of the business. In the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 you have been provided with comparative Profit and Loss and Balance Sheet figures for the 2018, 2019 and 2020 financial years. You are required to: 1. Complete the Ratio Calculation Sheet on the Part B tab. In the “Calculation Used” column, write the formula to be used for each ratio. 2. Calculate the ratios listed on the sheet for the 2019 and 2020 financial years and record them on the sheet. Include all your workings for each ratio; and record all answers to 2 decimal places. 3. Comment on what the ratios indicate about the operation of the business, the current position of the business of the future prospects. Identify any areas of concern. 4. Go to the Australian Tax Office’s Small Business benchmark website https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/Benchmarks-by-industry/ Find the benchmark figures for a Delicatessen for 2019-20 financial year and note down the following figures for a business with a turnover equivalent to Delizio’s: · Average Cost of Sales · Average total expenses a) Gross Profit ratio i) Calculate the benchmark Gross Profit ratio using the calculation: 100% – Average Cost of Sales __________________________________________________________________________ ii) Compare the benchmark Gross Profit ratio calculated in i) to Delizio’s Gross Profit ratio previously calculated on your spreadsheet. Comment on Delizio’s performance compared to the industry standard (benchmark Gross Profit ratio). __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ b) Net Profit ratio i) Calculate the Benchmark Net Profit ratio using the calculation: 100% – Average total expense __________________________________________________________________________ ii) Compare the benchmark Net Profit ratio calculated in i) to Delizio’s Net Profit ratio previously calculated on your spreadsheet. Comment on Delizio’s performance compared to the industry standard (benchmark Net Profit ratio). __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 5. Explain the advantages and disadvantages (minimum of three) of using ratios and comparison techniques to analyse financial data. Please record your answer below. Part C In the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 you have been provided with a summary of transactions for Henry & Henry for the year ended 30 June 2021. Henry & Henry are a partnership providing legal services in South-East Queensland. It is organisational policy of Henry & Henry that they produce annual cash flow statements in accordance with AASB 107 Statement of Cash Flows. This enables Henry & Henry to demonstrate (to their external stakeholders) their ability to meet their cash flow requirements. (Complete Ch.2 of the text before attempting this question). IGNORE GST FOR THIS QUESTION. You are required to: 1. Reconstruct the Account Receivable General Ledger Account and the Accounts Payable General Ledger Account. The Bank figures calculated in these reconstructions will be needed for Step 2. 2. Prepare a Cash Flow Statement for the year ended 30 June 2021 in a form consistent with AASB 107. 3. Prepare a Reconciliation of Net Profit with Net Cash Flows from Operating Activities. Complete both of these tasks within the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 on the Part C tab. Use Excel formulae to link cells and calculate totals and subtotals, where appropriate. 123 TMP C – Assessment Template – Portfolio of Evidence v1.3Page 1 of 7 123 TMP C – Assessment Template - Portfolio of Evidence v1.3Page 7 of 7 Part B Delizio's DelicatessenDelizio's Delicatessen Profit & Loss Statement201820192020Balance Sheet201820192020 Sales3,945,0004,561,2304,789,500Current Assets Less cost of goods sold2,643,0003,040,2503,192,500Accounts receivable45,30052,10071,000 Gross Profit1,302,0001,520,9801,597,000Inventory186,500214,000263,200 Less ExpensesCash8,0005,8001,200 Selling expenses792,6001,003,0001,101,920Total current assets239,800271,900335,400 Administration expenses37,00037,50038,000Non-Current Assets Financial expenses115,000113,000111,000Land and buildings175,000211,000211,000 Total expenses944,6001,153,5001,250,920Shop equipment123,000135,000190,000 Net Profit / (Loss)357,400367,480346,080Motor