STUDENT ASSESSMENT BOOKLET Finance SITXFIN003 Manage finances within a budget SITXFIN004 Prepare and monitor budgets |
Assessment Task 1: Written Questions |
Task summary
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When and where do I need to complete this task?
What do I need to submit?
Instructions
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16
Question 17
Question 18
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Description |
Advantage/s |
Disadvantage/s |
Top down |
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Bottom up |
Question 19
Question 20
Question 21
Question 22
Number of rooms available |
Forecast occupancy |
Average Room Rate |
Operating Days p/year |
Forecasted room revenue (sales) |
Example: 122 |
75% |
$105 |
365 |
$3,506,737 |
50 |
62% |
$90 |
310 |
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15 |
98% |
$86 |
365 |
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300 |
89% |
$220 |
365 |
Question 23
Working out how much to charge for food and drink.
Question 24
What do I need to hand in for this task? |
Have I completed this? |
Answers to all questions |
o |
Task summary
Assessment Task 2: Case Study |
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Instructions
Budget review You are an Operations Manager with Marino Enterprises and oversee the operations for six of the venues. John Marino has asked you to monitor and review specific budget figures for two businesses as presented below and present an analysis of their meaning for the organisation. The management team are keen to identify issues that need to be addressed based on an analysis and review of the budget data in order to optimise the viability of the business while retaining market share, market position and their high product and service standards. You have been presented with the following information:
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Question 12
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Question 14
What do I need to hand in for this task? |
Have I completed this? |
Answers to all questions |
o |
Assessment Task 3: Financial and Statistical Calculations |
Task summary
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Instructions
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Name of ratio |
Short-term or Long-term |
Quick asset ratio |
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Proprietary ratio |
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Working capital ratio |
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Interest coverage |
Question 15
Question 16
Question 17
What do I need to hand in for this task? |
Have I completed this? |
Answers to all questions |
o |
Assessment Task 4:Project |
Task summary
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When and where should the task be completed?
What needs to be submitted?
Instructions
Part A |
You are the manager of a small bed and breakfast owned by Marino Enterprises. Comfy Inn is located in country Victoria and was purchased by the company two years ago when the long term owners decided to sell. The B&B was sentimental to John Marino and Betsy Smithas they used to stay there in their younger days. When it came onto the market they snapped it up. Some background on the B&B – they are a small luxury homestay property that offers seclusion, privacy and romance for an adult’s only stay. There are three cabins onsite; each fully contained. They provide a full breakfast in the main house and a full bar that is open for drinks and canapés from 4pm – 6pm on Friday, Saturday and Sunday afternoons. The bar is open at other times for snacks, coffee, tea, smoothies, soft drinks and alcohol purchases. Marino Enterprises looks after the property grounds and the manager’s wage. Everything else is the responsibility of the manager who resides onsite in the main house. Your partner is employed as the short order cook and you pay a casual cleaner. As part of the onsite manager’s role, you and your partner complete the general housekeeping duties when it is quiet. It is budget preparation time and Betsy has asked you to meet with her to discuss the details. Betsy has provided you with last year’s actual revenue received, broken down into accommodation, food and beverages. |
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You will be required to actively participate in the meeting and take notes on the detail provided (by your assessor in the role of Betsy). Have this assessment work sheet with you to record the details and be prepared to ask questions to clarify the information provided.
Your assessor will give you details on when this meeting will be held.
In the meeting, you will need to confirm (take notes as required) the following:
You also know from your experience and the management of the property that:
What do I need to hand in for Part A of this task? |
Have I completed this? |
Email and draft budget for B&B managers’ discussion |
o |
Memo and draft budget for discussion and approval from Betsy |
o |
Part B |
Betsy has come back to you with some changes to be made to the draft budget. These changes will have come via email or feedback on your hard copy draft. Betsy also thinks that you have over calculated the cost of stock and the wages at 25% is too high. She has asked you to consider options for reducing the cost of both without effecting customer service levels, the quality of product and of course the income. She has also asked you to have the final draft of the budget back to her within the week. |
Make the changes to your budget in the accounting software. Produce a final budget report and submit it to your assessor along with a memo outlining the changes you have (or have not) made with an explanation justifying your decisions. In your justifications include the advantages and disadvantages of accepting your changes. Submit your memo and report to your assessor by the due date.
