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ASSESSMENT TWO
COMPLETION OF A WORKBOOK OF BUDGET SPREADSHEETS
Please note that this assessment is due before March 2026 11pm New Zealand Time

This assessment will be marked out of 100 and contributes 15% to the overall coursework markRelationship of Assignment to Learning Outcomes (Refer Course Guide).

L.O.2. Apply generally accepted accounting practices.

Although these are projected statements, they are prepared on the same basis as historical statements. Some of the transactions will help you understand the impact of accounting policies such as depreciation and accrual accounting with the latter especially evident when comparing the Income Statement and Cash Flow Statement.

L.O.4. Apply management accounting techniques to planning and short-term decision making.

As the scenario is set in the future, preparing the assessment should also help with understanding the planning process and the use of tools such as excel to model different scenarios and ascertain their impact on the profit, cash flow and resources of a business.

ASSESSMENT 2 INSTRUCTIONS

How to Approach this Assessment
  • Please read all instructions in this document before starting the assessment.
  • This is an individual assessment. Please read all instructions in this document before starting the assessment.
  • Do not use another person’s instructions. Students are divided into groups, and each group has its own set of instructions with different data sets. If you are found to have used another student’s data, you will be penalised.
  • To complete the assessment, you need access to a computer, and a spreadsheetpackage. The recommended spreadsheet software is Microsoft Excel and the template provided is an Excel one. If you are not familiar with Excel you should work through the tutorials; Excel Tutorial 1, Excel Tutorial 2, and Excel Tutorial 3, provided on Stream, under the Assessment Resources tab. Especially Excel Tutorial 3 for advice on using formulas in Excel.
  • You should first study the relevant material in the text and make sure you understand the concepts covered.
  • Contact a member of the Teaching Team if you have any problems with Microsoft Excel, or with downloading the files from Stream and submitting the assessment on Stream.
Completing the Assessment
Entering Data

You will complete the assessment on an Excel template, which is provided to you. You will find the template with the Assessment 2 booklet under the Assessment section. Use the naming convention Smith88888888.xls (or xlsx) where Smith is your surname and 88888888 is your student ID number. Please note that if you try to modify the excel file without downloading it first, your modifications will NOT be saved. Remember to save to your own computer and to make regular backups.

You must take care in how you prepare your answer. If the following instructions are not followed, you may lose marks:

  • The ‘Data’ sheet is where you enter the input data, typing amounts directly into the relevant cells.
  • The other sheets contain the output of financial and numeric data.
    • On the output sheets, you should only use formulas, as this creates a workbook, which is truly flexible. (Refer to Budget Spreadsheet Completion on the following page).
  • It is important to know that the program operates on named cells contained within the template. The names of these cells must not be altered or relocated. To avoid this DO NOT use the cut and paste function or drag and drop cells from one locationto another. Copying, pasting, and deleting cell contents is acceptable.
  • DO NOT make any changes to the sheets, e.g., add rows or columns.
  • Some outflows and expenses have been pre-entered in the Cash Flow and Income Statement, DO NOT move these to other rows.
  • Contact me, Christelle Roos, if you feel you need to make any changes, and I will advise you.

Budget Spreadsheet Completion

Marks will be awarded for the functionality and flexibility of your spreadsheet. The aim of this assessment is to produce a workbook of spreadsheets in which any changes in financial and numeric data in the Data sheet, will result in an update of the whole workbook, therefore you must link the output with the Data sheet and other output sheets, where applicable. You must not enter numbers directly into the output areas on the other worksheets.

To help you, certain cells have been shaded pink and other blue:

  • Entries of numbers or names from the information given should be entered in pink cells.
  • Entries of formulas should be made in blue cells. The formulas must use cell names to pull data in, e.g., =(A1+B5). Typing =500+250 does not constitute a proper formula.
  • Not all blue or pink shaded cells require entries.
Submission of the Assessment (Uploading your file to Stream)

See the Assessment section on Stream for information about how to submit your assessment, and about policies re extensions and late submissions. Penalties will be applied to late submissions for which an extension has not been granted.

Assessment Queries

Please feel free to keep in touch with the 115.112 team regarding this assessment, preferably through the ‘Course Discussion’ forum. That way all students benefit and often we have found that the best way of learning is through discussion with your peers as well as teaching staff.

