analysis of cash flow

analysis of cash flow
Question 1 (50 marks)
The following table is an analysis of cash flow for a proposed surveying firm. The surveyor has made several assumptions in order to prepare the analysis in a spreadsheet.
It is proposed to commence trading in January 2015.
The estimated value of work increases slowly from January until May when it becomes constant. Fixed costs are constant for each month. Variable costs are as shown as a percentage of the Value of Work Performed.
The surveyor has an initial amount of \$15,000 for use as cash on hand.
Assume the surveyor uses the cash-based accounting system and that GST payments/refunds will be made to the Australian Taxation Office (ATO) at the end of (rather than on 21st of) October, January, April and July. (For simplicity assume that calculations of GST are for the end of those Months.)
Assume there is a 10% GST Input Tax Credit claimable on all fixed and variable costs.
Assume there is a 10% GST payable on all receipts for work performed.
a. Use a spreadsheet to prepare a table similar to the following example (the table has been provided to allow you to confirm your calculations and is an example only, the estimated value of work performed and initial amount will not be as per the assignment requirements). Some cells (eg Fixed Costs) are constant values only. The remaining cells are calculated from formula using the constant cells and the percentages shown in the cells above the table. The remaining questions require changes to those cells which must then recalculate the amounts in the Cash on Hand column, using the data above.
(5 marks)

b. Suppose the values in the Estimated Value of Work Performed column were as follows. What would be the resultant amounts in the Cash on Hand column? Comment on this. These values are to be used for the rest of the question parts.
(4 + 6 marks)
Estimated value of work performed
Dec-14
Jan-15 \$3,000
Feb-15 \$5,500
Mar-15 \$6,500
Apr-15 \$7,000
May-15 \$7,000
Jun-15 \$7,000
Jul-15 \$11,000
Aug-15 \$15,000
Sep-15 \$17,000
Oct-15 \$14,000
Nov-15 \$12,000
Dec-15 \$11,000
Jan-16
Feb-16
c. Suppose the values in the Estimated Value of Work Performed column stayed the same as in (b) but greater effort was made to invoice earlier. (See table below.) What would the resultant amounts in the Cash on Hand column? Comment on this.
(4 + 6 marks)
Suppose the values in the Estimated Value of Work Performed column stayed the same as in (b) but a greater effort was made to invoice earlier. i.e.
75% of work performed will be invoiced in the same month
20% of work performed will be invoiced in the following month
5% of work performed will be invoiced 2 months later
100%

50% of accounts due at the end of the month will be paid
25% of accounts dsue at the end of the month will be paid by the end of the following month
20% of accounts due at the end of the month will be paid 2 months later
5% of accounts will never be paid
100%

25% of Value of Work equals the Variable Costs and is paid at the end of the month of use
d. Suppose the values in the Estimated Value of Work Performed column stayed the same as in (b) but greater effort was made to collect accounts earlier. (See table below.) What would the resultant amounts in the Cash on Hand column? Comment on this.
(4 + 6 marks)
Suppose the values in the Estimated Value of Work Performed column stayed the same as in (b) but a greater effort was made to collect accounts earlier. i.e.
50% of work performed will be invoiced in the same month
25% of work performed will be invoiced in the following month
25% of work performed will be invoiced 2 months later
100%

75% of accounts due at the end of the month will be paid
15% of accounts due at the end of the month will be paid by the end of the following month
5% of accounts due at the end of the month will be paid 2 months later
5% of accounts will never be paid
100%

25% of Value of Work equals the Variable Costs and is paid at the end of the month of use
e. Suppose the values in the Estimated Value of Work Performed column stayed the same as in (b) but greater effort was made to invoice earlier and greater effort was made to collect accounts earlier. (See table below.) What would the resultant amounts in the Cash on Hand column? Comment on this. Calculate the firm’s break-even point in terms of gross fees.
(4 + 6 + 5 marks)
Suppose the values in the Estimated Value of Work Performed column stayed the same as in (b) but a greater effort was made to invoice earlier and a greater effort was made to collect accounts earlier. i.e.
75% of work performed will be invoiced in the same month
20% of work performed will be invoiced in the following month
5% of work performed will be invoiced 2 months later
100%

75% of accounts due at the end of the month will be paid
15% of accounts due at the end of the month will be paid by the end of the following month
5% of accounts due at the end of the month will be paid
5% of accounts will never be paid
100%

