This document contains information about 5 students submitting an assignment for a financial management module. It includes the students' names, IDs, program of study, and assignment details such as the topic, due date, and word count. It also contains a feedback form that will be completed by the lecturer to assess the assignment based on criteria such as the executive summary, cash budget, income statement, and presentation. The feedback form includes scoring scales to determine the grade for each criteria and the overall assignment.

1. Names:
1) Yam Yih Hwan, Harold
2) Wong Choong Ling, Audrey
3) Reuel Chan Ernyi
4) Cheah Xing Nan, Isaac
5) Janice Kong Yin Ying
Students’ IDs:
1) 0305861
2) 0314504
3) 0304538
4) 0314326
5) 0308798
Programme: Bachelor ofQuantity Surveying (Honours),SCHOOL OFARCHITECTURE, BUILDING & DESIGN
Email (Individual/GroupLeader):unknoww0rld@hotmail.com ContactNo (Individual/Group Leader): 016-9196097
Subjectcode and title: FIN60203/QSB3413/QSB3414 FINANCIAL MANAGEMENT
Module Lecturer/ Tutor: Lai Chee Kin
Assignmentnumber: 1 Due date: 19th November 2015
Assignmenttopic as stated in the guidelines provided: Financial forecasting for a business.
Further Information: (e.g.state ifextension wasgranted and attach evidence ofapproval and Revised Submission Date)
I have read and understood the Taylor’s University Regulations on cheating, plagiarism and collusion and state that this piece of work is my own and does
not contain any unacknowledgedworkfromany other sources.
I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand this will involve the
Universityor its contractor copying my work and storing iton a database to be used in future to test work submitted by others.
Note: The attachment ofthisstatementon any electronicallysubmittedassignmentswill be deemed tohave thesame authorityas a signed statement.
Signed:
Date: 19th November2015
Date received from student: Receivedby:

2. A. A feedback form needs to be included with each assignment. Please complete all details clearly.
Student Names and IDs:
1) Yam Yih Hwan, Harold (0305861)
2) Wong Choong Ling, Audrey (0314504)
3) Reuel Chan Ernyi (0304538)
4) Cheah Xing Nan (0314326)
5) Janice Kong Yin Ying (0308798)
Programme: Bachelor ofQuantity Surveying (Honours),SCHOOLOF ARCHITECTURE,BUILDING & DESIGN
Email : unknoww0rld@hotmail.com ContactNo : 016-9196097
Module code and title: FIN60203/QSB3413/QSB3414 FINANCIAL MANAGEMENT Module Lecturer/ Tutor: Lai Chee Kin
Assignmentnumber: 1 Due date: 19 Nov 2015 Word Count: 1254 words
Assignmenttopic as stated in the guidelines provided: Financial Forecasting for a Business.
B. This section will be completed by the lecturer/tutor assessing your assignment:
CRITERIA %
DISTINCTION
(7.5-10)
CREDIT
(6-7.4)
PASS
(5-5.9)
MARGINAL
FAIL(4-4.9)
FAIL
(0-3.9) SCORE
Executive summary 5 # Excellent
Clear, conciseand to the point.
States clearly the objectivesofthe
report.
# Good # Fair # Poor # Confusing
Wordy, objectivesnotstated
clearly.
Cash budget 30 # Excellent
Accurate, well-presented in a clear
format
# Good # Fair # Poor # Erroneous
Many mistakes, poor and confusing
presentation
Proforma Income
Statement andProforma
Balance Sheet
40 # Excellent
Accurate calculations,presented in
proper format, easy to read
# Good # Fair # Poor # Erroneous
Multiple errors in calculations
showing lackofunderstanding,
doesn’tfollow appropriate format,
poor presentation that reduces
readability and understandability
Evaluationof the cash
budget andprojected
statements and
comments onthe
company’s policies
20 # Excellent
Comprehensive evaluationsand
discussionsbased on sound
analyses and research,clearly
states problems and strengths
based on the projected statements
# Good # Fair # Poor # Erroneous
Makes claimswithoutbacking with
facts, inadequate analyses,shows
weak understanding ofthe financial
aspects revealed by the projected
statements
Structure and
presentation,language,
reference of sources
5 # Excellent
Excellentheadings/sub-headings,
layout, pagination. Excellent
grammar, spelling.
Effective/accurate use offigures
and tables. Excellentreferences of
sources.
# Good # Fair # Poor # Erroneous
Inappropriate or no headings, poor
and confusing layout,
innappropriate or no page
numbers. Weak grammar,many
spelling mistakes,
ineffective/inaccurate use offigures
and tables. Poor or no references
of sources.
Penalty
Total (100%)
Final score (25%)
Any additionalcomments(if there is any):Comments:
Assessed by: Date:
Sample Moderated by (ifany): Date:
GRADE/ MARK

