PurposeYou will demonstrate your skills and knowledge by completing a scenario-based project.Task overview and contextYou receive an email from Mike Booth, Managing Director: Financial

Balance sheet worksheet and assumptions

Balance sheet worksheet

Budgeted balance sheet as at 28 February 2016
	2014/15 Actual at 30 June 2015	2015/16 YTD Actual	2015/16 YTD Budget	Variance	2016/17 Budget at 30 June 2017
($ ’000)	($ ’000)	($ ’000)	($ ’000)	($ ’000)
BALANCE SHEET
Cash & bank deposits	53,515	56,039	58,698	-2,659
Receivables	3,520	3,892	3,600	292
Inventories	23,680	32,120	25,600	6,520
Other current assets	2,468	2,698	2,500	198
Total current assets	83,183	94,749	90,398	4,351
Non-current investments	145,698	158,123	152,000	6,123
Plant & equipment	32,000	36,982	38,000	-1,018
Intangible assets	8,900	9,000	9,000
Total non-current assets	186,598	204,105	199,000	5,105
Total assets	269,781	298,854	289,398	9,456
Current liabilities	16,584	19,844	18,500	1,344
Non-current liabilities	897	985	980
Total liabilities	17,481	20,829	19,480	1,349
Net assets	252,300	278,025	269,918	8,107

Total equity	252,300	278,025	269,918	8,107

Extract of balance sheet detail
	2015/16 YTD Actual		2016/17 Budget
($ ’000)		($ ’000)
Current liabilities
Trade creditors		2,330
Net GST payable		2,590
Sundry creditors		740
Unearned revenue
Annual leave provision		5,465
LSL provision < 1 year		3,863
Salaries clearing		3,550
Group tax clearing		66
Superannuation clearing		1,240
TOTAL CURRENT LIABILITIES		19,844
Long service leave > 1 year		985
TOTAL NON CURRENT LIABILITIES		985
TOTAL LIABILITIES		20,829

Assumptions

Balance sheet preparation assumptions:

$18 million capital investment in 5 new stores in Australia from cash reserves
Aim to reduce average inventory level to $20 million except in October, November and December periods where it can reach $40 million
Commencing paying salaries on a monthly basis will increase salaries clearing liability to $5.5 million
Write off bad debts to $0.2 million
Sell 50% of plant and equipment at book value and move to long-term lease agreements
Projected 15% increase in sales will result in similar changes to trade creditor and receivables items in the balance sheet
Increase in the book value of the BizOps brand name from $9 million to $15 million