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BSBFIM801 Manage Financial Resources-2

Assignment No. 2 – CASE STUDY

Tasks to Be Completed: 

  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.

Answer

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               

   000000111111 
    JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTotals
CASH INFLOW                
Cash sales excluding GST1,348,0001,468,5001,318,0001,314,5001,298,2501,272,9001,240,7501,403,5001,645,8501,744,0001,866,3001,619,80017,540,350
Credit sales payments excluding GST 120,699126,136130,180128,571126,061122,877138,995162,995172,716184,828160,4161,574,473
Bank loans   4,331,3534,646,5144,161,1325,354,5524,132,3213,545,6464,165,1651,351,5343,155,8213,545,8413,456,4155,663,51247,509,806
Sale of assets   6,656,5652,123,5554,684,6452,232,1241,651,6585,456,4523,213,1653,213,5455,456,5622,311,4466,458,8484,848,84648,307,411
Other income (specify) excluding GST6,686,5466,564,864546,5463,121,2312,131,3583,468,545465,4684,454,6564,353,0213,213,8464,564,6524,646,86244,217,595
A. RECEIPTS   19,022,46414,924,13210,836,45912,152,5879,342,15813,869,6049,207,42510,562,23014,774,24910,987,84916,531,04316,939,436159,149,635

                
CASH OUTFLOW                 
Cost of sales    1,343,0001,447,0001,445,5001,518,0001,673,5001,574,5001,513,6501,640,8001,873,5001,958,0002,110,1001,779,90019,877,450
Accounting fees

 120,000123,200126,400129,600132,800136,000139,200142,400145,600148,800152,000155,2001,651,200
Purchases - plant and equipment
 450,000465,000480,000495,000510,000525,000540,000555,000570,000585,000600,000615,0006,390,000
Purchases - sundry materials not   in cost of goods sold

 400,000350,000300,000350,000400,000500,000453,333473,333493,333513,333533,333553,3335,320,000
Advertising   265,464223,456452,115216,854462,315458,621491,181532,527573,872615,218656,564697,9105,646,097
Cartage   126,545321,315321,355115,133123,213121,546265,656564,565656,465564,546565,456454,8464,200,641
Electricity / gas   321,354111,122154,623232,646121,321415,432125,325123,354415,464453,215453,525453,2153,380,596
Insurances   426,512213,546322,154452,216546,581535,844583,725631,606679,487727,367775,248823,1296,717,415
Leasing of equipment   548,654654,245759,836865,427971,0181,076,6091,182,2001,287,7911,393,3821,498,9731,604,5641,710,15513,552,854
Legal expenses   878,645846,464814,283782,102749,921717,740685,559653,378621,197589,016556,835524,6548,419,794
Motor vehicle expenses   232,315452,434672,553892,6721,112,7911,332,9101,553,0291,773,1481,993,2672,213,3862,433,5052,653,62417,315,634
Printing and postage   454,662554,624654,586754,548854,510954,4721,054,4341,154,3961,254,3581,354,3201,454,2821,554,24412,053,436
Rent / lease of property   213,156233,315253,474273,633293,792313,951334,110354,269374,428394,587414,746434,9053,888,366
Repairs and maintenance   241,158255,465269,772284,079298,386312,693327,000341,307355,614369,921384,228398,5353,838,158
Stationery and office supplies  484,652498,642512,632526,622540,612554,602568,592582,582596,572610,562624,552638,5426,739,164
Telephone   456,665494,132531,599569,066606,533644,000681,467718,934756,401793,868831,335868,8027,952,802
Others (specify)   545,466652,424759,382866,340973,2981,080,2561,187,2141,294,1721,401,1301,508,0881,615,0461,722,00413,604,820
    465,465485,624505,783525,942546,101566,260586,419606,578626,737646,896667,055687,2146,916,074
    488,652542,123595,594649,065702,536756,007809,478862,949916,420969,8911,023,3621,076,8339,392,910

   884,646786,545688,444590,343492,242394,141296,040197,93999,8381,737-96,364-194,4654,141,086
Bank interest and charges
(no GST)
468,464485,622502,780519,938537,096554,254571,412588,570605,728622,886640,044657,2026,753,996
Commissions (no GST)
465,588546,526627,464708,402789,340870,278951,2161,032,1541,113,0921,194,0301,274,9681,355,90610,928,964
Employee wages
(no GST)
565,616484,546403,476322,406241,336160,26679,196-1,874-82,944-164,014-245,084-326,1541,436,772
Hire purchase payments (no GST)
234,584321,348408,112494,876581,640668,404755,168841,932928,6961,015,4601,102,2241,188,9888,541,432
Loan repayments (no GST)
845,465846,542847,619848,696849,773850,850851,927853,004854,081855,158856,235857,31210,216,662
Owner's drawings and / or   dividends(no GST)
2,410,0932,289,5872,173,0492,053,8321,935,2611,816,6721,698,0651,579,5511,460,9901,342,4301,223,8691,105,30821,088,707
B. BUSINESS EXPENSES  14,336,82114,684,84715,582,58516,037,43817,045,91617,891,30818,284,59719,384,36520,676,70921,382,67422,211,62822,446,142219,965,029
                 
