SITXFIN003-Manage finances within a budget Case Study – Accounting & Finance Assignment Help

Assessment Overview 
This Student Assessment Booklet includes all your tasks for assessment of the topic Finance which includes the two units:

• Manage finances within a budget
• Prepare and monitor budgets.

About Your Assessments
This unit requires that you complete four assessment tasks. You must complete all tasks to achieve competency for the units in this topic.

Assessment Task    About This Task

Assessment Task 1: Written Questions    
You must correctly answer all questions in this task to show that you understand the knowledge required of this topic.

Assessment Task 2: Case Study    
For this task you are required to answer the questions to demonstrate your knowledge of reviewing and monitoring financial activity against a budget and recommending solutions to deviations.

Assessment Task 3: Financial and Statistical Calculations    
You must correctly answer all questions in this task to show that you understand how to calculate financial and statistical information required of this topic.

Assessment Task 4: Project    
For this task you are required to prepare and manage a budget over three months and prepare financial reports.

Assessment Task Cover Sheet
At the beginning of each task in this booklet, you will find an Assessment Task Cover Sheet. Please fill it in for each task, making sure you sign the student declaration. 
Your assessor will give you feedback about how well you went in each task, and will write this on the back of the Task Cover Sheet.

Assessment Task 1: Written Questions

TASK SUMMARY
You are to answer all written questions.

RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK

• Access to textbooks and other learning materials.
• Access to a computer, printer, Internet and applicable software (eg Microsoft Office).

WHEN AND WHERE DO I NEED TO COMPLETE THIS TASK?

• This task may be done in your own time as homework or you may be given time to do this task in class (where applicable). 
•  Your assessor will provide you with the due date for this assessment.

WHAT DO I NEED TO SUBMIT?

• Your answers to each question in this task.

INSTRUCTIONS

• You must answer all questions in this task correctly. 
• You must answer the questions by typing your answers in Microsoft Word or a similar program. Ensure the answers are numbered to correspond with the question numbers. Your assessor will advise how to submit this assessment task.
   

Written Questions:

QUESTION 1 – Provide an outline of what a master budget is and what it contains.

QUESTION 2 – Identify the four basic financial reports and outline their purpose and content.

QUESTION 3 – Provide a brief summary of the purpose of each of the following budgets:

• Cash/Cash flow budget
• Departmental budget
• Event budget
• Project budget
• Purchasing budget
• Sales budget
• Wage budget.

QUESTION 4
Identify the purpose of the following financial records:

• Bank deposit documentation
• Bank statements 
• Banking summaries
• Business Activity Statements
• Cheque books
• Credit card transaction statements
• Journal entries
• Labour and wages reports
• Merchant statements
• Merchant summaries
• Transaction reports.

QUESTION 5- What are the requirements for a tax invoice in Australia?

QUESTION 6 – Research three common accounting software applications that small businesses use and summarise their functions and features.

QUESTION 7 – Describe three techniques commonly used for making estimates of expense budgets.

QUESTION 8 – Identify and outline the steps in the accounting cycle.

QUESTION 9 – Give three examples of negative changes in the internal organisational environment which may have to be taken into account when reviewing budgets with a view to making necessary changes.

QUESTION 10 – Budget formats can vary between organisations and accounting programs: list two ways a negative situation can be indicated in figures on a budget.

QUESTION 11 – Discuss the role of a budget and financial reports for a business.

QUESTION 12 – Discuss how changes in legislation can impact on a budget. Give three examples of legislation changes in the last decade that have had an impact on the hospitality industry and the profitability margins.

QUESTION 13 – Discuss how a hospitality business might manage and recover their profit margin in a downturn in the economy.

QUESTION 14 – Identify five internal sources of information that may be used as a basis for preparing a budget and forecasting income and expenditure.

QUESTION 15 – Identify five external sources of information that may be used as a basis for preparing a budget and forecasting income and expenditure.

QUESTION 16 – Identify and briefly summarise the four stages of a budget cycle. 

QUESTION 17 – a) Define the following options and approaches to budgeting:

• Incremental budgeting
• Zero-based budgeting.

b) Why are ‘rolling budgets’ useful in the hospitality industry?

QUESTION 18 – Complete the following table to differentiate between the ‘top down’ and the ‘bottom up’ approach to negotiating budgets.

QUESTION 19 – Aside from income and expenditure, list seven different types of financial factors/results that may be forecasted in a hospitality budget and actuals reported.

