Task 1
Answer the following questions. All answers should be between 80-150 words.
a. What is a balance sheet?
b. In general, what type of information would you include in a financial report?
c. What is the difference between profit and cash flow?
d. Why is it important for organisations to properly maintain daily financial records?
e. Suggest 10 areas of financial information and reports that can be used to monitor business performance.
Task 2
Categorise the following accounts into assets, liabilities, owner’s equity, revenue or expenses
Rent Paid
Sales of Tours
Motor Vehicle
Motor Vehicle Expense
Interest Received
Loan from ABC Pty Ltd
Task 3
With the information listed below please complete the profit and loss statement for the year 2016. In 2017 all the amounts are set to increase by 15% please complete the profit and loss statement for 2017.
Then answer the questions below.
Bank charges $987 Rent $96,000
Office Supplies $2,489 Sales $379,500
Purchases $128,259 Service Income $25,987
Freight $1,258 Advertising $11,650
Electricity $9,896 Insurance $12,250
Wages $85,000 Telephone $5,982
a. How much was earned in sales this year?
b. Was more or less spent on advertising this year compared to last year?
c. What is the total administrative expense for this year?
d. Has the organisation performed better or worse than last year?
e. What is the cost per unit for last year and this year if they sold 50,000 units?
T-1.8.1
Finance 1 Assessment Task 2, v1.0
Last updated on 15/05/2017 Page 5
Task 4
Calculate the averages and variances
SAM’S TRAVEL AGENCY
EXPENDITURE
EXPENSE
Jan
Feb
Mar
Apr
May
Jun
Stationary
165
168
157
173
160
172
Electricity
175
179
166
184
170
182
Telephone
148
151
141
155
144
154
Courier
121
123
115
127
117
126
Internet
135
138
128
142
131
140
Subscriptions
120
122
114
126
116
125
Brochures
119
121
113
125
115
124
Printing
152
155
144
160
147
158
Petty Cash
141
144
134
148
137
147
Rental of equipment
123
125
117
129
119
128
/3 marks
Month
Average expenditure
January
February
March
April
May
June
If the budgeted expenditure per month is $900.00 what is the % variance from the budgeted expenditure for each month’s actual spend? /3 marks
Month
Average expenditure
January
February
March
April
May
June
If you were the Finance Manager for Sam’s Travel Agency which months would recommend need to further investigated and why?
T-1.8.1
Finance 1 Assessment Task 2, v1.0
Last updated on 15/05/2017 Page 6
Task 5
Jane’s Restaurant has 175 seats with daily seat turnover of 1.2 and an average check of $17.00 and is open 6 days a week. The business operates 52 weeks in the year. Next year the average check is forecast to increase by 25%.
What will next year’s sales budget be?
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