Question
Andrew has been buying and selling timber slabs for a year. He also buys old furniture, renovates it, and then resells it. He has also
Andrew has been buying and selling timber slabs for a year. He also buys old
furniture, renovates it, and then resells it. He has also started repairing furniture for
customers.
On the first of May, Andrew's Slabs had the following assets:
Cheque account $19,783
Furniture and fittings $14,200
Motor vehicles $7,520
Office equipment & computers $4,750
Plant & equipment $4,050
An inventory count was performed on May 1 and found that Andrew's Slabs had
$127,540 of stock.
Andrew's Slabs' liabilities
Accounts payable $14,200
Andrew started the business with $45,000 savings and has $22,469 in retained
earnings.
The business transactions are still recorded in a cash receipts book, but the
transactions for May and June have been transferred to an Excel Workbook.
Andrew has modified a Financial Policy and Procedures from a company that he
worked for previously and wants all financial undertakings to comply with this.
Andrew feels that the business is getting too big for him and wants to put it on the
market. To that end, Andrew has asked you to read through the available data and
prepare financial statements and a report on Andrew's Slabs' financial viability.
When your report has Andrew's approval, you are to send a copy to George, a friend
of Andrew's, who is interested in buying the business.
Complete the following activities:
1. Create new Excel Workbook for Andrew's Slabs
Review Andrews' Slabs Financial Policy and Procedures to ensure compliance, then
enter Andrew's Slabs' transaction details from Andrew's Slabs Transactions May and
June, and Andrew's Slabs April Closing Balance, into the first four Worksheets in
your new Workbook.
Reconcile all transactions with Bank Statements.
Use data from the scenario information above and the transactions to create
Worksheet for each of the following for the months of May and June:
Balance Sheet
Profit and Loss
Trial Balance
Cash Flow Statement
Save this file as Andrew's Slabs Workbook.
2. Write email to Andrew (your assessor)
The text of the email should be in grammatically correct English, written in an
appropriate (polite, business-like) style.
The email text should also request clarification on any discrepancies that you found
during your reconciliation.
It should summarise the contents of the attachment and give a short report (tree or
four lines) on the liquidity, financial viability and profitability of Andrews' Slabs as
evidenced in the data that you have been given.
Attach your Andrew's Slabs Workbook to the email.
Your assessor will advise with the date and time of a meeting to discuss your Excel
Workbook and report.
3. Meet with Andrew (your assessor)
The objective of the meeting is to discuss your Andrew's Slabs Workbook and report
with Andrew.
At the meeting, you will be asked to:
Discuss the contents of the Excel Workbook that you have created, giving
Andrew a good understanding of how his business is performing.
Discuss your report with Andrew. You may have to modify the report to
reflect Andrew's feedback at the meeting.
During the meeting, demonstrate effective communication skills including:
Using clear language and correct terminology
Using non-verbal communication to assist with understanding
Asking questions to identify required information
Responding to questions as required
Using active listening techniques to confirm understanding
4. Revise your Excel Workbook
Update your Andrew's Slabs Workbook to include Andrew's requests from the
meeting.
Save this file as Andrew's Slabs Revised Workbook.
5. Update your report
Revise your short report (three or four lines) on the financial viability of Andrews'
Slabs to reflect any feedback that you received from Andrew at the meeting.
Create new Word document or use similar software program for your report.
Save this document as Financial Report.
6. Write email to Andrew (your assessor)
The text of the email should be in grammatically correct English, written in an
appropriate (polite, business-like) style.
It should summarise the contents of the attachment and seek Andrew's approval for
the Workbook and report to be sent to George.
Attach your Andrew's Slabs Revised Workbook and report to the email.
7. Write email to George (your assessor)
When you have received written approval for your Workbook and report, send an
email to George.
The text of the email should be in grammatically correct English, written in an
appropriate (polite, business-like) style.
It should start with an introduction and a summary of the contents of the attachment.
The email text should also include your short report on the financial viability of
Andrews' Slabs.
Attach your Andrew's Slabs Revised Workbook to the email.
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