Please note that this assessment is at individual, not group level. Discussion is fine but do not post your answers to the assessment on Stream through discussion forums, as that will lead to penalties. If you are uncertain, please contact the teaching staff.

There are many students in this course but that does not mean that you are not each individually very important to us. We value each student and will try to provide appropriate guidance to the best of our ability.

Return of marked assessments and feedback

You will be notified when your marked assessment is available, and it will be located at the same point on Stream where you uploaded your assessment. Note that the normal turnaroundof assessments is 15  normal working days.

Feedback will be provided in the form of suggested solutions and overall comments by the marker.

All the best with your assessment!

The 115.112 Teaching Team4

Assessment Brief

Susan Devlin owns Ice Always, a business which sells portable countertop ice makers. The business is based in Invercargill and sells direct to customers from its shop and online. The following is financial information relating to this business.

Sales related information:

  • Ice Always sold 80 units per month from December 2025 to February 2026.
  • As a result of a planned advertising campaign (see detail in the ‘Other information’ section below), Susan expects that sales will increase to 100 units in March and then by 10 units per month until May 2026, after which they are expected to decrease to 110 units per month.
  • Currently, the ice makers sell for $180 per unit, but the price will be decreased as part of the advertising campaign, to $170. This price will be valid for the advertising campaign period and will then increase to $185.
  • Based on previous months’ actual data, sales are expected to be 30% cash and 70% credit.
  • Credit sales customers pay 80% in the month following the sale and 20% in the month after that.
  • Thirty percent (30%) of the business’ sales are online.
Purchases and Inventories:
  • The ice makers are imported from Indonesia at a cost of $95, which includes all import duties and other costs related to the purchases and importing of the ice makers.
  • These purchases and import costs are paid in cash in the month after the costs are incurred.
  • The price and payment advice are not expected to change in the next six months.
  • To prevent loss of sales due to stock outs, Ice Always has a target ending inventory level of 20% of the next month’s sales in units.
Other information:
  • The business operates from a rented shop in the Invercargill city centre, where the rent is $1,500 per month. Rent is payable on the first day of the month.
  • If the ice makers are sold online, the ice makers are packaged and sent to customers by courier at a cost of $30 each. This cost is carried by Ice Always who has an account with
  • the courier company. Ice makers are deemed to be delivered in the month of sale, and the delivery costs are paid the month following delivery.
  • The business is planning to spend $1,150 per month on an advertising campaign in March and April. This expense will be paid in the month it is incurred.
  • General costs (including utilities, telephone, stationery, internet provider etc.) are estimated at $200 a month, paid on the 20th of the month following the month they are incurred. The general costs incurred for February 2026 amounted to $197.
  • The annual insurance premium is $1,400 and will be paid in full on 1 March.
  • The business purchased a new computer for $1,596 for the shop on 1 January 2026 on credit. The system arrived during February and will be paid for in full, on 1 March 2026.

The new computer is expected to have a useful life of three years and a $300 residual value.

• Susan will take $3,000 a month from the business for her personal use.
• Ice Always has a fixed deposit investment of $12,000. The business earns interest of 3.5% per annum, which is paid into Ice Always’ bank account monthly.
• Cash at Bank as at 1 March 2026, $23,000.Required:
(i) On the Data Input sheet, enter the data as provided in the assessment brief. Some data has been pre-entered. You are only required to complete the missing data in the pink cells. (13 marks)
(ii) On the Sales, Purchases & NCA sheet, complete the Sales Collection budget and Purchases budget for the quarter 1 March to 31 May 2026 by entering formulas in the
blue cells. (35 marks)
(iii) On the Cash Flow Sheet, complete the Cash Flow Budget for each of the three months March, April, and May and the totals for the quarter 1 March to 31 May 2026 by entering formulas in the blue cells and descriptions (revenues or costs) in the pink cells. (18 marks)
(iv) On the Income Statement Sheet, complete the Projected Income Statement for the quarter ended 31 May 2026 by entering formulas in the blue cells and descriptions (revenue or costs) in the pink cells. A month-by-month Income Statement is not required. (14 marks)
(v) Check the flexibility of your workbook by changing the purchase price of the ice makers on the Data Sheet, from $95 to $85. Enter the resulting Net Profit and ending Cash Balance in the pink boxes provided on the Income Statement Sheet. (Remember to ,change the purchase price back to the original amount before submitting your assignment)
(20 marks)
[Total = 100 Marks]