ASSIGNMENT NO. 2

Assignment No. 2



Assignment No. 2

Task No. 1

BSBFIM501A Assignment 2 Question 1

Changes From the Start of May

Student name

 

 

 

Student number

 

 

 

 

Feb

Mar

Apr

May

Jun

Jul

Aug

FromSales in

$

$

$

$

$

$

$

Variables

Jan

40000

28000

8000

3200

 

 

 

 

70%

20%

8%

Feb

50000

35000

10000

4000

 

 

 

 

 

 

Mar

60000

42000

12000

4800

 

 

 

 

 

Apr

60000

42000

12000

4800

 

 

 

 

May

70000

 

49000

14000

5600

 

 

 

Jun

80000

 

 

56000

16000

 

 

 

Jul

80000

 

 

 

56000

 

 

 

28000

43000

55200

58000

65800

74800

77600

 

 

 

 

 

 

Feb

Mar

Apr

May

Jun

Jul

Aug

 

 

 

$

$

$

$

$

$

$

 

 

 

Jan

40000

28000

8000

3200

 

 

 

 

70%

20%

8%

Feb

50000

35000

10000

4000

 

 

 

 

 

 

Mar

60000

42000

12000

4800

 

 

 

 

 

Apr

60000

42000

12000

4800

 

 

 

 

May

70000

 

56000

7000

5600

80%

10%

8%

Jun

80000

 

 

64000

8000

 

 

 

Jul

80000

 

 

 

64000

 

 

 

28000

43000

55200

58000

72800

75800

77600

 

 

 

 

 

 

Feb

Mar

Apr

May

Jun

Jul

Aug

 

 

 

$

$

$

$

$

$

$

 

 

 

Jan

40000

28000

8000

3200

 

 

 

 

70%

20%

8%

Feb

50000

35000

10000

4000

 

 

 

 

 

 

Mar

60000

42000

12000

4800

 

 

 

 

 

Apr

60000

42000

12000

4800

 

 

 

 

May

80000

 

40000

32000

7200

50%

40%

9%

Jun

90000

 

 

45000

36000

 

 

 

Jul

100000

 

 

 

50000

 

 

 

28000

43000

55200

58000

56800

81800

93200

 

 

 

Analysis of Report

The report as presented in the above mentioned tables regarding account receivables exhibit that company should adapt the third proposed policy as it accelerates the collection process at the end of last two months under semi annual collection period. This is appropriate policy as it has also resulted an increase in projected sales due to rigorous collection procedure.

Task No. 2

Question 11

Item

Financial Indicator

Non-Financial Indicator

Reason

Gross Profit of the Cosmetic Section of XYZ Department Store was $12000 for May

It represents a financial performance indicator

It is a Financial performance indicator because it indicates company's ability to make profits by controlling cost of goods sold

ABC Motor Car Company Repaired 5 cars under warranty in June

It represents a non financial performance indicator

It is a Non Financial performance indicator because it represents company's operations for the month June.

There were three complaints made about customer service by the Super Market during the past week.

It represents a non financial performance indicator

It is a Non Financial performance indicator because it represents flaws in company's customer services unit.

Net profit of XYZ Department store was $72000 for May

It represents a financial performance indicator

It is a Financial performance indicator because it indicates company's net profit made for the year after deducting tax and interest.

8% of the inspected toys were rejected by the inspection department of the Rubber Toy Manufacturing Company in the month of September.

It represents a non financial performance indicator

It is a non Financial performance indicator because it indicates loopholes in company's manufacturing process that resulted in rejection of toys after inspection.

Question 12

The performance indicator in this scenario id Gross profit margin which is calculated as Gross profit / sales, which is 180,000/360,000 = 50% for the month April and 200,000 / 400,000 = 50% for the month May.

It is an operational performance index of company's internal performance which can be determined by number of complaints / number of customers served = 10 /500 = 2% i.e. 2% of complaints were received in the month of January.

It is a financial performance indicator of company's sales for the first quarter as compare to the total value of cars sold in a year. Therefore, the company has contributed to 88.88% i.e. 18 million / 4 million = 4.4 million per quarter and 4 million / 4.5 million = 0.88 or 88.88% of sales contributed by the company to the over all sales amount in one quarter.

It also represents the financial performance of the company in terms of sales as compare to all companies operating in the same state. The company has contributed 16.66% i.e. 125 / 750 * 100 for the whole month of April.

The scenario represents the internal operation indicator of people that were on leave for Monday. Therefore, there were 4% of workers out of all workers that were on leave on Monday i.e. 3/75 = 0.04.

Case Study 8.2

The accounting team is liable for providing information pertaining to cost of ...