FNSACC501 Provide Financial and Business Performance Information

Assessment Task 2: Written Report and Finance Plan

Overview

This assessment task is worth 40% of the overall assessment for this unit.

• Due date: Week 10
• Length: 2500–3000 words (maximum)
• Similarity index: 30% (maximum)
• Assessment type: Individual written report and finance plan

Student Declaration

I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.

General Instructions

This is not a group assignment. Your report must be your own work. The assignment is to be submitted via the TAFE Queensland Learning Management System: Connect. Refer to your text and learning resources for the format of the Report. You must use correct grammar, punctuation and appropriate professional language.

Assessment Criteria

To achieve a satisfactory result, your assessor will be looking for your ability to satisfactorily answer each question listed in the assessment requirements below. You will receive up to two attempts at this assessment task. Should your first attempt be unsatisfactory, your teacher will provide feedback and discuss the relevant sections with you and will arrange a due date for the submission of your second attempt.

Submission Details

Insert your details on the cover page and sign the Student Declaration. Include this template with your submission. Assessment is to be submitted via:

• TAFE Queensland Learning Management System: Connect
• Username: 10 digit student number

Case Study Background

Cindy Dane has come to you after purchasing a mobile slushy machine business on 1 September 2024. The business cost $100,000 and was financed 50% owner capital and 50% bank loan at 6% interest over 15 years.

Cindy has provided you with a Profit and Loss Statement and Balance Sheet for the last two years of the business’ trading.

The business currently has one old van used to deliver the slushy machines. Cindy expects she will need to spend approximately $5,000 on maintenance and repairs of this vehicle over the next 12 months. Cindy would like to upgrade the van and expand the business by acquiring another vehicle and 4 more slushy machines.

Cindy is not sure whether to keep the existing van or either purchase a new van, lease a new van or obtain a second-hand van.

Cindy also wants advice regarding options of which slushy machines to acquire and whether to lease or buy (new or second-hand) extra slushy machines.

Cindy has worked in other people’s small business for the past few years and has decided to take this step of owning a small business as she wants to be able to take time off work in 5 years. She wants to grow this business so that it generates $150,000 dividends for herself by that time. She also wants to ensure the business is stable and efficient so she can be confident that it will run with a minimum of her time required while she is not actively working in the business. Cindy likes the flexibility of a mobile business where she will not need to rent office space as administration tasks can be done in her home office.

Assessment Requirements

Your client needs comprehensive financial and business advice. Prepare a Written Report and Finance Plan that addresses the following:

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1. Business Structure and Compliance AdviceProvide advice on the recommended business structure for Cindy’s expansion plans. Base your response on recommending a small proprietary company. Outline the relevant legislation she must comply with, identify key business risks and recommend strategies to reduce these risks.
2. Capital Budgeting and Financing AnalysisAssist Cindy with her Capital Budgeting and Financing options, showing relevant calculations to support your answer (including WACC). You must include research about different asset acquisition options, different finance options and their costs and effect on cash flow.
3. Budgeted Financial StatementsPrepare a budgeted profit and loss statement, budgeted balance sheet and budgeted cash flow statement based on the past 2 years financials provided and your capital budgeting and finance options.
4. Financial Analysis and EvaluationAnalyse and evaluate, using financial analysis techniques, the prior year and budgeted financial statements. Use relevant calculations with specific regard to your client’s objectives and profitability, efficiency and stability. Recommend how these can be improved.
5. Written Report and Finance PlanPrepare a professional Written Report and Finance Plan which includes all of the above. Refer to your textbook and class notes for the Written Report and Finance Plan outline.
6. BibliographyInclude a bibliography showing all texts and websites which you use in your research and report. Use Harvard or APA referencing style.
7. Draft Submissions and Client CommunicationAt two points during the course of the assessment (Draft 1 due Week 4 and Draft 2 due Week 7) you are required to submit a draft to the Connect Dropbox, including a simulated email requesting client feedback and checking progress against agreed criteria.

Marking Criteria

Business structure advice and compliance	15 marks
Capital budgeting calculations and financing options	20 marks
Budgeted financial statements preparation	20 marks
Financial analysis techniques and evaluation	20 marks
Written report quality and finance plan presentation	15 marks
Referencing, draft submissions and client communication	10 marks
Total	100 marks (scaled to 40% of unit assessment)

Additional Information

• All calculations must be shown in an appendix or within the body of the report.
• Assumptions made in preparing budgets must be clearly stated and justified.
• Research on asset acquisition and finance options must include at least three different sources.
• Financial analysis must include ratio analysis covering profitability, efficiency and stability.
• Late submission penalties apply as per TAFE Queensland Student Rules.
• Plagiarism is a serious offence. All sources must be properly referenced.