25% of Value of Work equals the Variable Costs and is paid at the end of the month of use
Question 2 (80 marks)
This question deals with how NPV can be used to help decide between different projects. Assume that the discount rate is 6% and ignore the effect of inflation on costs and revenue.
Suppose that a client has requested your assistance in helping to decide which of two development schedules should be adopted with a view to developing a parcel of land into residential lots for sale.
The Parcel can be purchased for \$700,000 right now plus \$150,000 per year for 6 years. You estimate that the land can be subdivided into 90 residential allotments. Your client wants to develop the land for sale in 9 equal stages (Years 1 to 9), i.e. one stage each year for the next 9 years. You further estimate that the development costs will be approximately \$67,000 per allotment. You estimate it will take one year to have the lots ready for release. The real estate agent advises that all lots for each stage will be sold in the year following release (Years 2 to 10) and advises that the lots will sell for \$120,000 for Years 2 to 5 and \$140,000 for Years 6 to 10.
The Parcel can be purchased outright for \$1,500,000 right now. You have already estimated that the land can be subdivided into 90 residential lots. Your client wants to release the land for sale for all lots in one stage, as soon as possible (Year 1). You further calculate that the development costs will be approximately \$65,000 per allotment in one stage for Year 1, having allowed one year for the lots to be ready for release. The real estate agent is confident that 30 lots will be sold in the year following release (Year 2) and 20 lots will be sold each year after that (Years 3 to 5) and advises that the lots will sell for \$120,000.
a. Create a 10 year DCF and a 5 year DCF respectively for the two development schedules.(30 marks)
b. Assess and discuss the two projects on a financial basis and the advice you would give your client regarding both projects with particular emphasis on feasibility, risks, profit and return, costs and funding? (30 marks)
c. Discuss and describe the warnings you would place on your information and advice? (20 marks)
Question 3 (70 marks)
Given the information in the following table, you are required to:
a. Draw the work flow network (CPM network diagram). You should use the ‘Activity-on-Node’ method. (10 marks)
b. Calculate the critical path and project completion time. (10 marks)
c. Prepare a resource loading diagram for the resource ‘Surveyor’. Assume that all non-critical activities start at their ES times. (10 marks)
d. Smooth the resource ‘Surveyor’without changing the critical path or the expected completion time, and without splitting activities and resources. (15 marks)
e. Comment on the effect of your changes in (d). (5 marks)
f. Assume the resource ‘Surveyor’ is limited to 4. Comment on the effect this has on the critical path and project completion time? (without splitting activities or resources) Demonstrate your answer with the appropriate calculations. (15 marks)
g. Discuss alternative actions available to complete the project in the shortest possible time if your firm was limited to only 4 Surveyors on staff. (Assume the client wants the project completed as per the original critical path) (5 marks)
Activity Time duration (days) Immediate predecessor Resource‘Surveyor’
1 – Start 0
2 3 1 2
3 3 1 1
4 2 1 1
5 4 2, 3 2
6 8 4 2
7 1 5, 8 1
8 10 6 3
9 3 7 1
10 7 6 3
11 3 10 2
12 4 9 1
13 3 11, 12 1
14 1 13 2
15 3 11 3
16-End 0 15, 14
Question 4 (50 marks)
The following Gantt bar chart depicts project activities with the critical path activities at the top of the chart:

The following table shows the units of resources used for each activity.

The following table shows unit costs for each resource.
Weekly cost of resources
1
2
3 \$8,000
\$5,000
\$4,000

You are required to calculate the activity costs in dollars per week, the total activity cost, earned value and planned value from the information given. The reporting date is week 6. (10 marks)
It is estimated that the percentage of each activity completed to this date is as follows:
Activity At week
6
A
B
C
D
E
F
G
H
I
J
K
L 100%
100%
100%
100%
100%
80%
70%
60%
0%
0%
0%
0%
Actual expenditure on the project to date = \$360 000
You should analyse the results and give an opinion as to the health of this project. (20 marks)
Your answer should include forecasts about the project including the final expected project cost at completion. (20 marks)
Question 5 (50 marks)
You are required to calculate the charge–out rate for a survey party which includes both the surveyor and surveyor’s assistant. The base salary for the surveyor is \$60,000 and the surveyors assistant is \$40,000. The standard working days are 7.5 hours per day for 5 days per week for 52 weeks per year with a provision of 45 days as non-working days (leave, public holidays, sickness etc.). The profit factor is one third of the gross fees or one half of the total costs of employment. Calculate the survey party charge rate per hour.
The costs attached to the surveyor and surveyors assistant are as follows:
Description % of salary surveyor % of salary surveyor’s assistant
Base salary 100 100
Direct Salary on-costs
Public holidays and sick leave 9.3 9.3
Long service leave 2.6 2.6
Payroll tax 4.75 4.75
Work cover insurance 1.303 1.303
Superannuation 9 9

Indirect costs
Non-chargeable salaries (support staff) 15.25 13.13
Proposals 5 0
Non-chargeable/non-productive time 10 15
CPD 5 5

Vehicle running expenses 10 10
Premises, vehicle, office and survey equipment 35 35
Consumables 10 10
Depreciation of vehicle, office and survey equipment 10 10

