115112 Accounting for Business Assignment Brief 2026 | Massey University

Learning Outcomes of 115112 Accounting for Business

Relationship of Assignment to Learning Outcomes (Refer Course Guide).

L.O.2. Apply generally accepted accounting practices

Although these are projected statements, they are prepared on the same basis as historical statements. Some of the transactions will help you understand the impact of  accounting policies such as depreciation and accrual accounting with the latter especially evident when comparing the Income Statement and Cash Flow Statement.

L.O.4. Apply   management   accounting techniques   to   planning   and   short-term   decisionmaking
As   the   scenario   is   set   in   the   future,   preparing   the   assignment   should   also   help   with understanding the planning process and the use of tools such as excel to model differentscenarios and ascertain their impact on the profit, cash flow and resources of a business.

ASSESSMENT INSTRUCTIONS

How to Approach this Assignment

• Please read all instructions in this document before starting the assessment.
• Do not use another person’s instructions. Students are divided into groups and eachgroup has its own set of instructions with slightly different data. If you are found to haveused another student’s data, you will be penalised.
• To complete the assessment, you need access to a computer, and  a spreadsheetpackage.The   recommended   spreadsheet   software   is Microsoft Excel   and   thetemplate provided is an Excel one. If you are not familiar with Excel you should workthrough the Excel Tutorial 1 provided on Stream, under the Assessment Resourcestab.
• You should first study the relevant material in the text and make sure you understandthe concepts covered.
  Contact a member of the Teaching Team if you have any problems with MicrosoftExcel, or with downloading the files from Stream and submitting the assessment onStream

Completing the Assignment

Entering Data

You will complete the assessment on the template. You must take care in how you prepare your answer. If the following instructions are not followed, you may lose marks:

• The ‘Data Input’ sheet is where you enter the input data, typing amounts and words directly into the relevant cells.
• The other sheets contain the output of financial and numeric data.
• On the output sheets, you should only use formulas, as this creates a workbook, which is truly flexible. (Refer to Budget Spreadsheet Completion on the following page).
• This assessment is marked directly on the file. The column, shaded in green, is dedicated for allocating marks. There are formulas used in these columns that pull your marks through to the ‘For Marker’s use only’ sheet.
• DO NOT make any changes to the sheets, e.g., add rows or columns. Contact me, Christelle Roos, if you feel you need to make any changes, and I will advise you.

Budget Spreadsheet Completion

Marks will be awarded for the functionality and flexibility of your spreadsheet. The aim of this assessment is to produce a workbook of spreadsheets in which any changes in financial and numeric data in the Data Input sheet, will result in an update of the whole workbook, therefore you must link the output with the Data Input sheet, and you should not enter numbers directly into the output areas on the other worksheets.

To help you, certain cells have been shaded pink and other blue:

• Entries of numbers or names from the information given should be entered in pink cells.
• Entries of formulas should be made in blue cells. Not all blue or pink shaded cells require entries.
• Do Not use the green shaded cells.

Submission of the Assessment (Uploading your file to Stream)

Follow the ‘Instructions for Submitting Assessments to Stream Assignment boxes’ available under the Assessments section. Stream records the submission date and time. For policies regarding extensions and late submissions, see the information under the Assessment section. Penalties will be applied to late submissions for which an extension has not been granted.

Assessment Queries

Please feel free to keep in touch with the 115.112 team regarding this assessment, preferably through the ‘Course discussion’ forum. That way all students benefit and often we have found that the best way of learning is through discussion with your peers as well as teaching staff.
Please note that this assessment is at individual, not group level. Discussion is fine but do not post your answers to the assessment on Stream through discussion forums, as that will lead to penalties. If you are uncertain, please contact the teaching staff.

There are a large number of students in this course but that does not mean that you are not each individually very important to us. We value each student and will try to provide appropriate guidance to the best of our ability.

