You will need to review the provided current case study information and compare it to the budget you established in Assessment Task 1. After evaluating these you will need to report on the following: ● significant issues ● variances from budget ● comparative performances ● recommendations for ongoing financial viability ● evaluation of financial management processes. Procedure 1. Read the case study. 2. Develop a variance report based on the format and template provided by Houzit. 3. Complete a cash flow analysis on the average length of time it takes Houzit to collect funds from its debtors to determine the trend based on the financial reports in Assessment Task 1. 4. Examine the sales budget, profit budget, cash flow budget and debtor ageing summary to identify the following: a. Issues: i. Identify, describe and prioritise significant issues that are evidenced in the provided case study information and describe reasons or causes of these issues. Include in this issues of financial probity that you have identified or considered when monitoring these budgets. b. Variances: i. Complete an actual-to-budget variance report, using the template provided in the case study. ii. Identify variances by comparing actual results with the established budget, and provide reasons why these variances may have occurred. c. Performance: i. Compare financial performance of the organisation (according to financial information provided) to industry benchmarks for this organisation in line with the retail trade sector. ii. Respond to the performance questions provided by the CEO, as provided by the board of Houzit, iii. Determine a trend of the average debtor days and the impact to the cash flow of Houzit. d. Recommendations: i. Outline your recommendations for ongoing financial viability for the organisation, based on your assessment of the issues, reasons for variances and organisational performance you have identified (Steps 1–3). ii. Include in this section your plans for a revised budget, effectively managing contingencies and issues that have been identified in feedback and monitoring of the budgets. e. Evaluation: Provide a summary review of the financial management processes in place for the organisation, in light of your assessment of the issues, reasons for variances and organisational performance you have identified. Include in this section any recommendations you have for modifying management processes