This following case study based on AUSTRALIA's scenario. Therefore for solution need to consider Australian GST, Income Tax etc.

Perfect Plants Pty Ltd Perfect Plants Pty Ltd Cash Flow Statement for the year ended 30/6/18 Profit and Loss Statement Cash Flows from Operating Activities $ For the year ended 30/6/18 Retail Cash Sales 1,050,000 Receipts from Debtors 4,750,000 Revenue Interest Received 10,000 Retail Cash Sales 1,050,000 GST Collected 640,000 Wholesale Credit Sales 5,450,000 GST Paid (458,500) Interest Received 10,000 6,510,000 ATO - GST Settlement (171,500) Less Cost of Sales Payments to Creditors (2,535,000) Cost of Goods Sold 3,200,000 Wages & Salaries (1,055,000) Cartage Inward 150,000 3,350,000 Interest Paid (200,000) Gross Profit 3,160,000 Other Operating Expenses (985,000) Less Expenses Income Tax Paid (201,000) Total Cash Flow from Operating Activities Wages & Salaries 1,055,000 844,000 Interest Paid 200,000 Cash Flow from Investing Activities Other Operating Expenses 985,000 Purchase of Equipment (250,000) Bad Debts 100,000 Total Cash Flows from Investing Activities (250,000) Depreciation 150,000 2,490,000 Cash Flow from Financing Activities Drawings (120,000) Net Profit Before Tax 670,000 Loan Repayments (350,000) Income Tax Expenses 201,000 Total Cash Flows From Financing Activities (470,000) 124,000 Net Profit After Tax 469,000 Net Change in Cash Position Opening Bank Balance 76,000 Closing Bank Balance 200,000Part 1: Prepare a report You are the financial manager for Perfect Plants. Use the above information to assist you in preparing a report to your on the budgets and expenditure of Perfect Plants. You will also be required to use the ATO website to find some of the answers. Where appropriate, provide details of where you found your information and any calculations performed. Your report must include: 1. An evaluation of the accounting method used and whether it is approriate 2. An evaluation ofthe income tax rate applied 3. The GST implications for Pefect Plants. 4. Record keeping and storing requirements 5. Collection methods of data and information used 6. An analysis of the data and information in point 5 above and the identification, documentation and recommendations for improvements to existing financial management processes