Accounting Case Study Assignment 题目代写
UNIVERSITY OF TECHNOLOGY, SYDNEY -School of Accounting
22567 Planning and Control for Small Business Enterprises
Spring Semester 2014
Case Study Assignment
OUTLINE OF CASE STUDY:
Our guest speaker, Mary K, opened the doors to her small business enterprise on the 18th July
2014 in Sydney, NSW. Her business is named “The Hills Learning Centre” and focuses on
assisting children from the age of 4 years to 18 years with learning difficulties.
Mary shared her real life experiences during the lecture and this case study will be based on her
business however, financial data is not actual and has only been created for the purposes of this
Assume that you are a practicing accountant and that Mary has not yet set up her business.
She has approached you for advice. While Mary has a passion to provide educational support for
children, she needs guidance and support in setting up her business and is paying for your
services. She is a new client of your business.
This case study will cover the following areas of SBE.
Considerations in Setting Up a New SBE
Planning for Growth
Planning for Retirement
SECTION 1: CONSIDERATIONS IN SETTING UP A NEW SBE – REPORT EXTRACT
Required: You will provide Mary with a written report to help you explain aspects of setting up
a new small business.
Information to be included in your report will include the following but must be specific to the
type of business that Mary is setting up.
a) Description of the business.
b) Targeted customer/s
c) Current issues that may affect Mary’s business
d) Discuss what should be considered when looking for a location for the learning centre
e) A SWOT analysis, including her competitive advantage
f) A marketing analysis – Discuss methods of advertising & promotion, frequency of
g) Costing process – Discuss how she will charge for service/s
h) E-Business considerations – Promotion online, website registration required, suitable
methods of receiving payments, security, webinars
i) Business structure consideration for her situation
j) Insurances – Mandatory and optional
k) Legal requirements
l) Labour obligations, requirements to consider should she decided to hire staff. You will
provide Mary with a link to the Fair Work Website.
m) Record keeping and compliance – BAS, PAYG, GST and who would be responsible
n) Aware of Mary’s environmental friendliness, list some aspects of environmental
o) Develop a set of key performance indicators for this business upon startup
SECTION 2: FINANCIAL PREPARATION & ANALYSIS - BUDGETING (15 marks)
Starting a new business is not easy and financial preparation and analysis is necessary.
Mary has read that a large proportion of new small business enterprises in Australia fail in the
first few months of operations. Lack of planning, little knowledge of business costs and the
associated lack of cash flows are the most cited reasons of failure.
Mary approaches you for further assistance. She wants to learn about the process of operational
planning by understanding the true costs of her business, in particular, labour costs, fixed and
a) Labour Budgets
Mary has decided not to pay herself a wage until her business has operated for at least six
months. Meanwhile, she will fund her living expenses from her savings.
However, in January next year she will employ a friend who is a university student (born 30
June 1995) as a part time assistant receptionist.
The employee has no experience and will be taught by Mary on the job. Responsibilities will
include the following:-
× Basic office procedure, such as, tidying reception area
× Operating office equipment (photocopier, phones)
× Filing correspondence and documents
× Answering enquiries (phone and in reception area) using a general knowledge of
The Assistant receptionist will work 3 times a week from 3pm to 6pm Mondays, Tuesdays
and Wednesdays. Mary’s office will be closed each year from the 15th December to the 15th
Required: You will prepare a monthly labour budget for 12 months from 5th January 2015 to
the end June 2017. Note that the employee’s age may affect the pay rate.
b) Revenue and Cost Budgets
Required: For the period from July 2014 to June 2015, you are required to:-
i. Prepare monthly and annual budgeted Profit and Loss statement
ii. Calculate the gross margin on fees revenue (sales revenue) required to achieve
a net profit equal to 7% of gross revenue.
iii. Prepare a monthly cash flow budget. This will assist Mary in keeping a record
of the frequency of business costs.
iv. Calculate the minimum revenue to break even.
(Budgeting Information will be available on UTS online – Worksheet Budgets)
c) Report explanation
Required: Provide a one page report to Mary explaining how you determined the
budgeted figures and how the business is expected to perform.
SECTION 3: FINANCIAL PREPARATION & ANALYSIS - FORECASTING (10
Mary’s Learning Centre has been operating successfully over the last 3 years. It is now 1/7/2017.
She now wishes to expand her business by acquiring more space and employing graduate
students on a part time basis.
Required: Prepare a forecast of the business’s revenue (use the information provided on UTS
Online - Worksheet Forecast).
a. Estimate a forecast of revenue for the period from 1/7/2017 to 30/6/2018 using
regression analysis techniques.
b. Discuss the reliability of forecasting using methods, such as regression analysis.
What other factors should be included in a forecast analysis? What specific factors
would be relevant to Mary’s business?
SECTION 4: FINANCIAL PREPARATION & ANALYSIS – FINANCE OPTIONS (10
Mary has now made appointment to see you. Her successful business over the last 3 years has
made her consider expanding the learning centre. Her plans include the following:-
Mary will be more as a consultant by performing only the assessments and consultation
process for her students.
Mary will hire graduated students on a permanent part time basis to follow her
educational plans that she has prepared for each student.
Mary has developed a communication strategy that will ensure her staff will accurately
follow her plans for each student (client). This frees Mary to perform other activities for
Mary has approached the body corporate of the building and asked if she could take the
office next to hers. They have agreed and have also allowed her to make renovations to
combine the two offices.
The costs to expand are as follows:-
1. $35,000 one off cost: Based on 3 quotes from building companies for renovating
the next door office so as to make one learning centre.
2. $2000 per month: This is the additional rental increase of rent payable per month.
3. $55,000 per year: Permanent part time graduates will cost Mary approx.
(inclusive of superannuation) a total of $55,000 per year. Calculated as $50 per
hour for each employee inclusive of superannuation.
These plans require funding. Mary no longer uses money from her savings for business
Required: Discuss the financial options available for Mary in obtaining finance for each
of the three costs. You may need to research bank loans, available grants, venture capital,
angel investors or other opportunities.
You will need to mention the advantages and disadvantages for each option available for
SECTION FIVE - FINANCIAL PREPARATION & ANALYSIS – OBTAINING
FINANCE (10 MARKS)
Mary has decided to obtain finance from a financial institution. You will assist her in preparing a
finance proposal. You are to include qualitative and financial information in the proposal,
Description of funds required (purpose and value)
Potential benefits to the business of the expansion
Ownership and management of the business
A background/history of the business
Current and future data analysis including the Profit and Loss Budget and Cash
Completed financial application forms of the lender
SECTION SIX – RETIREMENT (5 MARKS)
Although Mary has enjoyed operating her own business, she now wants to reconsider her future.
She is thinking about either taking a break from her business, semi-retire or leave the business.
Discuss the options available for Mary.
SUBMISSION REQUIREMENTS AND DUE DATE:
Assignment: A full printout of your assignment must be submitted to your lecturer
Excel workings: Ensure you include a full print out of your worksheets and submit a copy
(via email to your lecturer) of your Excel files as well.
Turn-it-in: Before handing in the assignment you must submit the final version to the turn-it-
in program available on UTS Online. Also ensure you print a copy of your Turn-it-in similarity
report and include with your assignment.
Due Date: Due in class Friday 6th November 2014, Week 15