Return of marked assessments and feedback

You will be notified when your marked assessment is available, and it will be located at the same point on Stream where you uploaded your assessment. Note that the normal turnaround of assessments is three weeks.
Feedback will be provided in the form of suggested solutions and overall comments by the marker.

Assessment Brief

Dian Fossey inherited money, which she partly used to buy a shop in Dunedin. She named the shop Unique Tables, which will be an outlet for selling tablecloths. Sarah plans to openher shop on 1 April 2024. She has done some preparatory work during March to enable the business to operate.

The following is financial information relating to this shop.

A friend who runs a similar business in Wellington advises Dian that 80% of sales are for cash with the remainder on credit. Of the credit sales, 85% will be received in the month after sale and the balance two months after.
The tablecloths will sell for $150 per unit.

Purchases and Inventories

• Dian will source the plain (no designs) tablecloths from a factory in the Dunedin region and each month will purchase sufficient tablecloths to ensure a closing balance of inventory of 20% of the next month’s sales.
• To guarantee that she has inventory to sell from 1 April, Dian purchased 30 tablecloths in March.
• The average purchase price per tablecloth is $20.

Payment for purchases will be made on the 20th of the month following.

• Dian is an artist and plans to paint unique designs on each tablecloth.
• The estimated cost of paint per tablecloth is $5.00.
• Dian bought a large quantity of paint prior to opening the business and therefore, the purchasing of paint and payment for it may be ignored, as may the inventories of paint.

Non-Current Assets

• It is business policy to use the straight-line method of depreciation for all non-current assets.
• The shop cost $400,000 with an expected life of 50 years with no residual value.
• The furniture and fittings for the shop cost $15,000 and have an expected life of 10 years with a residual value of $3,000.
• All the assets were purchased in March 2024.

Other information:

• Dian invested the unused portion of her inheritance in an interest earning investment in the name of the business. The interest earned will be deposited into the business’s bank account, monthly. This is estimated to be $250 per month.
• As Dian is painting most of the time, she employs one salesperson who will serve in the shop. The monthly salaries for this salesperson, is $3,000 a month. The salesperson is paid on the 20° of each month for that month. (Ignore PAYE and other deductions). General costs (including utilities, telephone, stationery, Internet provider etc.) are estimated at $520 a month, starting from April 2024. The general costs will be paid on the 20th of the month following the month they are incurred.
• The rates on the building are $300 a month and are paid quarterly in advance. The first payment is due on 1 April 2024.
• bian Intends to spend $350 a month on advertising in the local newspaper. Their terms are that accounts are paid in the month the advertisement appears.
• The annual Insurance premium is $3,120 and was paid on 25 March 2024.
• Dian will take $2,000 a month from the business for her personal use.
• The balance of Cash at Bank on 1 Aprill 2024 I6 $15,000.
• The balance of Accounts Payable for tablecloths purchases on 1 April 2024 is $600.

Required

1. On the Data Input sheet, enter the data as provided in the assessment brief. Some data has been pre-entered. You are only required to complete the missing data in the pink cells. (11 marke)

2. On the Sales, Purchases & Depreciation sheet, complete the Sales Collection budget. Purchases budget, and the Depreciation calculations for the quarter 1 April to 30 June 2024 by entering formulas in the blue cells. (37 marke)

3. On the Cash Flow Sheet, complete the Cash Flow Budget for each of the three months April, May, and June and the totals for the quarter 1 April to 30 June 2024 by entering formulas in the blue cells and descriptions (revenue or costs) in the pink cells.(25 marke)

4. On the Income Statement Sheet, complete the Projected Income Statement for the quarter ended 30 June 2024 by entering formulas in the blue cells and descriptions (revenue or costs) in the pink cells. A month-by-month Income Statement is not required.(12 marks)

5. Check the flexibility of your workbook by changing the estimated Selling Price on the Data Sheet from $150 to $180. Enter the resulting Net Profit and ending Cash Balance in the pink boxes provided on the Income Statement Sheet. (Remember to change the Selling Price back to the original amount before submitting your assignment) (15 marks)