BSBFIM801 Manage Financial Resources-2

Pages: 4 Words: 890

Question :

Assignment No. 2 – CASE STUDY

1. A short financial plan for the club for the financial years 2018/18, 2019/20 and 2020/21.
2. A budget (cash-flow forecast) for the financial year 2018/19
3. A projected Profit & Loss Statement for the financial year period 2018/19, including what variations for each line item you and your Committee would find acceptable
4. Projected Balance Sheet as at 30th June 2019.
5. Assumptions List (see scenario above)
6. A description of any financial risks facing the club over the next 3 financial years.

Assignment No. 2- Case Study3

Assignment No. 2- Case Study

1.      A short financial plan for the club for the financial years 2018/18, 2019/20 and 2020/21.

 Income \$ \$ Sales \$5,846,465.00 Services \$5,646,546.00 Other Income \$6,464,664.00 \$17,957,675.00 Total   Income Expenses \$ \$ Accounting \$2,515,465.00 Advertisement \$6,546,465.00 Bank Charges \$6,546,545.00 Cost of goods sold \$1,212,233.00 \$16,820,708.00 Total   Expenses Net   Profit/Loss \$1,136,967.00

2.      A budget (cash-flow forecast) for the financial year 2018/19

 Financial Table 6  -CASH FLOW FORECAST Business Plan: 5.5 Business Name: 0 0 0 0 0 0 0 1 1 1 1 1 1 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Totals CASH INFLOW Cash sales excluding GST 1,348,000 1,468,500 1,318,000 1,314,500 1,298,250 1,272,900 1,240,750 1,403,500 1,645,850 1,744,000 1,866,300 1,619,800 17,540,350 Credit sales payments excluding GST 120,699 126,136 130,180 128,571 126,061 122,877 138,995 162,995 172,716 184,828 160,416 1,574,473 Bank loans 4,331,353 4,646,514 4,161,132 5,354,552 4,132,321 3,545,646 4,165,165 1,351,534 3,155,821 3,545,841 3,456,415 5,663,512 47,509,806 Sale of assets 6,656,565 2,123,555 4,684,645 2,232,124 1,651,658 5,456,452 3,213,165 3,213,545 5,456,562 2,311,446 6,458,848 4,848,846 48,307,411 Other income (specify) excluding GST 6,686,546 6,564,864 546,546 3,121,231 2,131,358 3,468,545 465,468 4,454,656 4,353,021 3,213,846 4,564,652 4,646,862 44,217,595 A. RECEIPTS 19,022,464 14,924,132 10,836,459 12,152,587 9,342,158 13,869,604 9,207,425 10,562,230 14,774,249 10,987,849 16,531,043 16,939,436 159,149,635 CASH OUTFLOW Cost of sales 1,343,000 1,447,000 1,445,500 1,518,000 1,673,500 1,574,500 1,513,650 1,640,800 1,873,500 1,958,000 2,110,100 1,779,900 19,877,450 Accounting fees 120,000 123,200 126,400 129,600 132,800 136,000 139,200 142,400 145,600 148,800 152,000 155,200 1,651,200 Purchases - plant and equipment 450,000 465,000 480,000 495,000 510,000 525,000 540,000 555,000 570,000 585,000 600,000 615,000 6,390,000 Purchases - sundry materials not   in cost of goods sold 400,000 350,000 300,000 350,000 400,000 500,000 453,333 473,333 493,333 513,333 533,333 553,333 5,320,000 Advertising 265,464 223,456 452,115 216,854 462,315 458,621 491,181 532,527 573,872 615,218 656,564 697,910 5,646,097 Cartage 126,545 321,315 321,355 115,133 123,213 121,546 265,656 564,565 656,465 564,546 565,456 454,846 4,200,641 Electricity / gas 321,354 111,122 154,623 232,646 121,321 415,432 125,325 123,354 415,464 453,215 453,525 453,215 3,380,596 Insurances 426,512 213,546 322,154 452,216 546,581 535,844 583,725 631,606 679,487 727,367 775,248 823,129 6,717,415 Leasing of equipment 548,654 654,245 759,836 865,427 971,018 1,076,609 1,182,200 1,287,791 1,393,382 1,498,973 1,604,564 1,710,155 13,552,854 Legal expenses 878,645 846,464 814,283 782,102 749,921 717,740 685,559 653,378 621,197 589,016 556,835 524,654 8,419,794 Motor vehicle expenses 232,315 452,434 672,553 892,672 1,112,791 1,332,910 1,553,029 1,773,148 1,993,267 2,213,386 2,433,505 2,653,624 17,315,634 Printing and postage 454,662 554,624 654,586 754,548 854,510 954,472 1,054,434 1,154,396 1,254,358 1,354,320 1,454,282 1,554,244 12,053,436 Rent / lease of property 213,156 233,315 253,474 273,633 293,792 313,951 334,110 354,269 374,428 394,587 414,746 434,905 3,888,366 Repairs and maintenance 241,158 255,465 269,772 284,079 298,386 312,693 327,000 341,307 355,614 369,921 384,228 398,535 3,838,158 Stationery and office supplies 484,652 498,642 512,632 526,622 540,612 554,602 568,592 582,582 596,572 610,562 624,552 638,542 6,739,164 Telephone 456,665 494,132 531,599 569,066 606,533 644,000 681,467 718,934 756,401 793,868 831,335 868,802 7,952,802 Others (specify) 545,466 652,424 759,382 866,340 973,298 1,080,256 1,187,214 1,294,172 1,401,130 1,508,088 1,615,046 1,722,004 13,604,820 465,465 485,624 505,783 525,942 546,101 566,260 586,419 606,578 626,737 646,896 667,055 687,214 6,916,074 488,652 542,123 595,594 649,065 702,536 756,007 809,478 862,949 916,420 969,891 1,023,362 1,076,833 9,392,910 884,646 786,545 688,444 590,343 492,242 394,141 296,040 197,939 99,838 1,737 -96,364 -194,465 4,141,086 Bank interest and charges (no GST) 468,464 485,622 502,780 519,938 537,096 554,254 571,412 588,570 605,728 622,886 640,044 657,202 6,753,996 Commissions (no GST) 465,588 546,526 627,464 708,402 789,340 870,278 951,216 1,032,154 1,113,092 1,194,030 1,274,968 1,355,906 10,928,964 Employee wages (no GST) 565,616 484,546 403,476 322,406 241,336 160,266 79,196 -1,874 -82,944 -164,014 -245,084 -326,154 1,436,772 Hire purchase payments (no GST) 234,584 321,348 408,112 494,876 581,640 668,404 755,168 841,932 928,696 1,015,460 1,102,224 1,188,988 8,541,432 Loan repayments (no GST) 845,465 846,542 847,619 848,696 849,773 850,850 851,927 853,004 854,081 855,158 856,235 857,312 10,216,662 Owner's drawings and / or   dividends (no GST) 2,410,093 2,289,587 2,173,049 2,053,832 1,935,261 1,816,672 1,698,065 1,579,551 1,460,990 1,342,430 1,223,869 1,105,308 21,088,707 B. BUSINESS EXPENSES 14,336,821 14,684,847 15,582,585 16,037,438 17,045,916 17,891,308 18,284,597 19,384,365 20,676,709 21,382,674 22,211,628 22,446,142 219,965,029 C. GST RECEIVED 803,455 815,406 199,068 456,591 355,818 486,751 182,909 599,715 616,187 513,056 661,578 642,708 6,333,242 Input Tax Credits (GST Paid) 849,728 882,789 965,462 1,008,117 1,101,043 1,179,144 1,216,147 1,317,366 1,436,097 1,501,520 1,578,125 1,600,689 14,636,227 D. NET GST PAYABLE -880,050 -1,989,144 -2,570,798 Tax Instalment Rate -880050 -1989144 -2570798 E. TAX PAYABLE -15,998,684,926,472 -25,842,155,960,397 -35,960,609,737,872 F. NET CASH FLOW [(A+C)-(B+D+E)] 5,489,098 1,054,690 -4,547,057 15,998,682,378,263 -7,347,940 -3,534,954 25,842,149,055,279 -8,222,420 -5,286,273 35,960,602,426,901 -5,019,008 -4,863,999 G. OPENING BALANCE (cash at start   of month) 5,489,098 6,543,789 1,996,731 15,998,684,374,994 15,998,677,027,055 15,998,673,492,101 41,840,822,547,380 41,840,814,324,960 41,840,809,038,687 77,801,411,465,588 77,801,406,446,580 H. CLOSING BALANCE (cash at end of   month (G+F)) 5,489,098 6,543,789 1,996,731 15,998,684,374,994 15,998,677,027,055 15,998,673,492,101 41,840,822,547,380 41,840,814,324,960 41,840,809,038,687 77,801,411,465,588 77,801,406,446,580 77,801,401,582,582