Sample Report Excerpts and Writing Guidance

Proprietary Company Structure and Compliance Obligations

Cindy Dane should operate her expanding slushy machine enterprise as a proprietary limited company because this structure limits personal liability while accommodating her growth ambitions and dividend objectives. The Corporations Act 2001 requires every proprietary company to maintain accurate financial records and notify ASIC of changes to directors or registered office within 28 days; Cindy must also obtain an Australian Business Number and register for GST if turnover exceeds $75,000. Recent ASIC enforcement activity in 2025 demonstrates that late lodgement of financial reports now attracts substantial infringement notices, so Cindy must establish disciplined compliance processes from inception. As a small proprietary company she will initially be exempt from audited financial report lodgement unless she crosses two of three thresholds: $50 million revenue, $25 million gross assets or 100 employees; however she should still prepare internal financial reports to monitor progress toward her $150,000 dividend target. Directors owe statutory duties of care and diligence under the Corporations Act, which means Cindy must avoid insolvent trading and maintain proper books even while operating from her home office. Risk mitigation strategies should include comprehensive business insurance for mobile equipment, formal contracts for all machine hires and a documented vehicle maintenance schedule to reduce operational downtime.

Capital Budgeting Calculations for Expansion Assets

The capital budgeting analysis for Cindy’s van and machine acquisition must compare purchase, lease and second-hand options using net present value and internal rate of return calculations discounted at the weighted average cost of capital. Her current capital structure is 50% equity and 50% debt at 6% interest, which produces a WACC around 6% assuming a modest cost of equity; this rate should be used to evaluate whether the projected cash flows from four additional machines justify the $5,000 immediate van repair outlay versus replacement. Research by Nunden et al. (2022) on SME capital budgeting practices confirms that small business owners often neglect formal evaluation techniques, yet structured analysis significantly improves investment outcomes and cash flow predictability. Cindy should prepare a spreadsheet that models each scenario:
i. Purchase new van and machines with bank finance, claiming instant asset write-off and depreciation deductions;
ii. Lease new equipment preserving working capital but forgoing ownership benefits;
iii. Acquire second-hand assets at lower upfront cost with higher maintenance risk.
Each option affects her budgeted cash flow differently; leasing reduces initial outlay but creates fixed obligations, while purchasing generates tax shields through depreciation yet strains liquidity. The analysis must explicitly show how each alternative impacts her ability to extract $150,000 dividends within five years while maintaining solvency.

Financial Ratio Analysis and Performance Benchmarks

Students frequently misunderstand that budgeted financial statements are merely forward-looking guesses rather than rigorously tested plans anchored to historical performance and realistic assumptions. Cindy’s prior year financials provide the baseline for ratio analysis; she should calculate net profit margin, return on equity, current ratio, debt-to-equity and asset turnover to compare historical performance against budgeted outcomes and industry benchmarks for mobile food and beverage services. According to the CFA Institute, financial analysis techniques require examining multiple ratio categories simultaneously because profitability alone masks liquidity risk; a mobile business with high ROE but low current ratio may struggle to fund van repairs or machine replacements when cash is tied in receivables. The budgeted statements should reflect improved efficiency through higher asset turnover from additional machines and controlled debt levels that keep interest coverage above three times. Recommendations must be specific rather than generic; instead of simply suggesting she reduce costs, identify that negotiating bulk syrup purchases or implementing seasonal pricing could lift gross margin by two percentage points. The report should present prior year ratios alongside budgeted ratios in a clear table, explain variances and link each recommendation directly to Cindy’s stated objectives of stability, efficiency and passive income generation within five years.

References

Acclime Australia. (2026). Setting up a proprietary company in Australia. https://australia.acclime.com/guides/proprietary-company-setup/

Australian Securities and Investments Commission. (2025). ASIC compliance for Australian companies. https://quillio.au/compliance/asic-compliance-au

CFA Institute. (2026). Financial analysis techniques. CFA Institute Refresher Readings. https://www.cfainstitute.org/insights/professional-learning/refresher-readings/2026/financial-analysis-techniques

Nunden, N., Abbana, S., Marimuthu, F., & Sentoo, N. (2022). An assessment of management skills on capital budgeting planning and practices: Evidence from the small and medium enterprise sector. Cogent Business & Management, 9(1), 2136481. https://doi.org/10.1080/23311975.2022.2136481

Peel, M. J., & Bridge, J. (1998). How planning and capital budgeting improve SME performance. Long Range Planning, 31(6), 848–856. https://doi.org/10.1016/S0024-6301(98)00079-0

Compose a 2500–3000 word Written Report and Finance Plan for FNSACC501. This individual assessment requires capital budgeting calculations, WACC analysis, budgeted financial statements and ratio evaluation for a mobile slushy machine business expansion.

Write an 8- to 10-page finance plan and business structure report for a small proprietary company. This FNSACC501 assessment covers compliance obligations, asset acquisition options and financial analysis techniques.

FNSACC501 Assessment Task 2: Written Report and Finance Plan. Individual task worth 40%. Due week 10. Prepare business advice, capital budgets, budgeted statements and financial ratios for client Cindy Dane.

 Assessment

Week 12: Oral Presentation and Client Meeting Simulation

Assessment type: Individual oral presentation

Weight: 20% of total unit assessment

Duration: 15 minutes presentation plus 5 minutes questioning

Description: Students present key findings from their Week 10 Written Report and Finance Plan to a simulated client panel. The presentation must explain the recommended business structure, justify the selected capital budgeting option and summarise the budgeted financial outcomes using clear visual aids. Students must demonstrate professional communication skills, respond to client questions about risk mitigation and defend their financial assumptions. Assessment criteria include clarity of explanation, professional demeanour, visual aid quality and ability to adapt advice based on client feedback.

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