115.112 Budgeted Financial Statements Assignment 1 2026 | Massey University

115.112 Assignment 1: Budgeted Financial Statements

Learning Outcomes:

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   decision making.

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 different scenarios and ascertain their impact on the profit, cash flow and resources of a business.

ASSIGNMENT 1 INSTRUCTIONS

How to Approach this Assignment

• Please read all instructions in this document before starting the assignment.
• Do not use another person’s instructions.
• To  complete the assignment you  need access to a computer,  and   a  spreadsheetpackage. The recommended spreadsheet software is Microsoft Excel and the templateprovided is an Excel one. By now you  should  be familiar with  Excel (refer CourseGuide Appendix 1).
• 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 assignment onStream.

Downloading the template

On Stream, go to the Assessment page and scroll down to the Assessment Resources and click on “Assignment 1 Template” and download the template. Use the naming convention Smith 88888888.xls (or xlsx) where Smith is your surname and 88888888 is your i.d.number.  Please note that if you try to modify the excel file without downloading it first, your modifications will NOT be saved. Remember to save to your own computer andto make regular backups.

Completing the Assignment

Entering Data

You will answer the assignment on the template. As an Excel program will automatically mark your assignment, care must be taken in how you prepare your answer. If the following instructions are not followed, you may lose marks.The data sheet is where you enter the input data. 

The other sheets contain the output offinancial and numeric  data. On  the  output sheets you should   only use formulae  as  thiscreates a workbook which is truly flexible. (Refer to Budget Spreadsheet Completion below).

It  is   important to know   that  the   program  operates on  named   cells  contained   within  the template. The names of these cells must not be altered or relocated. To avoid this DO NOTuse the cut and paste function, or drag and drop cells from one location to another. It is alsonot advisable to   insert   or   delete   rows   or   columns.   Copying,   pasting,   and   deleting   cell contents is acceptable.

Budget Spreadsheet Completion

Marks will be awarded for the functionality and flexibility of your spreadsheet. The aim of this assignment is to produce a workbook of spreadsheets in which any changes in financial andnumeric data in the Data Sheet will result in an update of the whole workbook, therefore youmust link the output with the Data 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 formulae shouldbe made in blue cells. Not all blue or pink shaded cells require entries.

Assignment Brief

Sachin Reddy operates a gift store at Bright water Mall called Lucky Star. Sachin’s estimate of sales are given in the table below. Sales tend to reduce in the winter.

As a general rule 70% of sales are for cash with the remainder on credit. Of the credit sales, 90% will be received in the month after sale and the balance two months after.

Purchases and Inventories

Sachin sources most of the gifts from wholesalers in the Nelson region. Goods are purchased in anticipation of the next month's sales. The purchases cost is 65% of the selling price. The wholesalers give a month's credit with payment due on the 20th of the month following purchase. (For the purposes of this assignment you may ignore any inventory held).

Non-Current Assets

Other

It is business policy to use the straight line method of depreciation for all non-current assets.
The furniture and fittings for the shop cost $35,000 and have an expected life of 10 years with no residual value.
The office equipment cost $25,000 and it was estimated that the office equipment will be suitable to operate for five years after which time it will have a resale value of $5,000.

• There are two assistants who work in the shop and the monthly wages bill is $6,500 a month which is payable during the month. (Ignore PAYE and other deductions).
  Communication costs are estimated at $700 a month, payable on the 20th of the month following purchase.
  The monthly rent on the shop of $4,200 is payable on the first of the month.
  Electricity expenses of $300 a month are payable the month after use.

The annual insurance premium is $3,600 and was paid on the 2nd of March 2019.

• Advertising is estimated at $500 a month and the terms are that the advertising should be paid in the month it is incurred.
  Balances at end of March
• The balance of Cash at Bank on 31 March 2019 is $25,500.
• The balance of Accounts Payable for goods purchases as at 31 March 2019, is $32,500. • Accounts Payable for electricity as at 31 March 2019, is $280.
• Accounts Payable for communication costs as at 31 March 2019, is $740.
• Accounts Receivable relating to March sales as at 31 March 2019, is $14,000 and relating to February sales, is $1,600. (Hint: Assume the collection of February and March Accounts Receivable will follow the collection pattern given for April to June).

Required:

1. On the Data Input Sheet, enter the given data which has not yet been entered. (2 marks)
2. On Revenue & NCA sheet, complete the revenue, cash collections, purchases and depreciation calculations for the quarter 1 April to 30 June 2019. (42 marks) 
3. On the Cash Flow Sheet, complete the Projected Cash Flow from Operations for each of the three months April, May, June and the totals for the quarter 1 April to 30 June 2019. Note: Some cash flow rows have been named, but you will need to enter the remaining cash flow names yourself. (32 marks)
4. On the Income Statement Sheet, complete the Projected Income Statement for the quarter ended 30 June 2019. A month by month Income Statement is not required. Note: Some expenses have been identified but you need to enter the remaining expenses yourself. (10 marks)
5. Check the flexibility of your workbook by changing the purchases percentage of sales 65% to 60%. Enter the resulting Net Profit and ending Cash Balance in the boxes provided on the Income Statement Sheet (remember to change the purchases percentage of sales back to the original amount before submitting your assignment). (14 marks)

Submission of the Assignment (Uploading your file to Stream)

Just below the main heading on the Assessments page on Stream there is a link "All assignments can be submitted by clicking here". Follow the prompts. Stream records the submission date and time. See the Course Guide for policies re extensions and late submissions. Penalties will be applied to late submissions for which an extension has not been granted, but note below the cut off time of a week after the due date, after which no assignments will be accepted for marking.

Assignment Queries

Please feel free to keep in touch with the 115.112 team regarding this assignment, preferably through the Assignment 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 assignment is at individual, not group level. Discussion is fine but do not post your answers to the assignment 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 paper, 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 assignments and feedback

You will be notified when your marked assignment is available and it will be located at the same point on Stream where you uploaded your assignment. Note that the normal turnaround of assignments is three working weeks.
Individual feedback is included on all excel files in each marked cell and on the results sheet. Apart from that, there will be feedback in the form of suggested solutions and overall comments by the marker.