Question 6 (50 marks)
The following financial transactions have occurred for the Spatialisation Company (SC). Compile ledger entries and calculate a trial balance for the following accounts:
Transaction #1: On April 1, 2015, SC starts a survey practice by your capital injection of \$100,000 for shares in the company.
Transaction #2: On April 2, 2015 the business acquired a \$120,000 bank loan liability (Loans Payable).
Transaction #3: On April 2 , 2015, SC paid business registration and licensing fees for the business, \$500 by cheque.
Transaction #4: On April 5, 2015, the business acquired office equipment to a total of \$13,000. The entire amount was paid in cash.
Transaction #5: On April 6, 2015, the business acquired surveying equipment at \$76,000. The business paid a 50% down payment and the balance will be paid after 60 days. Note this will result in a split journal entry.
Transaction #6: Also on April 6, 2015, SC purchased supplies ‘on account’ amounting to \$1,500.
Transaction #7: On April 9, 2015, the business received \$2,000 cash for services rendered.
Transaction #8: On April 10, 2015, the business invoiced a client for services rendered, \$1,500 on an account settlement date of 30 days.
Transaction #9: On April 11, 2015, the business invoiced a client for services rendered, \$3,500 on an account settlement date of 30 days.
Transaction #10: On April 11, the business paid some of its liability in transaction #6 by issuing a cheque. The business paid \$500 of the \$1,500 balance. The balance of theaccounts payable in transaction number #6 would now be \$1,000 credit (\$1,500 initial credit and a \$500 debit).
Transaction # 11: On April 12, the business paid rent for April, \$2,500.
Transaction #12: On April 12, the business paid salaries to its employees, \$4,500.
Ledger names as follows:
Cash
Capital
Loans payable
Accounts payable
Accounts receivable
Service revenue
Surveying supplies
Surveying equipment
Office equipment
Rent expense
Salaries expense
Fees and licences
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT 🙂

Unlike most other websites we deliver what we promise;

• Our Support Staff are online 24/7
• Our Writers are available 24/7
• Most Urgent order is delivered with 6 Hrs
• 100% Original Assignment Plagiarism report can be sent to you upon request.

GET 15 % DISCOUNT TODAY use the discount code PAPER15 at the order form.