3. ASSESSMENT FOR PRESENTATION
Programme :SABD
Semester / Intake :SEM 5, August 2015 Intake Subject Code :FIN60203/QSB3413/QSB3414
Tutorial Group :1 Subject Title :Financial Management
Guidelines to Assessing Presentations
0.75-1 = Superior (A) 0.60-0.74 =Above Average (B) 0.50-0.59 = Average (C) 0.40-0.49 = Below Average (D)
0.00-0.39 = Weak/No Attempt (F)
Quality of Contents : Key points are clearly identified and explained, with clear conclusions. PowerPoint
slides or other presentation aids contain the required subject information and are
presented clearly.
Language : English Language; grammatically correct, good vocabulary, proper sentence
construction.
Clarity : Smooth speech, voice is clear and loud, flow in the explanation is easy to
understand.
Dressing : Formal and professional.
Composure : Calm, composed and not fidgety. Good eye contact.
No. Name / Student ID
Contents of Presentation Oral Skills
Body Language
and Dressing Total
Section / Work Done
(Identify and describe work
completed)
Qualityof
Contents
Language
Clarity
Dressing
Composure
(1) (1) (1) (1) (1) (5)
1. Yam Yih Hwan,Harold
2. Wong Choong Ling,Audrey
3. Reuel Chan Ernyi
4. Cheah Xing Nan, Isaac
5. Janice Kong Yin Ying
Other Comments
Assessed by: Date:

4. Balance Sheet
This balance sheet (statement of financial position) represents LTSB financial
position at the end of a specific period; in this case,it is prepares at the end of each year. The
amounts stated on the balance sheet dated on 31 December,shows all the transactions
throughout the year.
Ratios can be used from the balanced sheet in order to provide a further
understanding on how healthy the company is comparing from the previous year as well as
from other companies. From LTSB balance sheet,three ratios can be derived showing LTSB
liquidity in terms of cash,the percentage of LTSB financed from equity or debt and how
LTSB is financed from debt.
In the current year,LTSB has RM0.10 in current assets for every RM1 in current
liabilities. However from the forecasting for the next year, LTSB has RM0.48 in current
assets for every RM1 in current liabilities. This reflects the liquidity for next year is expected
to be improved. This is calculated by the current assets divide the current liabilities.
The debt ratio shows the firm’s assets that are financed by debt. In the current year,
LTSB finances 73% of its assets by debt and 27% by equity. In the forecasting year to come,
LTSB finances 75% of its assets by debt and 25% by equity. The ratio is higher in the
forecasted year compare to the current year. This is due to the expected increase in sale for
next year but the trades payable were labeled as debt. Generally it is a good sign because the
debts are actually sales.
Ratios Current Year Forecasted Year
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝐶𝑅 =
𝑅𝑀217,000
𝑅𝑀 2,094,000
= 0.10
𝐶𝑅 =
𝑅𝑀1,424,500
𝑅𝑀2,976,000
= 0.48
𝐷𝑒𝑏𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝐷𝑅 =
𝑅𝑀2,094,000
𝑅𝑀 2,887,000
= 0.73
𝐷𝑅 =
𝑅𝑀2,976,000
𝑅𝑀 3,980,500
= 0.75
𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 =
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦
𝐷𝐸 =
𝑅𝑀2,094,000
𝑅𝑀 793,000
= 2.64
𝐷𝐸 =
𝑅𝑀2,976,000
𝑅𝑀 1,004,500
= 2.96