vehicles42,00044,00039,000 Total non-current assets340,000390,000440,000 Total Assets579,800661,900775,400 Current Liabilities Accounts payable204,300252,650331,300 Bank overdraft- 0- 056,020 Total current liabilities204,300252,650387,320 Non-Current Liabilities Mortgage84,00081,00079,000 Bank Loan17,00073,000120,000 Total non-current liabilities101,000154,000199,000 Total Liabilities305,300406,650586,320 Net Assets274,500255,250189,080 Equity Capital299,600274,770256,200 Add Net Profit357,400367,480346,080 Less Drawings- 382,500- 387,000- 413,200 Total Equity274,500255,250189,080 Ratio Calculation Worksheet RatiosCalculation Used20192020Comment Liquidity (express as a ratio) Current ratio Quick ratio Profitability (express as a percentage) Gross profit rate Net profit rate Activity Average inventoryNo comment required Inventory turnover rate Number of days inventory heldNo comment required Part C The following summary of transactions of Henry & Henry is provided for the year ended 30 June 2021 Credit sales of legal services252,000 Credit purchases191,000 Cash sales of legal services293,000 Cash purchases138,000 Discounts allowed3,000 Discounts received3,000 Accounts receivable balance 01/07/2050,400 Accounts receivable balance 30/06/2161,400 Accounts payable balance 01/07/2035,850 Accounts payable balance 30/06/2140,850 Bad debts written off2,000 Increase in allowance for Doubtful Debts2,000 Repayment of bank loan18,000 Drawings by Partners15,000 Purchase of new Fittings25,000 Alterations to buildings4,000 Depreciation of plant34,000 Cash expenses paid105,000 Net profit for the year73,000 Cash at bank 01/07/2075,000 Cash at bank 30/6/21116,000 Assessment Marking Criteria FNSACC414_AT1_MC_TQM_v1.4 FNSACC414_AT1_MC_TQM_v1.4 Student Name Student Number Unit Code/s & Name/s FNSACC414 Prepare financial statements for non-reporting entities Cluster Name If applicable NA Assessment Type ☐ Assignment ☐ Project ☐ Case Study ☒ Portfolio ☐ Third Party Report (Workplace) ☐ Third Party Report (Peer) ☐ Other Assessment Name Assessment 1 Assessment Task No. 1 of 2 Assessment Due Date Date Submitted / / Assessor Feedback: Attempt 1 Satisfactory ☐ Unsatisfactory ☐ Date / / Assessor Name Assessor Signature ☐ Student provided with feedback and reassessment arrangements (check box when completed) Date scheduled for reassessment / / Attempt 2 Satisfactory ☐ Unsatisfactory ☐ Date / / Assessor Name Assessor Signature Note to Assessor: Please record below any reasonable adjustment that has occurred during this assessment e.g. written assessment given orally. Assessment Criteria / Benchmarks The evidence submitted demonstrates that the student has satisfactorily: Attempt 1 Attempt 2 Date __/__/__ Date __/__/__ Y N Y N Part A 1. Recorded accounts in the correct account class ☐ ☐ ☐ ☐ 2. Listed, and explained advantages / disadvantages of 3 financial statements ☐ ☐ ☐ ☐ 3. Explained purpose of financial statements for a. Managers / Business owners b. Suppliers c. Investors d. Government Regulators ☐ ☐ ☐ ☐ 4. Named the governing body that issues Accounting Standards ☐ ☐ ☐ ☐ 5. Defined a reporting entity and non reporting entity; explained the reporting requirements of each ☐ ☐ ☐ ☐ 6. Identified 2 key pieces of legislation affecting taxable transactions and summarised the key features of each ☐ ☐ ☐ ☐ Part B 1. Identified the formula to be used for each calculation ☐ ☐ ☐ ☐ 2. Calculated the ratios for 2019 and 2020, to 2 decimal places. Workings should be included ☐ ☐ ☐ ☐ 3. Comment on / analyse each ratio ☐ ☐ ☐ ☐ 4. Identify the small business benchmark and compare to Delizio Delicatessen a. Gross profit ratio b. Net profit ratio ☐ ☐ ☐ ☐ 5. Explain the advantages and disadvantages of using ratios and comparison techniques ☐ ☐ ☐ ☐ Part C 1. Reconstruct Accounts Receivable and Accounts Payable General Ledger account. ☐ ☐ ☐ ☐ 2. Prepared a cash flow statement consistent with AASB107 ☐ ☐ ☐ ☐ 3. Prepared a reconciliation of Net Profit with Net Cash Flow from Operating Activities ☐ ☐ ☐ ☐ 4. Use appropriate functions in Microsoft Excel. For example: cell referencing and totalling. ☐ ☐ ☐ ☐ 123 TMP H – Assessment Marking Criteria v1.8 (04/11/2020)Page 1 of 3 123 TMP H – Assessment Marking Criteria v1.8 (04/11/2020)Page 3 of 3