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S t Peter
Inslitu [e
22218 | CRICOS No: 03167G
ASSESSMENT 1 - STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
Instructions for Students:
Whilst researching and writing your project it is important to:
Read the Assessment description carefully.
Assessment should be in a Word format.
Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
Acknowledge clearly when and how you are drawing on the ideas or phrases of others;
Consult your instructors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
Student can seek clarification regarding the assessment required to be done.
Students can ask for reasonable time from Assessor for preparation of project or Assessment. Students can seek information on additional reading material and reference for completion of the assessments.
Students with special needs can seek assistance from Assessors depending upon the nature of the need.
You have 1.5 hours to complete this assessment. Submit this document
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Assessment 1
Part A
For this assessment, you are required to write a report of about 800-1000 words briefly discussing the underlying concepts and knowledge required for the preparation of operational budgets and setting the timeframes for the budgets. It should include detailed explanation on the following summarized criteria: budget objectives and organisational aims cash, expenditure and revenue items to be included in budgets effect of discussions on stakeholders milestones and performance indicators budget and seasonal periods.
Practical examples of how the concepts and knowledge could be used in organizations should be included where possible. For students who have some relevant work experience, part-time or full-time, the examples may come from that experience. For students without work experience, some extra research may be required or they can speak to someone with some current industrial experience.
Part B
A & G Advertising is a small advertising agency that has just completed two successful years of operation. Accounting records have been kept since the start of the business and have been used to produce accounting reports at the end of each year. Budgeting has been used for the last year to control the finances of the agency and the owner wants to continue their use in the current year by having cash budgets prepared for the first three months of the year. The agency is registered with the ATO for both CST and PAYG.
Requirements:
Cash budgets by months for the quarter ending 30 September 2014 will need to be prepared and documented for the following:
1. Cash revenue budget
2. Cash expenditure budget
3. Cash flow budget
The assessments have to be presented according to the following instructions and submitted on a date to be determined by the trainer or assessor:
The budgets should be on separate sheets of paper.
Any notes or calculations for each of the budgets can be included on the same page or an additional page.
Preferably, they should be prepared using spreadsheet software such as Microsoft Excel or similar.
Pty Ltd T/A St
Bourke Street, info(aspi.vic.edu.au
Inslitu le
22218 | CRICOS No:
Extra data and information required for the budgets In all budgets:
The formats and presentation methods should be similar to the relevant budgets. Calculations should be to the nearest whole figure.
Cash revenue budget:
Income for the period is as follows:
July $40 000
, August $ 46 000
Septernber $ 48 000
numbers in the list above should be range right
Income is received as 80% cash with the balance on credit.
The credit income is received in the month following the provision of the advertising services to the client.
Income in the previous month of June was $38 000 with 20% of that on credit.
Cash expenditure budget:
The following expenses are expected in the quarter:
Depreciation $40000
O General $7500
Postage and stationery $ 21000
o Rent $ 4500
Telephone $6000
o Bank fees $600
Wages and salaries $60 000
numbers in the list above should be range right
These expenses will be paid evenly over the three months.
There are no drawings.
Wages and salaries are paid as a net amount to employees — PAYG withheld is assumed to be 20% of the gross amount.
PAYG tax is paid each quarter with the tax withheld in one quarter paid in the next quarter — there is tax of $11 500 from the June 2014 quarterto be paid in July.
Pty Ltd TIA St
Bourke Street, inforctspi.vie.edu.au
No:
ASSESSMENT 2 - STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements.
Instructions for Students:
Whilst researching and writing your project it is important to.
Read the Assessment description carefully.
0 Assessment should be in a Word format.
Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
0 Acknowledge clearly when and how you are drawing on the ideas or phrases of others;
Consult your instructors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
0 Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
Student can seek clarification regarding the assessment required to be done.
Students can ask for reasonable time from Assessor for preparation of project or Assessment. Students can seek information on additional reading material and reference for completion of the assessments.
Students with special needs can seek assistance from Assessors depending upon the nature of the need.
Submit this document
Pty Ltd TIA St
Bourke Street, info(ažspi.vic.edu.au
Assessment — 2
Part -A
Complete the following income budget by quarters for a legal practice for the year ended 30 June 2014, based on the following data:
a. The total income in the previous year was $800 000 but this is expected to increase by 10% in 2014 — calculate the total expected income for 2014 and show the workings.
b. The quarterly seasonal pattern is expected to be
i. September ii. December iii. March iv. June 25%.
c. Business clients usually provide 70% of the income; it is expected to be 60% cash with 40% on credit.
d. The balance of the income comes from personal clients who usually pay in cash.
e. The calculations for any data can be to the nearest whole dollar and GST can be ignored in this question.
a. The expected sales for 2014:

A legal practice
Income budget by quarters for the Year ended 30 June 2014
Income Sep. Dec. Mar. Jun. Total
Business ( Cash (
Business ( — Credit (
Personal ( — Cash (
Total $
Pty Ltd TIA St
Bourke Street, inliya:spi.vic.edu.au
I l
| CRICOS
Part -B
The BDA store is a sole trader involved in the retail industry. The organisation has been operating for a number of years and has become accustomed to the practice of having various budgets documented for their activities.
Required:
Complete the following purchases budget for this trading organisation for the March quarter, 2014, based on the following data:
a. Monthly sales are as shown in the budget.
b. If the mark-up margin is 100% on cost, calculate the decimal to be used to determine the cost price of the sales.
c. The purchases are all made on credit.
d. The opening stock for January is $40 000.
e. The closing stock for each month is equal to the cost price of the following month's sales.
f. The sales for April are expected to be $68 000.
g. The calculations for any data can be to the nearest whole dollar and GST can be ignored in this question.
Answer
The cost price for the sales:
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BDA store
Purchases budget for the March quarter 2014
Jan. Feb. Mar. Total
Sales 80 000 70 000 64 000 214 000
Sales at cost (
Purchases
Closing stock
Opening stock
Total purchases $
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Part-C
Income statement budgets are important for the management of a trading organisation.
Required:
Complete the following income statement budget for a trading organisation for the year ended 30 June 2014 by filling in the cells with the question marks (?).
a. The total sales in the annual sales budget for 2014 are $700 000.
b. The purchases are expected to be 60% of the sales.
c. Depreciation — Office equip. — the amount of depreciation for the year is based on a cost price of $10 000 and a depreciation rate of 15% using straight-line depreciation.
d. Rent — expected to be $4,000 per month.
e. Wages and salaries (administrative) — the amount paid in the previous year was $34 000 but this is expected to increase by 4% in 2014.
f. Motor vehicle expenses — these were $22 000 in the previous year but are also expected to increase by 4% in 2014.
g. Bank fees — these were $1200 in the previous year but are expected to increase by 8% in 2014.
h. The calculations for any data can be to the nearest whole dollar and GST can be ignored in this question.
Calculations must be shown below.

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Answer
A trading business
Income statement budget for the year ended 30 June 2014

Sales
Less Cost of goods sold
Stock at 1 July 45
Purchases
Less Stock at 30 June 40 000
Gross profit
Less Operating expenses
Administrative
Depreciation — Office equip.
General 9 000
Rent
Wa es and salaries — office
Marketing
Motor vehicle expenses
Wages and salaries — sales 90 000
Financial
Bank fees
Net profit
Part -D
Required:
Complete the following cash flow budget for a service organisation for the March quarter, 2014 by filling in the cells with the question marks (?). Candidates will have to decide where the names of some of the items will have to be recorded in the budget.
a. The income for the quarter is as shown in the budget.
b. GST has to be added at current rate used in Australia.
c. General expenditure — the total for the quarter is $24 000 spread evenly over the three months.
d. Rent is expected to be $2500 per month.
e. Wages and salaries — the total gross payment for the quarter is $18 000 spread evenly over the three months and has to be paid as a net amount after allowing PAYG tax of 20%.
f. Bank fees — the total for the quarter is $900 spread evenly over the three months.
g GST input credit has to be calculated on any applicable items of expenditure using the same rate as used for income above.
h. The GST remittance of $7600 for the previous quarter has to be paid in February.
The PAYG remittance of $4000 for the previous quarter has to paid in February as well.
j. The opening balance of the bank account is $20 000.
k. The calculations for any data can be to the nearest whole dollar.
The following space can be used for any calculations.
Angel United
Building, Level www.spi.vie.eclu.au
FNS ACC402 of25

Any calculations
Angel United
Building, Level
A service organisation Cash flow budget for the March quarter 2014
Jan. Feb. Mar. Total
Revenue:
Cash received 30 000 30 000 32 000 92 000
CST
Total revenue
Less Expenditure:
Motor vehicle 3 000 3 000 3 000 9 000

Advertising 1 400 1 400 1 400 4 200
Subtotal
GST in ut tax credit
GST remittance
PAYG remittance
Total expenditure
Cash increase/(decrease)
Opening balance bank
Closing balance bank
Angel United Peter Institute
Leviathan Building, Level Melbourne VIC
Web: www.spi.vie.edu.au
of25

part — E
Using the budgets prepared above in Part A to D, briefly explain how the following criteria were employed and demonstrated in not less than 500 words.

1. The different type or sources of data
2. The presentation methods and formats us
Angel United
Leviathan Building, Level
Web: www.spi.vic.edu.au
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