Report on Financial Management Business
6/19/2017 OZ Assignment Help Emma Zoe
Summary of Contents This section consists of the following assessment tasks: 1. Part 1 Learning Activity questions– if not already provided to you please email support@financeinstitute.com.au to obtain the link to complete this task online 2. Part 2 Learning Activity questions– if not already provided to you please email support@financeinstitute.com.au to obtain the link to complete this task online 3. Assignment 1 - CASE STUDY 1− You are required to complete 1 submission to a lender on behalf of these clients 4. Assignment 2 - CASE STUDY 2 -You are required to complete 2 submissions for these equipment finance clients 5. Assignment 3 - THEORY ASSIGNMENT -This is an open book assignment on the units studied within this course 6. Assignment 4 – SERVICING AND RESEARCH ASSIGNMENT -You are required to use what you have learned and your research skills to obtain information necessary to understand the complex legal requirements and risks when providing broking services to clients with complex loan needs 7. Assignment 5 – SUSTAINABILITY PLANNING Business Plan -You are required to use the information provided in Unit 1 along with research on the internet to prepare a Sustainability Business Plan 8. Compulsory Education Department Feedback form
Copyright by www.ozassignmenthelp.com.au
Page 1
Instructions−Instructions help you understand the questions and complete the assignment Questions/Scenario −There may be one or more questions relating to the competencies you are required to demonstrate. Trainees must ensure that the Cover Sheet provided is included with the full completed 5 Assignment submissions (i.e. use the provided cover sheet as the front page to your 5 assignments and submit together). The Assessment is comprised of online questions + 5 assignments that as a whole make up the complete Assessment. You are required to complete the online questions then submit the remaining 5 assignments together. Please note, extensive answers are not always required. Brief answers may be appropriate for some questions as long as you ensure your response adequately addresses the question. Important: Presenting your Assessment submission in a format that is clear and appropriately structured forms part of your assessment and also demonstrates your ability to communicate ideas and concepts and use technology. After NFI has reviewed your Learning Activity question answers and your 5
Copyright by www.ozassignmenthelp.com.au
Page 2
Assignments have been marked, your marks will be advised put into the online platform. All Assessments tasks should be submitted together i.e. At the same time, either by mail or email or by uploading into the online platform. Your completed assessments will NOT be returned to you as they are retained for audit purposes as required. The assessment tasks will also be used to assess your language and literacy skills. The assessor will check your assignments to ensure that they are accurate with correct grammar and punctuation •
that they are appropriate to the target audience
•
that they show planning and organisational skill
•
That they demonstrate your ability to search for products and service information and use problem solving approaches to identify customer needs and expectations.
Time limits− you have six (6) months in which to complete all of your course assessments. You may submit your assessments at any time within this six month period. Extensions are only available after this time for an additional fee. If your six months expires you will no longer have online access available. Pass mark− the assessments above together form the full assessment content of this Diploma course and you are required to achieve 80% on each assessment task in order to pass the course. Keep a copy− With all assessments submitted you should ensure you retain an electronic or scanned or photocopied record of your submissions for your own files and in case of possible loss in transit. Assignment 1 Overview: The purpose of this task is to allow you to demonstrate that you can complete the major steps required in broking or writing a moderately complex loan Copyright by www.ozassignmenthelp.com.au
Page 3
for a customer – through identification, development and implementation of loan options while assessing and managing risks. The samples in Appendix A may prove helpful. Remember that what you prepare will need to be presented to the client orally and thus must be understood by them. Instructions: Read the scenario provided and using the information and data supplied, prepare a formal loan submission for a lender using the following headings. Use subheadings where appropriate to ensure your submission will be easily read and understood by the lender. The client file should contain the standard client information and data that would be included in a typical submission for a loan of this complexity. Your lender submission should include as a minimum the following headings: •
Borrower’s Details
•
Background
•
Loan Purpose
•
Facility Details
•
Funds Position
•
Servicing Capacity
•
Security
•
Risk Assessment and Management (according to lender policy, guidelines and relevant legislation). Consideration must be given to any environmental, heritage or native title implications
•
Recommendations
•
Attachments
Copyright by www.ozassignmenthelp.com.au
Page 4
