BSBFIM601 Manage Finances

BSBFIM601 Manage Finances – Assessment 2 Last Updated: October 2016, V. No. 1.1

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ASSESSMENT 2 – Case study

Submission details

The Assessment Task is due on the date specified by your trainer. Any variations to this arrangement must be approved in writing by your trainer. Submit this document with any required evidence attached. See specifications below for details. You must submit both soft copies and printed copies of your answers. Soft copies- Upload on the eLearning to the specific submission folder with a cover page clearly indicating your name, student id, assessment no and the unit name or put those information in the header and footer of your documents. Printed copies- Submit to your Trainer with the "Assessment Cover Sheet" (Filled out and signed appropriately) attached on top of your documents.


For this assessment, students are to utilise the information given to complete the comparative balance sheet for TMH Ltd located in Appendix 1. The relevant information needed is also included. Once completed, students are to analyse the performance of TMH Ltd. By undertaking the following tasks: 1. Prepare a statement of Financial Position  Include appropriate diagrams and graphs to highlight relevant information  Ensure compliance with AASB standards 2. Prepare a statement of Financial Performance  As above, include relevant diagrams and graphs and ensure compliance with relevant

legislation and statutory compliance guidelines 3. Once the above statements are completed, students should further analyse the company’s performance by comparing the above data with company goals as stated in Appendix 2.  State how the company goals have varied from the actual data  Prepare relevant graphs and diagrams to further highlight these differences

BSBFIM601 Manage Finances – Assessment 2 Last Updated: October 2016, V. No. 1.1

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Appendix 1:

TMH Ltd. Comparative Balance Sheets for years ending 30 June 2008 and 2009 (To be completed by Students as part of Project 1) 2009 2008 $ $ Assets: Current Assets: Cash 52,000 46,000 Accounts Receivable ______ 134,000 Inventory 156,000 176,000 Total Current Assets: ______ 356,000 Land ______ 140,000 Buildings ______ 290,000 Less Accumulated Depreciation (120,000) (105,000) Total Land and Buildings ______ 325,000 Total Assets: ______ 681,000 Liabilities Current Liabilities Expense Payable 155,000 124,000 Accounts Payable ______ 197,000 Total Current Liabilities 322,000 321,000 Long-Term Borrowings ______ 139,000 Owner’s Equity Ordinary Share Capital 50,000 45,000 Retained Earnings ______ 176,000 Total Owner’s Equity ______ 681,000

Additional Information:

 Profit for year ended 31 June 2009 was $94,000

 Cash received from customers totalled $330,000

 Cash paid for inventory totalled $170,000

 Cash paid for expenses totalled $20,000

 Dividends paid during the year were: $67,000

 During the year, accounts receivable decreased by $10,000

BSBFIM601 Manage Finances – Assessment 2 Last Updated: October 2016, V. No. 1.1

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 Cost of new buildings acquired during the year $125,000

 No buildings were deposed of

 Land account was not affected by any transactions, but the fair market value of the land as of 31 June 2008 was $178,000

 Note that expenses included Entertainment Expense of 6,000

Appendix 2 TMH Management had the following aims for 2009:

 To reduce liabilities by 5%

 To increase profits by 8%

 To increase sales by at least 5% Undertake the tasks in Assessment 1 to demonstrate the variance between management goals and actual data. Were these goals met? Were they exceeded? Did they fall short?