3.      A projected Profit & Loss Statement for the financial year period 2018/19, including what variations for each line item you and your Committee would find acceptable

4.      Projected Balance Sheet as at 30th June 2019.

 Financial Table 8  -BALANCE SHEET Business Plan: 5.7.1 Business Name: 0 Date: CURRENT ASSETS CURRENT LIABILITIES Cash \$            95,000.00 Creditors \$            3,211,543.00 Debtors \$2,354,556.00 Bank overdraft \$231,154.00 Stock on hand \$1,583,288.00 Short-term loans \$1,356,465.00 TOTAL CURRENT \$            4,032,844.00 TOTAL CURRENT \$            4,799,162.00 ASSETS LIABILITIES FIXED ASSETS NON-CURRENT LIABILITIES Land \$            977,488.00 Long-term loans \$            2,135,454.00 Buildings \$1,243,183.00 Mortgage \$1,836,452.00 Plant and equipment \$            270,046.00 Vehicle(s) \$782,441.00 Other \$            1,043,034.00 TOTAL FIXED ASSETS \$            4,316,192.00 TOTAL NON-CURRENT \$            3,971,906.00 LIABILITIES INTANGIBLE ASSETS Goodwill \$            450,000.00 Patents, copyright, etc. \$            250,000.00 TOTAL INTANGIBLE \$            700,000.00 ASSETS TOTAL ASSETS \$            9,049,036.00 TOTAL LIABILITIES \$            8,771,068.00 NET ASSETS (TOTAL ASSETS - TOTAL   LIABILITIES) \$277,968.00 REPRESENTED BY: OWNER'S EQUITY Opening equity \$            4,232,152.00 Retained profit \$41,234,533.00 TOTAL EQUITY \$                45,466,685.00

5.      Assumptions List (see scenario above)

1. It has been assumed that growth rate of sales remains constant over the year.
2. The accounting has been made on accrual basis.
3. While preparing the cash budget it has been assumed that credit closing cash balance needs to be adjusted by taking short-term loans.

6.      A description of any financial risks facing the club over the next 3 financial years

The company has been facing loss as per the calculations that have been done under this consideration the company is finding it difficult to take any decisions for the coming years.

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