Scenario Andrew Bisset has been a real estate agent for over 20 years and jointly with his wife Jane own 6 shops at 55 Park Road, Belmont. Mr and Mrs Bisset own the shopping Centre under the Bisset Family Trust. The property was valued 2 years ago at $1,450,000 and has a current ABZ Bank Mortgage of $625,000. Five of the shops are rented out for $96,000. The sixth shop is occupied by Mr Bisset’s real estate business, Bisset’s Real Estate Pty Ltd, which pays annual rental of $42,000 to the family trust. For tax purposes Bisset’s Real Estate pays rent which is $20,000 in excess of the fair market rental value of the shop it occupies. Bisset’s Real Estate Pty Ltd was formed at the beginning of the last financial year to take over the real estate agency business, which was previously conducted by a partnership between Mr Bisset and Joseph Hooper. Bisset’s Real Estate Pty Ltd took over the business when Mr Hooper retired. Mr and Mrs Bisset now wish to acquire 3,000m2 of land near their existing shopping Centre and hold it for 1 – 2 years pending rezoning.. The purchase price is $600,000. The land was previously used as a State Government Health and Dental Centre, but the building was demolished when it became obsolete. The land is currently zoned Copyright by www.ozassignmenthelp.com.au
Page 5
‘Special Purpose’, but the local council earmarked the land for future ‘Commercial’ use in it recently released Town Planning Scheme. The land is located at 423 Belmont Road, Belmont and has a two street frontage with considerable passing traffic. The Bissets have contracted to purchase the property in their capacity as trustees of their family trust and settlement is due with 60 days. They wish to raise 100% of the purchase price plus $25,000 for stamp duty, financing and conveyancing costs. They are willing to offer both the land and their existing shopping Centre as security for the proposed loan. They will contribute a further $20,000 over the next 1−2 years to cover the costs associated with re−zoning of the property and obtaining approval to develop another shopping centre. Unfortunately ABZ Bank policy does not allow them to lend against land zoned ‘Special Purpose’ and cannot assist with the purchase. The Bissets have appointed you to approach an alternative lender to refinance their ABZ Bank Loan and obtain the additional funds required. Assume an interest rate of 7% for a commercial loan, 9% for an overdraft. Work History Andrew has been a real estate agent for 22 years in the Brisbane South East area, he specializes in commercial and industrial property (rent roll comprises 75% commercial and industrial properties). His gross salary last financial year was $78,000. In the previous financial year he drew $55,000 from the partnership with Joseph Hooper. Jane has worked as the property manager since Bisset’s Real Estate Pty Ltd took over the agency after the partnership. Her salary last financial year was $43,000. She did not work in the previous financial year. Financial Information Last Financial year Bisset’s Real Estate Pty Ltd recorded the following financial results:
Copyright by www.ozassignmenthelp.com.au
Page 6
Gross Revenue
$346,000
Net Profit
$72,000
Depreciation
$14,000
Directors Superannuation
$11,000
In the previous financial year the partnership of Andrew Bisset and Joseph Hooper trading as Bisset’s Real Estate recorded the following financial results: Gross Revenue
$422,000
Net Profit
$ 84,000
Depreciation
$ 16,000
Directors Superannuation
$ 11,000
The Bisset Family Trust purchased the shopping centre at Park Road Belmont 18 months ago and its financial statements for the past financial year are as follows: Gross Rental Income
$138,000
Loan Interest
$ 52,000
Management Fees
$ 11,000 (paid to Bisset’s RE Pty Ltd)
Copyright by www.ozassignmenthelp.com.au
Page 7
Net Profit
$ 50,000
Depreciation
$ 25,000
Financial Position – Andrew and Jane Bisset ASSETS House at 12 Currumbin Close Carindale QLD
$560,000
Share Portfolio (Blues Chip Listed Shares)
$345,000
Motor Vehicles
$ 60,000
Furniture
$ 85,000
Cash at Bank
$ 45,000
LIABILITIES Home Loan with ABZ Bank
$190,000
ABZ Bank Credit Card (Limit $20,000)
$ 10,000
Financial Position of Bisset’s Real Estate Pty Ltd Assets Business Goodwill
$250,000
Plant &
Copyright by www.ozassignmenthelp.com.au
$35,000
Page 8
Equipment Debtors
$30,000 Liabilities
ABZ Bank Overdraft (limit $40,000 secured by residence)
$25,000
(Keep in mind that, in the absence of actual tax returns which would confirm the income distribution of the trust, any profit would be distributed and taxed in the hands of the beneficiaries. For the purposes of this assignment, assume company tax of 30%, even though in "real life" of course you cannot assume and the distributions would be clear in “real life” financials.) Property being purchased Vacant Land 423 Belmont Road, Belmont QLD 4171 Lot 84 on RP 9564 Zoning “Special Purpose” Area 3000m2 Existing Property Shopping Centre 55 Park Road, Belmont QLD 4171 Lot 43 on RP 9542 Zoning “Commercial” Area 1850m2
Tenancies
Copyright by www.ozassignmenthelp.com.au
Page 9
Tenant
Rent
Term
Rent Review
J & R Blend $22,000 pa net
3 + 3 years
Annually by CPI
$18,000 pa net
1+ 1 +1 years
Annually by CPI
$28,000 pa net
5 + 5 years
Annually by CPI
$20,000 pa net
3 + 3 years
Annually by CPI
3 + 3 years
Annually by CPI
3 + 3 years
Annually by CPI
T/A Blend News Copelin Accounting Pty Ltd R Spragos T/A Roger’s Deli Vu Nguyen T/A Care Pharmacy M Goodson $8,000 pa net T/A Good Alterations Bisset’s Real Estate Pty Ltd
$42,000 pa net
Copyright by www.ozassignmenthelp.com.au
Page 10
For More visits: Financial Assignment
Copyright by www.ozassignmenthelp.com.au
Page 11