## Assessment Instructions

## Unit: FNSACC303A: Perform Financial Calculations

## Assessment 1

## Assessment mode: written assessment

FNSACC303A: Assessment 1

## Instructions:

To complete this assessment you will be required to use a number of resources including a hand held calculator, Excel and online special purpose calculators. There is also a workbook you can reference to provide you with an understanding of how to perform the financial calculations required in this assessment.

There are 13 questions you need to complete for this assessment. There are 3 Sheets in the Answer Sheet and all 3 sheets need to be completed.

You need to:

1. Open the Answer Sheet for Assessment 1,

2. Copy it

3. Save it

4. Name your file with your surname/family name followed by Assn1_FNSACC303A. Put your surname at the start of the file name e.g. SMITHAssn1_FNSACC303A.

5. Type your surname and first name in the box on the first page of Answer Sheet Assessment 1.

6. Enter your answers and show your workings out.

7. When you have completed the assessment you need to upload your file to Sakai for marking.

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Assessment 1, FNSACC303A Version 1, 2015 Last revised 27 January 2015

## Task 1 – Workplace Calculations

#### Note – it is essential for this assessment to show all workings.

#### Question 1 (6 marks)

**Personal tax rates for 2014-15.**

These rates do not include the Medicare Levy of 2%.

Taxable income /**Tax on this income**

0 – $18,200 / Nil

$18,201 – $37,000 / 19c for each $1 over $18,200

$37,001 – $80,000 / $3,572 plus 32.5c for each $1 over $37,000

$80,001 – $180,000 / $17,547 plus 37c for each $1 over $80,000

$180,001 and over / $54,547 plus 45c for each $1 over $180,000

Use the Personal Tax rates above for 2014-2015 (which excludes the Medicare Levy) to calculate the Personal income tax payable on the following amounts – workings must be shown.

a. $16,550

b. $48,896

c. $82,500

#### Question 2 (2 marks)

What would the Medicare Levy be on a Taxable income of $48,896? (calculation to be shown)

#### Question 3 - GST (4 marks)

a. Calculate the GST that will apply to a product costing $48,500 ex GST.

b. If an item with a value of $15,950 includes GST, what is the value of GST?

#### Question 4 - Mark up (8 marks)

a. If an article has a net (or cost) price of $25 and the mark up is 22.5% on net price, what is the marked up price on the article? (Ignore GST on this question). Round to nearest 5c.

b. A product has a net (or cost) price of $85 and is sold for $125. Find the mark-up in whole dollars. Ignore GST.

c. A product has a net (or cost) price of $25 and is sold for $45. What is the percentage mark-up on net? Round to a whole number percentage. Ignore GST.

d. If a product has a selling price of $85 and the mark up is 25.5% on net price. What is the net(cost)price on the article? Ignore GST and round to 2 decimal places.

#### Question 5 - Break Even (2 marks)

What is the name of the point in a business when profit begins to be returned?

a. Fixed point

b. Variable point

c. Break-even point

d. None of these

#### Question 6 – Depreciation (4 marks)

A company buys a new digital printer for $28,500 on 1 January 2011. The company’s financial year end is 31 December. The scrap (salvage/residual) value is $2,500. Prepare a depreciation schedule for the first 5 years. The straight-line depreciation rate is 20%. Ignore GST.

Note: Go to sheet 2 (separate tab) of the Answer sheet to complete this table.

Year / Book value atbeginning of year ($) / Annual

Depreciation ($) / Book value at

year end ($) / Cumulated

Depreciation ($)

2011

2012

2013

2014

2015

#### Question 7 - Inflation (2 marks)

Are interest rates and inflation linked?

a. Yes

b. No

#### Question 8 (6 marks)

Match the following words to their definition:

· Interest

· Principal

· Inflation

a. The amount of money that has been borrowed or invested

b. The amount of money paid for the privilege of using someone else’s money or forgoing the use of your own money

c. The percentage increase in the price of commodities over time. Generally these price increases have a direct bearing on the interest rate.

#### Question 9 – Simple Interest (13 marks)

a. The amount of money paid or received as interest depends on what 3 factors?

b. Calculate the amount of interest paid on a loan with the following variables – round to whole dollars – use simple interest.

