Assessment Information

Subject Code:
Subject Name:
Assessment Title:
Weighting:
Total Marks:
Due Date:

BUS103
Accounting for Managers
Group assignment
20% (Assessable value)
60 marks
Friday of Week 10 i.e. 27 May 2016 by 11:59 pm AEST

Assessment Description
.
Required:
This assignment is to be completed in groups of three students. It consists of three
(3) questions, all of which must be attempted. (If it is unavoidable, groups of four
will be considered).
The assignment must be completed in groups/teams of three students and
submitted before the above due date to avoid any late penalties. Please make sure
you follow the guidelines noted in your subject outline especially those relating to
presentation of written work, late policy and academic integrity.
Submission:
The assignment will need to be submitted electronically through the student portal
use the link under Assessments overview and submission to submit the
information. The portal will close at 11:59 pm (AEST). Adelaide and Brisbane
students please allow for time difference.

BUS103 AFM 1T2016 Group Assignment

Page 1 of 3

Question 1 (30 marks)

A. A plant manager recently made the following statement at a team meeting:
No bean counter knows enough about my responsibilities to be of any
use to me. As I see it, our accountants may be needed to keep records
for shareholders and the Australian Tax Office, but I dont want them
sticking their noses in my day-to-day operations.
Required: As a management accountant, provide a suitable reply to the
plant manager. (10 marks)
B. Wayne Deng is reviewing the statement of cash flows for his technology
business. The statement has been provided by his accountant. He is dismayed
that the statement shows net cash outflows for investing activities.
Required: Discuss if Wayne should be concerned by this. (10 marks)
C. Your doctor knows that you are studying accounting. He has recently received
the annual report for a company in which he is a shareholder. The financial
report within the annual report is lengthy and your doctor requests your advice
as to whether he should contact the company to complain that the financial
information is not understandable.
Required: Provide a suitable reply to your doctor. (10 marks)

Question 2 (10 marks)

Luigi and Gina Cicello have decided to lease some newly built premises for the
purpose of opening a seafood outlet. They intend to provide a wide range of different
products, including a variety of seafood for sale and take-away fish and chips.

Required
Discuss the types of economic decisions Luigi and Gina Cicello will be required to
make, and the information they will need to make those decisions. Identify whether
Luigi and Gina may require the services of an accountant. Justify your answer.

BUS103 AFM 1T2016 Group Assignment

Page 2 of 3

Question 3 (20 marks)

Sunrise Ltd completed the following transactions during a given year:
No. Transaction

Ratio

Sold obsolete inventory at cost

Profit margin

Issued a share dividend on ordinary shares

Earnings per share

Declared a cash dividend on ordinary shares

Dividend payout

Paid the GST owing to the tax office

Dividend yield

Purchased inventory on credit

Quick ratio

Sold inventory for cash

Current ratio

Wrote off a bad debt against Allowance for Current ratio

Doubtful Debts

Collected an account receivable

Receivables turnover

Sold inventory on credit

Inventory turnover

10

Issued additional ordinary shares for cash

Debt ratio

Required
State whether each transaction would cause the ratio listed with the transaction to
increase, decrease or remain unchanged. Justify your answer.

BUS103 AFM 1T2016 Group Assignment

Page 3 of 3