BSBFIM601A: Financial Management Assessment Answers

Solution Code: 1AJCH

Question:

This assignment is related to ”Financial management” and experts atGrade Saviourssuccessfully delivered HD quality work within the given deadline.

Financial Management Assignment Help

These assignments are solved by our professional Financial Management assignment Expertsat Grade Saviours and the solution are high quality of work as well as 100% plagiarism free. The assignment solution was delivered within 2-3 Days. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Solution:

1. Statement of financial position

Statement of Financial Position Of TMH Ltd. as at 30 June 2009.

	2009	2008
Assets:	$	$
Current Assets:
Cash	52,000	46,000
Accounts Receivable	124,000	134,000
Inventory	156,000	176,000
Total Current Assets:	332,000	356,000
Land	178,000	140,000
Buildings	415,000	290,000
Less Accumulated Depreciation	(120,000)	(105,000)
Total Land and Buildings	473,000	325,000
Total Assets:	805,000	681,000

Liabilities
Current Liabilities
Expense Payable	155,000	124,000
Accounts Payable	167,000	197,000
Total Current Liabilities	322,000	321,000
Long-Term Borrowings	192,000	139,000

Owner's Equity
Ordinary Share Capital	50,000	45,000
Retained Earnings	241,000	176,000
Total Owner's Equity	805,000	681,000

Note: Paragraph 10 of AASB 101 requires an entity to display complete set of financial statements (Leo, Susan, Sweeting, & Knapp, 2015). Besides that paragraph 38 of AASB 101 requires an entity to disclose the comparative financial in respect of previous reporting period.

Graphs and Charts

Figure 1 From the above chart it is clear that there is increase in cash balance but a decline in accounts receivable and inventory.

Figure 2 From the above chart it is clear that there is increase in balance of land due to revaluation and increase in balance of buildings due to purchase of new building.

Figure 3 There is increase in expense payable liability and decline in accounts payable liability.

Figure 4 There is increase in share capital and retained earnings.

Workings

Cash:
Opening balance	46,000
Add: Received from cash sales	320,000
Add: Received from AR	10,000
Add: Share capital proceeds	5,000
Less: Accounts Payable	(170,000)
Less: Expenses	(20,000)
Less: Dividends	(67,000)
Less: Buildings	(125,000)
Add: Long-Term Borrowings	53,000
Closing balance	52,000

Accounts Receivable:
Opening balance	134,000
Less: Cash Received	(10,000)
Closing balance	124,000

Expense Payable:
Opening balance	124,000
Add: Expense for the year 2009 (b.f.)	51,000
Less: Cash paid for expense	(20,000)
Closing balance	155,000

Retained Earnings:
Opening balance	176,000
Add: Transfer	65,000
Closing balance	241,000

Accounts Payable:
Opening balance	197,000
Add: Inventory purchased (b.f.)	140,000
Less: Cash paid	(170,000)
Closing balance	167,000

Inventory:
Opening balance	176,000
Add: Inventory purchased	140,000
Less: Cost of goods sold	(160,000)
Closing balance	156,000

Land:
Opening balance	140,000
Add: Gain on revaluation	38,000
Closing balance	178,000

Buildings
Opening balance	290,000
Add: New building purchased	125,000
Closing balance	415,000

2. Statement of Financial Performance

Statement of Financial Performance Of TMH Ltd for the year ended 30th June 2009.

Revenue	320,000
Cost of goods sold	(160,000)
Gross Profit	160,000

Other Income	-
Entertainment expense	6,000
Other expense	45,000
Depreciation	15,000
Income tax	-
Profit for the year	94,000
Gains on land revaluation	38,000
Total comprehensive income for the year	132,000
Dividends Paid	67,000
Profit transferred to retained earnings	65,000

Graphs and Charts Figure 5 Majority of expense is from cost of goods sold i.e. 71% of the cost is inventory cost. Workings

Depreciation:
Accumulated Dep. Opening Bal.	105,000
Accumulated Dep. Closing Bal.	120,000
Depreciation for year 2009	15,000

3. Further Analysis

Figure 6 The target of management was to make a reduction in the liabilities by 5%. However in real life there in an increase of 11.69% in the liabilities. Thus it is clear that the company goals have not met and there is negative variance.

Year---->	2009	2008
Current Liabilities	322,000	321,000
Long-term Liabilities	192,000	139,000
Total Liabilities	516,009	462,008

Increase in liabilities	54,001
Percentage change	11.69%
Management Target	-5%

NOTE: IT IS NOT POSSIBLE TO ANALYSIS ‘CHANGE IN PROFITS’ AND ‘CHANGE IN SALES’, AS DATA FOR YEAR 2008 IS NOT AVAILABLE.

Find Solution for FinancialManagement assignment by dropping us a mail at help@gradesaviours.com along with the question’s URL. Get in Contact with our experts at Grade Saviours and get the solution as per your specification & University requirement.

Hey MAS, I need Assignment Sample of

Looking For Complete Assignment Sample

Get It On WhatsApp