QUESTION 20 – Food wastage is an unknown cost in Australia. One thing for sure that we know is that the cost is escalating quickly. Explain what a restaurant might calculate or consider in relation to waste when preparing financial and statistical reports. Give three examples.

QUESTION 21 – Explain what yield management is in relation to a hotel. Why is yield management important?

QUESTION 22 – Forecasted room revenue calculations are based on the number of rooms available, the number of operating days, the average room rate and the forecasted occupancy. Calculate the room revenue (to the nearest dollar) using the data in the table below.

QUESTION 23 – Working out how much to charge for food and drink.
a) Calculate the cost of a drink of vodka and soda (before taxes): 

• You will need the following to make one drink – 0.03L of vodka, 0.1L of soda, 0.02 kg of lime and one straw.
• A litre of vodka costs $12.00, a litre of soda water costs $1.00, a pack of 140 straws costs $3.00 and 1kg of limes is $2.00. If 0.03L of vodka costs $0.36 work out the cost of the soda water, slice of lime and one straw.

What is the cost of the drink (ingredients only)?

•  If you wanted to make 500% on the drink how much would it be?

b) What other costs may you have to calculate into the cost of this drink? List three suggestions.
c) If half of the bag of limes were thrown out after being cut and not used, what is the cost of the waste?

QUESTION 24 – What are the three different ways that a statistical/financial report can show variances?

Assessment Task 2: Case Study

TASK SUMMARY
For this task you are required to answer the questions to demonstrate your knowledge of:

• Reviewing and monitoring financial activity against a budget and recommending solutions to deviations.

RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK

•  Access to textbooks and other learning materials.
•  Access to a computer, printer, spreadsheet and word processing software.

WHEN AND WHERE SHOULD THE TASK BE COMPLETED?

• This task may be done in your own time as homework or you may be given time to do this task in class (where applicable). 
• Your assessor will provide you with the due date for this assessment.

WHAT NEEDS TO BE SUBMITTED?

• Your answers to all questions.

INSTRUCTIONS
Read the case study below and answer all questions correctly.

Budget review
You are an Operations Manager with Marino Enterprises and oversee the operations for six of the venues. John Marino has asked you to monitor and review specific budget figures for two businesses as presented below and present an analysis of their meaning for the organisation.
The management team are keen to identify issues that need to be addressed based on an analysis and review of the budget data in order to optimise the viability of the business while retaining market share, market position and their high product and service standards.

QUESTION 1 – Use a spreadsheet program to calculate and facilitate the development of final figures for Property 1 as follows:

• Calculate the dollar deviations for room sales, food sales, liquor sales, wages, rent and overheads.
• Calculate the percentage deviations for room sales, food sales, liquor sales, wages, rent and overheads.
• Indicate if the identified deviations are positive or negative.

QUESTION 2 – Use a spreadsheet program to calculate and facilitate the development of final figures for Property 2 as follows:

• Total the budgeted and actual sales for the 6 months.
• Calculate the dollar deviations for sales on a month-by-month basis.
• Calculate the percentage deviations for sales on a month-by-month basis.
• Calculate year-to-date budgeted totals for sales on a month-by-month basis.
• Calculate year-to-date actual totals for sales on a month-by-month basis.
• Calculate the dollar deviations for YTD figures on a month-by-month basis.
• Calculate the percentage deviations for YTD figures on a month-by-month basis.

QUESTION 3 – For Property 1 suggest four possible causes for the variation in room sales.

QUESTION 4 – For Property 1 suggest four possible ways to manage the variation in room sales.

QUESTION 5 – Identify four possible causes of the results for food sales in Property 1.

QUESTION 6 – There is no need for you to investigate the ‘wages’ deviance: why might this be so?

QUESTION 7 – In late June Property 1 undertook a major advertising campaign that had been factored into budgets for July: given the actual results for July, what action might you suggest to management.

QUESTION 8 – Why would you want to conduct a major investigation into sales for September?

QUESTION 9 – The organisation has found out that other businesses in the chain had shown a 6% positive variation in actual sales against budgeted revenue figures: list three suggestions on what might you do about this?

QUESTION 10 – How might you research internal factors impacting the figures you have been given? Give three suggestions.

QUESTION 11 – What could you do to research external factors impacting the figures you have been given? Give five suggestions.

QUESTION 12 – List five internal source documents that you would need to refer to in order to determine profit performance for the food and beverage areas. 

