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NumberNameTeacher Code Unit TitleFNSACC414 Prepare financial statements for non-reporting entitiesAssessment TaskTitle Due DateAssignment 1 – Cash Flows and Management ReportsExtension Details (where applicable)Extension Date for Submission Granted UntilSTUDENT DECLARATION? I have completed this ? I am aware that penalties exist for plagiarism. Refer to the Plagiarism and Misconduct page.? I have a copy of this assessmentSTUDENT SIGNATURE: DATE:For electronic submissions only:By typing your name in the signature field, you are accepting the above declaration.Section 1 – Student and Assessor InstructionsConditions This is an individual open book which can be completed after you have finished up to and including chapters 2, 3 and 4.Download the assessment document from Canvas and complete the questions. Save in Microsoft Word format and upload your assignment via Canvas.If you have any questions about this assessment please ask your teacher prior to submission.Task Overview and/or Description InstructionsComplete the two tasks at the end of the document using the information and stationery provided.Assessment DescriptionThis assessment will demonstrate your understanding of the processes involved in preparing a Statement of Cash Flows and preparing a report for management based on your calculation and interpretation of rates and ratios.You should:• Collect data required to produce financial statements from sources in line with accounting standards• Systematically code, classify, and check data for accuracy and reliability according to organisational policy and procedures• Check internal and external financial data to confirm their consistency and accuracy• Prepare financial statements using structure and format that comply with accounting standards and organisational requirements• Review statements for errors and compliance with accounting standards and organisational procedures, and amend as required• Obtain verification and authorisation from delegated persons. This means you need to check your work before submitting. By doing so you are agreeing and ‘signing’ off that everything is .Submission Details Submit the following:Task One: Completed Statement of Cash Flows.Task Two: Completed Part A – Calculation of Ratios.Task Two: Completed Part B – Report to Management.Submit by:Date due as per Unit Outline.Section 2 – Assessment Criteria (Evidence to be Provided by the Student)All of the required evidence within the marking guide listed below must be satisfactorily demonstrated for the task to be assessed as satisfactory.Marking GuideRequired Evidence Satisfactory Not Submitted Unsatisfactory1 Collection of data required to produce financial statements from sources in line with accounting standards.2 Systematic coding, classifying, and checking of data for accuracy and reliability according to organisational policy and procedures.3 Checking of internal and external financial data to confirm their consistency and accuracy.4 Preparation of financial statements using structure and format that comply with accounting standards and organisational requirements.5 Reviewing of statements for errors and compliance with accounting standards and organisational procedures, and amending as required.6 Obtaining verification and authorisation from delegated persons. This means you need to check your work before submitting. By doing so you are agreeing and ‘signing’ off that everything is correct.Feedback to StudentFeedback will be provided to you in Canvas via comments.Task One – Statement of Cash FlowsFrom the following information relating to Tamworth Flour Mills for the year ending 30 June 2019, prepare a Statement of Cash Flows using the stationery provided.Bad Debts Expense $1,500Cash Sales 77,000Cash received from Accounts Receivable 253,000Cash paid to Accounts Payable 154,000Money borrowed from Colony Bank 25,000Cash received from sale of Milling Equipment 94,160Cash paid for purchase of new Milling Equipment 127,457Interest Received 10,920Interest payments on Colony Bank Loan 2,400Wages paid 42,760Cash payments for other expenses 66,000Cash paid for new computer system 29,073Cash introduced by owners 50,000GST Paid to ATO 16,000Repayment of loan from ABC Finance 10,000Interest paid on ABC Finance Loan 700Cash at Bank as at 1 July 2018 8,800Cash at Bank as at 30 June 2019 70,490Tamworth Flour MillsStatement of Cash Flows for Financial Year Ended 30 June 2019Cash flows from Operating ActivitiesNet Cash from Operating activitiesCash flows from Investing ActivitiesNet Cash from Investing activitiesCash flows from Financing ActivitiesNet Cash from Financing activitiesNet Increase / decrease in cashCash at Bank as at 1 July 2018Cash at Bank as at 30 June 2019Task Two – Management ReportYou have been provided with the following financial reports for Arrow Trading for the year ended 30 June 2019. You are required to provide a brief report to management as per the instructions.Income Statement for year ended 30 June 2019Sales (all credit) $485,000Less Cost of Goods SoldInventory 01/07/2018PurchasesLess: Inventory 30/06/201953,250345,700398,95065,800333,150GROSS PROFITOther IncomeLess Operating expenses 151,8504,000155,850108,800NET PROFIT 47,050Balance Sheet as at 30 June 2019 AssetsAccounts ReceivableLess allowance for doubtful debts 81,0004,00077,000Inventories 65,800Prepaid expenses 800Accrued revenue 900 144,500Non- Current AssetsLand 80,000Buildings 75000Plant and equipment 65000Motor Vehicles 25000Office Furniture 7,750 252,750Total Assets 397,250Current LiabilitiesBank Overdraft 20,000Accounts Payable 55,500GST Payable 3,000Accrued Expenses 2,300 80,800Non- Current LiabilitiesMortgage Loan 75,000 75,000Total Liabilities 155,800NET ASSETS 241,450Owners’ EquityCapital – R. Arrow 1/7/18 232,400Add: Net Profit 47,050279,450Less drawings 38,000Total Owners Equity 241,450Part A)Calculate the following ratios for the year ended 30 June 2019. Show your workings.30/06/2019 30/06/2018Gross profit rate 40%Net profit rate 12%Current ratio 1.6:1Quick ratio 1.3:1Inventory turnover rate (in days) 63Accounts receivable collection period (in days) 52Part B)For each of the rates calculated above:• State whether the rate has increased, decreased or remained the same• Provide management with 2 possible reasons for the change.Gross Profit rateNet Profit rateCurrent RatioQuick ratioInventory turnoverAccounts Receivable collection period

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