Financial Management Processes Evaluation and Recommendations

School: University of Southern Queensland - Course: DIGITAL IN 8011 - Subject: Accounting

ASSESSMENT TASK 4 Review and Evaluate Financial Management Processes- Scenarios Trainer's Name: Student Names:Bhavik Patel Student ID: Assessment Due Date: Date of Submission: Declaration: I now sincerely affirm that the assessment work I present is all my own, with no parts copied from other individuals or writers without attribution to their publications. Signature:Date:

Assessment Task 4 BSBFIN501 Manage budgets and financial plans Question 1: a.Review the Statement of Financial Performance in the appendices to calculate: a.The average debtor days= Trade Debtors/ A/C sales * 365 =.362500/2900000*365 =46 days b.The average creditor days =Trade Creditors/ purchases * 365 = 80000/1000000*365 =29 days c.The average stock turnover =COGS/ Average stock = 380000/200000 =1.9 times/ 14.5 b. The following recommendations for improving cash flow could be made based on information acquired from data sources, the organization's needs and policies, and analytical techniques: 1.Adopting working capital management strategies such as debtor collection, trade credit or creditor payment periods, inventory management, cash rotation, and so on. By completing these tasks, the company will be able to make the most use of its financial resources and enhance its cash position over time. 1

Assessment Task 4 BSBFIN501 Manage budgets and financial plans 2.Improve policies since collecting money takes too long, indicating that the balance will run low. 3.Improve policies since collecting money takes too long, indicating that the balance will run low. 4.The business will be able to invest cash funds correctly and reinvest the returns into business operations by implementing cash management and financial management procedures. 5.Implement a penalty rate policy for late payments so that the incurred costs can be used to compensate. c. The following are the sources of information utilised in the computations and recommendations: 1.Statement of financial performance 2.Ageing Debtors Budge 3.Ledger accounts and ratios