QUESTION 13 – Which colleagues and managers might you need to share these findings with? Give five suggestions.

QUESTION 14 – You briefly consider reducing staff numbers as a way of improving profit but reject the idea: what reasons might be behind this thinking?

Assessment Task 3: Financial and Statistical Calculations

TASK SUMMARY
You are to answer all written questions.

RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK

• Access to textbooks and other learning materials.
• Access to a computer, printer, Internet and word processing software (eg Microsoft Word).
• Calculator or spreadsheet application.

WHEN AND WHERE DO I NEED TO COMPLETE THIS TASK?

• This task may be done in your own time as homework or you may be given time to do this task in class (where applicable). 
• Your assessor will provide you with the due date for this assessment.

WHAT DO I NEED TO SUBMIT?

• Your answers to each question in this task.

INSTRUCTIONS

• This is an open book test – you can use your learning materials as reference.
• You must answer all questions in this task correctly. 
• You must answer the questions by typing your answers in Microsoft Word or a similar program. Ensure the answers are numbered to correspond with the question numbers. Your assessor will advise how to submit this assessment task.

QUESTION 1 – Calculate Cost of Goods sold for a bar given the following information:

• Opening stock for the bar: $30,000
• Closing stock for the bar: $25,000
• Requisitions to the bar: $125,000

QUESTION 2 – What is the Percentage Cost Factor for the following?

• Cost of Goods Sold: $17,800
• Revenue: $41,786.

QUESTION 3 – What is the Gross Profit for the following?

• Cost of Goods Sold: $55,962
• Revenue: $134,000

QUESTION 4 – Calculate Percentage Mark-Up for the following:

• Revenue: $15,000
• Cost of Goods Sold: $6,934

QUESTION 5 – What is the Return on Proprietor’s Funds given the following?

•  Owner’s funds: $1,200,000
•  Nett profit: $365,500

QUESTION 6 – Calculate Current Asset Turnover Ratio (expressed as a percentage) from the following:

• Average current assets: $2,000,000
• Sales: $350,680

QUESTION 7 – What is the Gearing Ratio based on the figures below (expressed as a percentage)?

• Average liabilities: $450,999
• Average equities: $2,150,000

QUESTION 8 – Calculate the Working Capital Ratio for the following:

• Current assets: $805,000
• Current liabilities: $1,450,000

QUESTION 9 – What is the Quick Asset Ratio (expressed as a formula) for the following figures?

• Current assets: $2,000,000
• Stock: $55,000
• Current liabilities: $1,300,000
• Bank overdraft: $45,000

QUESTION 10 – What is the Proprietary Ratio (expressed as a percentage) given the following?

• Total proprietorship: $375,000
• Total assets: $1,500,000

QUESTION 11 – Calculate the gross profit margin percentage for the figures below:

• Sales: $ 2,457,983
• Gross profit: $890,816

QUESTION 12 – Calculate room occupancy percentage from the following:

• Total rooms available: 1205
• Rooms occupied: 378

QUESTION 13 – What is the average room rate for the following?

•  Room revenue: $66,450
•  Total rooms available: 524

QUESTION 14 – The following ratios are used to judge the financial stability of a business: identify if the following are used to determine the short- or long-term financial stability of a business.

QUESTION 15 – If your working capital ratio went from 2 to 1, would that generally be seen as a positive or negative movement?

QUESTION 16 – Your gearing ratio has moved from 0.5 to 1.0: is that generally regarded as a Positive or Negative movement?

QUESTION 17 – Your analysis of labour costs indicates negative deviations: what might you suggest to improve this situation?

Assessment Task 4: Project

TASK SUMMARY
For this task you are required to prepare and manage a budget over three months and prepare financial reports.

RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK

•  Access to textbooks and other learning materials.
•  Access to an accounting software package (your assessor will provide information for access to free software).

WHEN AND WHERE SHOULD THE TASK BE COMPLETED?

• This task may be done in your own time as homework or you may be given time to do this task in class (where applicable). 
• Your assessor will provide you with the due date for this assessment.

WHAT NEEDS TO BE SUBMITTED?

• Part A – Email and draft budget for B&B managers’ discussion.
• Part A – Memo and draft budget for discussion and approval from Betsy.
• Part B – Memo and final budget.
• Part C – Memo.
• Part D – Email communication with supplier.
• Part D – Memo to Betsy.
• Part E – Cash flow report and memo.
• Part F – Memo.