MAA104-Financial Literacy Assignment
- Subject Code :
MAA104
- University :
Deakin University Exam Question Bank is not sponsored or endorsed by this college or university.
- Country :
Australia
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Learning Outcome Details Unit Learning Outcome (ULO) ULO1 Explain the key elements that impact financial, resourcing and investment decision making in business. ULO2 Explain the key elements that influence personal finance decisions. ULO3 Recognise, create and use key financial and non- financial reports that are relevant to financing, resourcing and investment decisions in business for decision making. Question Tanya had recently taken over her aunt’s business selling pots and ceramic wares after she graduated from Deakin University with a Bachelor of Business in 2019. Now she wants you to do some financial analysis for the business. Tanya has provided you with the following financial statements for 2020/2021 and 2021/2022 fiscal years. Please ignore any taxation related matters in this question. Required:
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A note on plagiarism and collusion
- Plagiarism and collusion are forms of cheating and is considered a serious academic misconduct, and severe penalties are associated with them. Please refer to the MAA104 unit outline for your responsibilities with regards to plagiarism and other academic offences.
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Question
Tanya had recently taken over her aunt’s business selling pots and ceramic wares after she graduated from Deakin University with a Bachelor of Business in 2019. Now she wants you to do some financial analysis for the business. Tanya has provided you with the following financial statements for 2020/2021 and 2021/2022 fiscal years. Please ignore any taxation related matters in this question.
Required:
- From the information above, prepare properly classified Income Statement for the 2022/2023 fiscal year.
- From the information above, prepare Balance Sheet as at the fiscal end of 2023.
- Prepare a schedule of cash collections, a schedule of purchase payments, and a cash budget for all the four quarters in 2024.
- Tanya’s aunt had started the business as a sole-proprietorship upon commencement of the business. She remains a major owner of the business whilst Tanya is in charge of the financial and operating matters of the business. Should the ownership structure of the business be converted from sole trader to a partnership or a private limited company? Please provide three justifications.
- Tanya was approached by her friend who works as a Fund’s Manager to invest in a project that promises her 5.65% p.a. compounding annually for three years. Her initial investment required is $100,000. She is aware that the interest rates paid by the banks on term-deposits are currently around 4.9% for a 36-months term.
- How much can Tanya expect to receive at the end of the investment project should she invest at 5.65%?
- What are the advantages and disadvantages of placing this amount in a term-deposit? Suggest any other investment options which she could consider to earn a higher return on investment.