5. The debt to equity ratio is a financial ratio representing the shareholder’s equity and
debt used to finance company assets; it displays the percentage of the company financed by
investors and creditors. In the forecasted year,debt to equity is around 2.96, which compare
to the current year of 2.64. A higher debt to equity ratio indicates the company is financed
more from creditor rather than investor financing; which in the case of LTSB, indicates the
expected increase of sales leads to increase in total debt.
Income Statement
Income statement is important to LTSB as it shows the profitability of the company
during the time interval specified in its direction. Thus, income statement only shows the
LTSB’s revenue, expenses,profits and loss. While cash that the company receive or paid
would not be shown in the income statement. In order to know total income of LTSB, an
income statement has prepared to show the net profit of the company by the end of the year.
To get the projected net profit, we need to deduct all the expenses arise from the sales of
which come to a total of RM 211,500.00.
From the income statement, it can be say that LTSB is expected to earn a net profit of
RM 211,500.00 for the projected year. This would be good news for LTSB as they are
expanding their sales for next year.
Revenue Recognition
An important accounting procedure for any business is the process of revenue
recognition. This principle establishes when a business has officially earned revenue and can
declare the earnings on its accounting statements and for taxes.
LTSB practices Accrualbasis in this case,which recognizes the revenue only after
holidays taken by customer. LTSB generates revenue by charging customer a flat rate for
booking holidays. They are following a policy that the time of holiday bookings were made,
transactions are billed directly to customers, full payments has to be paid and are
nonrefundable. The payments are then used to pay commissions for travel agents,flight and
hotel accommodation.
However, LTSB does not recognize the payments received as revenue until the holidays taken,
and labeled as “Trade payables” in balance sheet.
Due to Matching Principle the revenue can only be recognized when there are
expenses arises. This would eventually lead to a contradicting situation where in terms of

6. accounting, although sales were achieved, but no revenues recognized in that certain period
(September until December for example) because the holidays not yet taken. While in actual
fact although revenues are not recognized, but LTSB is still able to maintain positive cash
flows during that period.
While LTSB doesn’t practices refund to customers irrespective of cancellation date,
they are making profits whatsoever,just a matter of more or less (early cancellation or late
cancellation). Therefore there are no differences of recognizing revenue before holidays taken
or after holiday taken, it’s just Accrualbasis complicated the financial statements,which
could be reflected in Cash Budget statements,Income statement and Balance sheet.
Cash Budget
From the Cash Budget provided, LTSB had a negative cash flow from its business
vary from, -RM 858,500.00 in the month of June, -RM 2,187,500.00 in the month of July, -
RM 2,595,500.00 in the month of August and -RM 1,344,500.00 in the month of September.
With a negative cash flow in these few months, it can send LTSB into a quick spiral of
financial crisis if some precautions were not taken in consideration. In the month where
negative cash flow shown, it indicates that LTSB had spent more than it brings into the
business. Therefore,LTSB should stop spending in advanced and try to collect the sales
payment earlier when the bookings were made.
Once LTSB counteract its negative cash flow, there are a few ways to be taken to
ensure that a positive cash flow remains and that LTSB’s business overall financial
performance stays healthy. First of all, LTSB should analyze its expenses and reduce its
expenses cost as much as possible. Unnecessary expenses may create havoc on its cash flow.
Almost every business owner will find that they can phase out at least a portion of its current
expenses. For example, to reduce electricity expenses by turning off the office lights or
computer usage when no one is around or lower labour expenses by sending staff on
travelling when they’re not needed.

7. Furthermore, LTSB may create a strategy to increase revenue, if cutting expenses
isn’t enough to counteract their negative cash flow, LTSB have to devise a plan to bring in
more revenue. For example, using different advertising markets to promote their holiday
packages or targeting a wider range of customers,hence increasing their sales. Also, in the
month where cash flow are relatively high, LTSB may consider invest on short-term
investment to bring in more revenues. LTSB shall take note on the factors to pick on short-
term investment that fit their needs; such as liquidity, interest rate and safety of principal.
Last but not least, LTSB must provide a cash budget annually. By providing a cash
budget, it shows the business three major things: the amount of money the business is
generating, the amount of money which is going toward expenses and the amount of money
the business have leftover to spend on other expenses. If LTSB have no idea the amount of
money the business is generating or how much is it spending, then it’s impossible to know if
the business is spending too much.
In conclusion, with a proper cash budget schedule, LTSB will know how much
revenue the business is bringing in and also its spending. From there,LTSB can make
decisions whether to take actions on their cash flow each month.