Principal: $5,500

Rate: 11%

Period: 5 years

c. Calculate the amount of interest paid on a loan with the following variables – round to 2 decimal places – use simple interest – assume 365 days in the year.

Principal: $10,500

Rate: 17.25%

Period: 60 days

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Assessment 1, FNSACC303A Version 1, 2015 Last revised 27 January 2015

d. Calculate the maturity value of an investment with the following variables – round to whole dollars – use simple interest

Principal: $60,000

Rate: 7 %

Period: 20 months

e. Calculate the simple interest rate charged on the following investment – round to 2 decimal places.

Investment value: $14,000 Returns: $24,000

Period: 42 months

f. What principal amount will be needed to earn 4.5% on the following: Interest: $6,615

Rate (pa %): 4.5%

Period/time: 42 months

#### Question 10 – Compound Interest (8 marks)

a. Calculate the amount of interest paid for the following loan using compound interest – round to whole dollars – compound annually

Principal: $10,500 Interest rate: 17%

Period: 4 years

b. What would be the period interest rate (r) and number of interest periods (n) on the following investment?

Rate per annum (%): 18% Adjustment period: 6 monthly

Length of investment: 42 months

c. Determine the period interest rate (r) and the number of interest periods (n) if a deposit for 5 years, earns interest of 12% pa compounded annually?

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Assessment 1, FNSACC303A Version 1, 2015 Last revised 27 January 2015

#### Question 11 – Order of Operations (4 marks)

Answer the following using the correct order of operations:

a. 18 + 6 x 4

b. 10 ÷ 2 x 5

c. 18 ÷ 3 – 1 x 4

d. (5 + 2) x (8 – 5)

#### Question 12 – ATO online calculator (6 marks)

Go the Australian Taxation Office website

https://www.ato.gov.au/calculators-and-tools/income-tax-estimator/?utm_source=Top_10_utilities&utm_medium=Utilities&utm_content=CTSortwidget&utm_campaign=Top_10_utilities

click on the Comprehensive tax calculator 2014 and click start.

Answer the following

a. Tax to be paid

b. Tax on taxable income

c. Medicare Levy

Based on:

· A gross income of $65,200

· Resident for a full year

· Single, with no dependents

· Paying the Medicare levy surcharge

Note: Select YES for Medicare levy surcharge and leave all others unchecked.

Question 13 - Excel (4 marks)

Go to Sheet 3 Q13, of the Answer sheet (see bottom tab).

a. Calculate the selling price of Asia Hut’s meals based on a mark up of 35%. Format columns D & E to currency, rounded to whole dollars and right justify. You must use cell references in your formulas.

**Asia Hut Selling Price**

Mark up percentage

Q13. / Item / Meal / Cost per item / Selling Price

101 / Stir fry with rice - small / 10

102 / Stir fry with rice - medium / 12

103 / Stir fry with rice - large / 14

104 / Stir fry with noodles - small / 11

105 / Stir fry with noodles - medium / 13

106 / Stir fry with noodles - large / 15

107 / Dumplings / 15

b. On the same spreadsheet, produce a line chart (graph) of Asia Hut’s sales for 2014.

Select data in table, click on charts, line. Add a title to the chart then save.

**Asia Hut Sales by Value 2014**

Rice $ / Noodles $ / Dumplings $ / Total $

JAN / 42564 / 45633 / 10500 / 98697

FEB / 35848 / 38444 / 8650 / 82942

MAR / 26548 / 29853 / 7550 / 63951

APR / 19852 / 24687 / 6900 / 51439

MAY / 36556 / 36551 / 9250 / 82357

JUN / 25418 / 27498 / 8650 / 61566

JUL / 22892 / 28632 / 6550 / 58074

AUG / 43676 / 48254 / 12150 / 104080

SEP / 34198 / 36952 / 12400 / 83550

OCT / 29864 / 30295 / 7500 / 67659

NOV / 32698 / 35741 / 8250 / 76689

DEC / 29850 / 32598 / 8500 / 70948

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Assessment 1, FNSACC303A Version 1, 2015 Last revised 27 January 2015