C. GST RECEIVED   803,455815,406199,068456,591355,818486,751182,909599,715616,187513,056661,578642,7086,333,242
Input Tax Credits (GST Paid)  849,728882,789965,4621,008,1171,101,0431,179,1441,216,1471,317,3661,436,0971,501,5201,578,1251,600,68914,636,227
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)] 5,489,0981,054,690-4,547,05715,998,682,378,263-7,347,940-3,534,95425,842,149,055,279-8,222,420-5,286,27335,960,602,426,901-5,019,008-4,863,999 
                 
G. OPENING BALANCE (cash at start   of month)    5,489,0986,543,7891,996,73115,998,684,374,99415,998,677,027,05515,998,673,492,10141,840,822,547,38041,840,814,324,96041,840,809,038,68777,801,411,465,58877,801,406,446,580 
                 
H. CLOSING BALANCE (cash at end of   month (G+F))   5,489,0986,543,7891,996,73115,998,684,374,99415,998,677,027,05515,998,673,492,10141,840,822,547,38041,840,814,324,96041,840,809,038,68777,801,411,465,58877,801,406,446,58077,801,401,582,582 


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


Financial Table 7  -PROFIT AND LOSS PROJECTION  

      






Business Plan: 5.6.1       





 






Business Name:0
     
DEPRECIATION SCHEDULE - Small   Business Tax Concessions
 
DEPRECIATION SCHEDULE - No   Concessions



       





 






Income       FIXED ASSETADJUSTABLE DEP.VALUE OF% BUSINESSBUSINESS  FIXED ASSETADJUSTABLEEFFECTIVE DEP.VALUE OF% BUSINESSBUSINESS
Total sales   $                19,114,823     VALUERATE *DEP.USEDEP.  VALUELIFE (Yrs) *RATE * *DEP.USEDEP.
Other income from Cash Flow   $                          44,217,595    A. From Establishment A.From Establishment
A. TOTAL BUSINESS INCOME     $                          63,332,418  Land charge $977,488.005% $48,874.4010% $4,887.44 Land charge $977,488.004010% $10,712.2015% $1,606.83
        machinery $782,441.005% $39,122.0510% $3,912.21 machinery $782,441.001010% $8,574.7015% $1,286.20
B. COST OF SALES      $                          18,070,409  labor $6,863,051.005% $343,152.5510% $34,315.26 labor $6,863,051.001010% $75,211.5215% $11,281.73
        Furniture & Fittings $270,046.005% $13,502.3010% $1,350.23 Furniture & Fittings $270,046.001510% $2,959.4115% $            443.91
  C. GROSS PROFIT (A - B)  $                          45,262,009  Selling price to retailers $1,213,449.005% $60,672.4510% $6,067.25 Selling price to retailers $1,213,449.00310% $13,298.0715% $1,994.71
        Corporate allocation $776,262.005% $38,813.1010% $3,881.31 Corporate allocation $776,262.00210% $8,506.9815% $1,276.05
Expenditure       manufacturer's suggested retail   price $759,810.005% $37,990.5010% $3,799.05 manufacturer's suggested retail   price $759,810.00210% $8,326.6815% $1,249.00
Accounting fees   $                            1,651,200    Buildings $1,243,183.005% $62,159.1510% $6,215.92 Buildings $1,243,183.004010% $13,623.9215% $2,043.59
Advertising   $                            5,646,097 
  Storage $6,033,754.005% $301,687.7010% $30,168.77 Storage $6,033,754.00110% $66,123.3315% $9,918.50
Bank interest and charges   $                            6,753,996 
  Overhead $107,780.005% $5,389.0010% $            538.90 Overhead $107,780.00110% $1,181.1515% $            177.17
Cartage   $                            4,200,641 
  machinery depreciation $119,014.005% $5,950.7010% $            595.07 machinery depreciation $119,014.00510% $1,304.2615% $            195.64
Commissions   $                   10,928,964 
  Real estate $568,643.005% $28,432.1510% $2,843.22 Real estate $568,643.004010% $6,231.7015% $            934.76
Depreciation   $                               749,961    others real estate $789,197.005% $39,459.8510% $3,945.99 others real estate $789,197.001510% $8,648.7315% $1,297.31
Electricity / gas   $                            3,380,596    others  $1,043,034.005% $52,151.7010% $5,215.17 others  $1,043,034.001010% $11,430.5115% $1,714.58
Employees wages   $                            1,436,772    B. Ongoing Purchases B.Ongoing Purchases
Hire purchase payments   $                            8,541,432    Accounting  $1,651,200.005% $82,560.0010% $8,256.00 Accounting  $1,651,200.00 10% $165,120.0015% $24,768.00
Insurances    $                            6,717,415 
  Advertisement $5,646,097.005% $282,304.8510% $28,230.49 Advertisement $5,646,097.00 10% $564,609.7015% $84,691.46
Leasing of equipment   $                          13,552,854    Bank and Charge $6,753,996.005% $337,699.8010% $33,769.98 Bank and Charge $6,753,996.00 10% $675,399.6015% $101,309.94
Legal expenses   $                            8,419,794    Estimated taxes $4,200,641.005% $210,032.0510% $21,003.21 Estimated taxes $4,200,641.00 10% $420,064.1015% $63,009.62
Motor vehicle expenses   $                          17,315,634    Equipment service $10,928,964.005% $546,448.2010% $54,644.82 Equipment service $10,928,964.00 10% $1,092,896.4015% $163,934.46
Purchases - sundry materials (not   in cost of goods sold) $                            5,320,000    inventory purchase $107,736.005% $5,386.8010% $            538.68 inventory purchase $107,736.00 10% $10,773.6015% $1,616.04
Printing and postage   $                          12,053,436    legal expenses $3,380,596.005% $169,029.8010% $16,902.98 legal expenses $3,380,596.00 10% $338,059.6015% $50,708.94
Rent / lease of property   $                            3,888,366    Office supplies $1,436,772.005% $71,838.6010% $7,183.86 Office supplies $1,436,772.00 10% $143,677.2015% $21,551.58
Repairs and maintenance   $                            3,838,158 