What do I need to hand in for Part B of this task? |
Have I completed this? |
Memo and final budget |
o |
Part C |
Betsy has approved your budget and you need to sit down with the short order cook to discuss the budget as they do all of the ordering and are responsible for meeting the food and beverage budget requirements. Assume that one of your recommendations to Betsy was to drop the cost of food purchases without dropping the quality. The short order cook is not happy with this decision and you need to collaborate with them to come up with the alternative options. The B&B is known for its exquisite breakfasts and currently, all food is sourced locally from individual suppliers, and where possible, organic produce. Everything is made from scratch and most items of the menu are made with fresh ingredients. The menu is as follows: § Homemade bircher muesli with seasonal fruit compote and activated nuts. § Baked french toast with fresh seasonal fruit and blackberry compote. § Buttermilk pancakes with orange cardamom syrup. § Three egg omelette with your choice of fillings – chorizo, bacon, mushrooms, spinach, feta, goat cheese, brie, blue cheese, vintage cheddar and tomatoes. § Pumpkin and spinach quiche with rocket breakfast salad. § Eggs benedict with your choice of ham, smoked salmon, mushrooms or bacon. § Corn and zucchini fritters with a delectable potato rosti and breakfast salad and salsa. § The world’s best chicken and champagne breakfast. § The big breakfast with steak, pork and fennel sausages, bacon, tomatoes, mushrooms, spinach, potato rosti and toast. § Avocado smash with feta and oven roasted capsicum on your choice of four different breads. § Good ole’ bacon and eggs on your choice of bread. You believe that there are several ways to reduce the costs. |
What do I need to hand in for Part C of this task? |
Have I completed this? |
Memo |
o |
Part D |
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It is September and the budget is as follows:
You as the manager and the small order cook have agreed to speak to your fruit and vegetable supplier to see if there are any possibilities of reducing the cost of your purchases. You want to reduce your delivery from 4 days per week to twice a week and rather than telling them what fruit and vegetables you want, you are requesting them to select the best quality for the cheapest price, ie the cheapest on the day. Also as part of cost savings you have had to make the decision to move away from local suppliers of shelf items such as porridge, flour, herbs and spices, sugar, etc. Now that Costco has opened you have the option of buying in bulk. You have calculated that this will save you approximately $3,000 - $4,000 per year. |
As the manager you have been trying to cut costs in wages by doing the housekeeping yourself during the week and on Saturdays. While you have made savings you have run yourself into the ground and are exhausted. It has also meant that customer service has suffered because you are running from the office to the cabins during the two to three hour cleaning window while customers wait. Sales have been up with accommodation running at 92% occupancy over the past four months. You want to bring the casual housekeeper back in for 7 days per week. This will add approx. $4000 to your monthly expenditure. |
What do I need to hand in for Part D of this task? |
Have I completed this? |
Email communication with supplier |
o |
Memo to Betsy |
o |
Part E |
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It’s the beginning of November and the following income and expenses are for October. Invoices received:
Receipts:
Credit Card Payments (guests):
The last two months have seen some changes. There was a major hail storm in the area which caused damage to one of the cabins. The storm caused a lot of damage and the cabin has been uninhabitable for 5 weeks across September and October. The occupancy rate has dropped to 69%. The insurance company is paying for the majority of the damage but $5,000 will need to be paid out of pocket. |
Use the information above to update the budget in the blank cells.
September Budget |
September Actuals |
October Budget |
October Actuals |
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INCOME |
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Accommodation |
2,940 |
2,028 |
3,780 |
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Food |
1,890 |
1,228 |
2,520 |
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Beverages |
1,995 |
1,296 |
1,890 |
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TOTAL REVENUE |
6,825 |
4,552 |
8,190 |
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EXPENSES |
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Overhead |
0 |
0 |
0 |
0 |
Stock |
1,554 |
1,180 |
1,764 |
|
Lease |
1,500 |
1,500 |
1,500 |
1,500 |
Insurance |
700 |
700 |
0 |
0 |
Repairs/maintenance |
400 |
380 |
400 |
|
Advertising |
200 |
200 |
200 |
200 |
Electricity |
2,200 |
2,200 |
0 |
0 |
Laundry |
800 |
500 |
800 |
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Wages |
1,706 |
3,300 |
2,048 |
2,800 |
Miscellaneous |
600 |
290 |
600 |
700 |
TOTAL EXPEND. |
9,660 |
10,250 |
7,312 |
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+/- |
-2,835 |
-5,698 |
878 |
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Cash on hand: start |
9,978 |
11,534 |
7,143 |
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Cash on hand: end |
7,143 |
5,836 |
8,021 |
What do I need to hand in for Part E of this task? |
Have I completed this? |
Cash flow report and memo |
o |
Part F |
It is the end of December and the actual cash amount is down 53% on the original projection. A large contributing factor is that income targets have not been met and the food and beverage budgets have been over spent by 20%. Betsy has asked you to come up with recommendations to solve the income problem, forecast for the remaining six months of the financial year and communicate the new targets and the importance of meeting budgets to the cook. The good news is that you have heard through the grapevine that there are a number of events happening in the region in the last half of the year. These are weekday tourism events and there are a number of big construction projects where employees drive-in and drive-out for shifts Monday to Friday. |
What do I need to hand in for Part F of this task? |
Have I completed this? |
Memo |
o |
Earn back money you have spent on downloaded sample
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