 Type of paper Academic level Subject area Essay Term Paper Research Paper Coursework Book Report Book Review Movie Review Dissertation Thesis Thesis Proposal Research Proposal Dissertation Chapter - Abstract Dissertation Chapter - Introduction Chapter Dissertation Chapter - Literature Review Dissertation Chapter - Methodology Dissertation Chapter - Results Dissertation Chapter - Discussion Dissertation Services - Editing Dissertation Services - Proofreading Formatting Admission Services - Admission Essay Admission Services - Scholarship Essay Admission Services - Personal Statement Admission Services - Editing Editing Proofreading Case Study Lab Report Speech Presentation Math Problem Article Article Critique Annotated Bibliography Reaction Paper PowerPoint Presentation Statistics Project Multiple Choice Questions (None-Time-Framed) Other (Not listed) High School Undergraduate Master Ph. D. Art   Architecture   Dance   Design Analysis   Drama   Movies   Music   Paintings   Theatre Biology Business Chemistry Communications and Media   Advertising   Communication Strategies   Journalism   Public Relations Creative writing Economics   Accounting   Case Study   Company Analysis   E-Commerce   Finance   Investment   Logistics   Trade Education   Application Essay   Education Theories   Pedagogy   Teacher's Career Engineering English Ethics History   African-American Studies   American History   Asian Studies   Canadian Studies   East European Studies   Holocaust   Latin-American Studies   Native-American Studies   West European Studies Law   Criminology   Legal Issues Linguistics Literature   American Literature   Antique Literature   Asian Literature   English Literature   Shakespeare Studies Management Marketing Mathematics Medicine and Health   Alternative Medicine   Healthcare   Nursing   Nutrition   Pharmacology   Sport Nature   Agricultural Studies   Anthropology   Astronomy   Environmental Issues   Geography   Geology Philosophy Physics Political Science Psychology Religion and Theology Sociology Technology   Aeronautics   Aviation   Computer Science   Internet   IT Management   Web Design Tourism Number of pages Paper urgency Cost per page: 1 pages/275 words 2 pages/550 words 3 pages/825 words 4 pages/1100 words 5 pages/1375 words 6 pages/1650 words 7 pages/1925 words 8 pages/2200 words 9 pages/2475 words 10 pages/2750 words 11 pages/3025 words 12 pages/3300 words 13 pages/3575 words 14 pages/3850 words 15 pages/4125 words 16 pages/4400 words 17 pages/4675 words 18 pages/4950 words 19 pages/5225 words 20 pages/5500 words 21 pages/5775 words 22 pages/6050 words 23 pages/6325 words 24 pages/6600 words 25 pages/6875 words 26 pages/7150 words 27 pages/7425 words 28 pages/7700 words 29 pages/7975 words 30 pages/8250 words 31 pages/8525 words 32 pages/8800 words 33 pages/9075 words 34 pages/9350 words 35 pages/9625 words 36 pages/9900 words 37 pages/10175 words 38 pages/10450 words 39 pages/10725 words 40 pages/11000 words 41 pages/11275 words 42 pages/11550 words 43 pages/11825 words 44 pages/12100 words 45 pages/12375 words 46 pages/12650 words 47 pages/12925 words 48 pages/13200 words 49 pages/13475 words 50 pages/13750 words 51 pages/14025 words 52 pages/14300 words 53 pages/14575 words 54 pages/14850 words 55 pages/15125 words 56 pages/15400 words 57 pages/15675 words 58 pages/15950 words 59 pages/16225 words 60 pages/16500 words 61 pages/16775 words 62 pages/17050 words 63 pages/17325 words 64 pages/17600 words 65 pages/17875 words 66 pages/18150 words 67 pages/18425 words 68 pages/18700 words 69 pages/18975 words 70 pages/19250 words 71 pages/19525 words 72 pages/19800 words 73 pages/20075 words 74 pages/20350 words 75 pages/20625 words 76 pages/20900 words 77 pages/21175 words 78 pages/21450 words 79 pages/21725 words 80 pages/22000 words 81 pages/22275 words 82 pages/22550 words 83 pages/22825 words 84 pages/23100 words 85 pages/23375 words 86 pages/23650 words 87 pages/23925 words 88 pages/24200 words 89 pages/24475 words 90 pages/24750 words 91 pages/25025 words 92 pages/25300 words 93 pages/25575 words 94 pages/25850 words 95 pages/26125 words 96 pages/26400 words 97 pages/26675 words 98 pages/26950 words 99 pages/27225 words 100 pages/27500 words 101 pages/27775 words 102 pages/28050 words 103 pages/28325 words 104 pages/28600 words 105 pages/28875 words 106 pages/29150 words 107 pages/29425 words 108 pages/29700 words 109 pages/29975 words 110 pages/30250 words 111 pages/30525 words 112 pages/30800 words 113 pages/31075 words 114 pages/31350 words 115 pages/31625 words 116 pages/31900 words 117 pages/32175 words 118 pages/32450 words 119 pages/32725 words 120 pages/33000 words 121 pages/33275 words 122 pages/33550 words 123 pages/33825 words 124 pages/34100 words 125 pages/34375 words 126 pages/34650 words 127 pages/34925 words 128 pages/35200 words 129 pages/35475 words 130 pages/35750 words 131 pages/36025 words 132 pages/36300 words 133 pages/36575 words 134 pages/36850 words 135 pages/37125 words 136 pages/37400 words 137 pages/37675 words 138 pages/37950 words 139 pages/38225 words 140 pages/38500 words 141 pages/38775 words 142 pages/39050 words 143 pages/39325 words 144 pages/39600 words 145 pages/39875 words 146 pages/40150 words 147 pages/40425 words 148 pages/40700 words 149 pages/40975 words 150 pages/41250 words 151 pages/41525 words 152 pages/41800 words 153 pages/42075 words 154 pages/42350 words 155 pages/42625 words 156 pages/42900 words 157 pages/43175 words 158 pages/43450 words 159 pages/43725 words 160 pages/44000 words 161 pages/44275 words 162 pages/44550 words 163 pages/44825 words 164 pages/45100 words 165 pages/45375 words 166 pages/45650 words 167 pages/45925 words 168 pages/46200 words 169 pages/46475 words 170 pages/46750 words 171 pages/47025 words 172 pages/47300 words 173 pages/47575 words 174 pages/47850 words 175 pages/48125 words 176 pages/48400 words 177 pages/48675 words 178 pages/48950 words 179 pages/49225 words 180 pages/49500 words 181 pages/49775 words 182 pages/50050 words 183 pages/50325 words 184 pages/50600 words 185 pages/50875 words 186 pages/51150 words 187 pages/51425 words 188 pages/51700 words 189 pages/51975 words 190 pages/52250 words 191 pages/52525 words 192 pages/52800 words 193 pages/53075 words 194 pages/53350 words 195 pages/53625 words 196 pages/53900 words 197 pages/54175 words 198 pages/54450 words 199 pages/54725 words 200 pages/55000 words 30 days 6 hours 12 hours 24 hours 48 hours 3 days 4 days 5 days 7 days 10 days 20 days USD GBP CAD AUD EUR  Total: