BSBFIM601 Financial Performance Report-Assessment Task 2 –Project Solution

Financial Performance Report

Part A

Task summary

 

This assessment task requires the student to review Grow Management Consultants’ Profit and Loss and Cash Flow Statement Data for 2018–19 and write a financial performance report on this.

 

Required

 

• Access to textbooks/other learning materials

 

• Computer with Microsoft Office and internet access

 

• Profit and Loss 2017/18

 

• Profit and Loss 2018/19

 

• Cash Flow Statement Data 2017/18

 

• Cash Flow Statement Data 2018/19

 

• Financial Performance Report Template

 

• Estimated Costs and Income

 

 

Submit

 

• Financial performance report

 

 

Assessment criteria

 

For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria.

 

 

Carefully read the following:

 

It is now 1 year later, and you are required to review the profit and loss account for 2018 – 2019, as well as the Cash Flow Statement Data.

 

The Principal Consultant has asked you to review the conference costs, as the conference will not be repeated if it continues to lose money. Revisions need to be made to the conference budget and the conference fee increased to make it profitable. The review will be submitted to the company’s management as a bid to host the conference again.

 

To ensure that the revised concert budget is accepted with confidence by management, you are required to state the source of the figures that you use. This will make it easier for them to be checked and verified.

 

The Principal Consultant would like you to propose a cost-covering conference fee given a 10% increase in all the recorded costs for the conference as shown in the profit and loss statement (and that match the conference costs for the document you reviewed in Assessment Task 2) and assuming 70 people will attend the 2020 conference. The Principal Consultant would like a 20% return on the conference costs.

Complete the following activities:

Financial Performance Report

1. Write a financial performance report.

 

Analyse the information provided in the following files:

 

• Profit and Loss 2017/18

 

• Profit and Loss 2018/19

 

• Cash Flow Statement Data 2017/18

 

• Cash Flow Statement Data 2018/19

 

Based on your analysis, develop a short report for the Principal Consultant that includes

 

• Review of overall performance and gross/net profit margins.

 

• Calculation of variation in actual versus budgeted amounts for each income source.

 

• Calculation of variation in actual versus budgeted costs.

 

• Identify the discrepancies between agreed budget allocations for the conference and the actual figures

 

• Recommended revisions to the 2020 conference budget to deal with contingencies.

 

• Proposed conference fee for 2019 conference assuming attendance of 70 people and to make a profit of at least 20%. Show your calculations.

 

Use the Financial Performance Report Template to guide your work.

 

 

2. Submit your financial performance report to the Principal Consultant (your assessor)

 

Assessment Task 2

 

Marking Checklist for Part A

 

Student’s name:

 

		Completed		Comments
		successfully
Did the student:		Yes	No
Review profit and loss statements and cash flow
statement data and provide an accurate analysis
and reporting to show:
  Overall performance and gross/net profit
margins?
  Calculation of variations in actual versus
budgeted amounts for each income source?
  Calculation of variation in actual versus
budgeted costs, focusing particularly on
conference costs?
  Proposed 2020 conference costs
  Proposed conference fee for 2020 conference
Create a revised conference budget allocation
and an attendance fee that can be used as a bid
to hold the conference again in 2020?
State the source of the figures that they use for
their financial performance analysis, so the
figures can be checked for audit purposes?
Task Outcome:	Satisfactory 			Not Satisfactory 
Assessor signature
Assessor name
Date

 

 

Part B

 

Task summary

 

This assessment task requires you to review and evaluate financial management processes in relation to debtor management and to ensure Grow Management’s financial due diligence.

 

Required

 

• Access to textbooks/other learning materials

 

• Computer with Microsoft Office and internet access

 

 

Submit

 

• Debtor management report

 

 

 

Assessment criteria

 

For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria.

 

Complete the following activities:

 

1. Write a debtor management report

 

Review the Aged Debtor Report, noting that the company’s usual terms are payment 10 days from invoice.

 

Using the Internet, research best practice debtor management and make notes on your findings.

 

Your report should be approximately 1 page.

 

Provide a report for your CEO based on your analysis that includes:

 

• A summary: an interpretation of the information in the aged debtor report.

 

• Good practice debtor management

 

• Develop at least 5 recommendations that could be adopted by the company in response to your analysis. This will also be based on the debtor management research you conducted.

 

 

2. Submit your debtor management report to the CEO (your assessor)

 

Assessment Task 2

Marking Checklist for Part B

 

Student’s name:

 

 

		Completed
		successfully		Comments
Did the student:		Yes	No
Correctly identify issues in the aged debtor
report to inform decision-making?
Analyse and report on the effectiveness of
financial management processes in relation to
debtor management?
Develop and report on recommendations for
appropriate improvements to debtor
management practices based on best practice
debtor management approaches?
Task Outcome:	Satisfactory 			Not Satisfactory 
Assessor signature
Assessor name
Date