STUDENT NAME: MARIANNA SOFIANIDOU
STUDENT ID NUMBER
COURSE: DIPLOMA OF MANAGMENT
UNIT OF COMPETENCY: WEEK 4
Assessment no:# 4
TITLE OF ASSESSMENT: BSBFIM501A Manage budgets and financial plans
DATE DUE: 11/2/15 DATE SUBMITTED 4/5/2015
Review and evaluate financial management processes
This assessment task must be submitted online by the due date specified by your Trainer/Assessor and Assessment Plan for this unit of competency. Any variations to this arrangement must be approved in writing by your assessor.
Submit a file with the required evidence attached as per
Acknowledgement of original work, free from plagiarism as per Assessment Plan
Special needs (considerations if required…show more content… As part of your role, you will need to complete the following four activities.
As you are aware, one risk to the strategic plans of Big Red Bicycle (BRB) is bad debt and poor cash flow due to large trade debtors balances. Consider the following: according to its policies, Big Red Bicycles offers 30 day terms to debtors currently, BRB does not train sales staff on credit terms there is currently no enforcement of credit terms warehousing of stock is expensive at current leased premises many bicycles need to be thrown out if parts rust; this problem exacerbates the problem of waste expense.
You have the following information from the Statement of Financial Position and current ledger accounts in the electronic accounting system (MYOB AccountRight).
Complete the following.
1. Review the Statement of Financial Performance in the appendices to calculate:
a. The average debtor days: 362,500/2,900,000x365=45,625
b. The average creditor days: 80,000/1,000,000x365=29,2
c. The average stock turnover : 380,000/200,000=1,9
Show calculations and results on your response document for this assessment task.
To find the average debtor days I divided the amount of the trade debtors (362,500) by the amount of the sales (2,900,000) and then multiply for 365 that is the number of days in a year.
To find the average creditor days