Payroll $8,541,432.005% $427,071.6010% $42,707.16 Payroll $8,541,432.00 10% $854,143.2015% $128,121.48
Stationery and office supplies   $                            6,739,164    printing $6,717,415.005% $335,870.7510% $33,587.08 printing $6,717,415.00 10% $671,741.5015% $100,761.23
Telephone   $                            7,952,802    rent $13,552,854.005% $677,642.7010% $67,764.27 rent $13,552,854.00 10% $1,355,285.4015% $203,292.81
Others (specify)   $                          13,604,820    vehicle expenses $8,419,794.005% $420,989.7010% $42,098.97
vehicle expenses $8,419,794.00 10% $841,979.4015% $126,296.91
Interest   $                            6,916,074    Salaries $17,315,634.005% $865,781.7010% $86,578.17
Salaries $17,315,634.00 10% $1,731,563.4015% $259,734.51
Utilities   $                            9,392,910    Leasing $5,320,000.005% $266,000.0010% $26,600.00 Leasing $5,320,000.00 10% $532,000.0015% $79,800.00
Variable overhead costs   $                            4,141,086    Maintenance $12,053,436.005% $602,671.8010% $60,267.18 Maintenance $12,053,436.00 10% $1,205,343.6015% $180,801.54
        Utilities $3,888,366.005% $194,418.3010% $19,441.83 Utilities $3,888,366.00 10% $388,836.6015% $58,325.49
(Input Tax Credits excluding Cost   of Sales)  $                          12,829,186    Insurance $3,838,158.005% $191,907.9010% $19,190.79 Insurance $3,838,158.00 10% $383,815.8015% $57,572.37
        Interest $6,739,164.005% $336,958.2010% $33,695.82 Interest $6,739,164.00 10% $673,916.4015% $101,087.46
D. TOTAL EXPENSES
  $            150,312,986    Variable overhead costs $      7,952,802.005% $397,640.1010% $39,764.01 Variable overhead costs $7,952,802.00 10% $795,280.2015% $119,292.03
        TOTAL BUSINESS DEPRECIATION $749,961.05 TOTAL BUSINESS DEPRECIATION $1,962,095.83
  E. NET PROFIT (C - D)*
 -$               105,050,977  




  






* The net profit should be   sufficient to cover the following:     *Consult your accountant, or the ATO publication Guide to Depreciating   Assets (available online at www.ato.gov.au)   *Consult your accountant, or the ATO publication Guide to Depreciating   Assets (available online at www.ato.gov.au) 
             regarding Depreciation Rates.


       regarding Effective Life Schedules.




Coverage       




  






Estimated tax liability  -$ 77,801,450,624,742    




  * * Consult your accountant, or   the ATO publication Guide to Depreciating Assets (available online at   www.ato.gov.au) 
Loan repayments   $                          10,216,662    




       methods for calculating depreciation   rates.




Owners drawings and / or dividends   $              21,088,707    




  






Purchases - plant and equipment   $                            6,390,000    




  






        




  






        




  






  F. TOTAL COVERAGE
 -$ 77,801,412,929,373  




  






        



   






  G. PROFIT RESERVES
  $77,801,307,878,396  



   







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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