Logistic Supply Chain Management

ACC201e

Financial Accounting

Assignment 2 – Group-based Assignment

July 2011 Presentation

ACC201e

Assignment 2

Group-based Assignment

This assignment is worth 30% of the final mark for ACC201e Financial Accounting.

The cut-off date for this assignment is 25 August 2011, 2359hrs.

This is a group-based assignment. You should form a group of 3 members from your

seminar group. Each group is required to upload a single report to MyUniSIM via your

respective seminar group. Please elect a group leader. The responsibility of the group leader

is to upload the report on behalf of the group.

It is important for each group member to contribute substantially to the final submitted work.

All group members are equally responsible for the entire submitted assignment. If you feel

that the work distribution is inequitable to either yourself or your group mates, please

highlight this to your instructor as soon as possible. Your instructor will then investigate and

decide on any action that needs to be taken. It is not necessary for all group members to be

awarded the same mark.

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CASE

Section (A)

Cake Forever is a local cake chain selling premium cakes. Established in 2008, they now

operate 6 outlets located strategically in different parts of Singapore.

Bernice, the CEO of the company, has plans to open another 10 outlets by 2013 as she has set

Cake Forever’s vision to be the largest premium cake operator in Singapore. The company

financials have also been looking good with strong sales and profit reported so far, which

augurs well for the banks to finance their expansion plan.

However, sales have been declining every month since mid-2010. At the same time, rising

costs, particularly in raw material and staff costs, took a heavy toll on their business. To cut

costs, the company hired a part-time accountant, Peter, in December 2010.

Peter was initially happy with the part-time accounting job at Cake Forever...