Financial Statement Analysis Name of the Student Name of the University Author's Note Answer to Question 1
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Added on 2020-05-04
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In the process of financial statement analysis, the analysis of cash flow of the companies plays a crucial part as it provides the investors with the knowledge about the cash inflow and outflow of the companies along with their reasons. In the cash flow statement of every business organizations, two of the major activities are cash flow from investing activities and cash flow from financing activities that play crucial part in determining the financial position of the companies. Table 2: Cash Flow from Financing Activities (Source:) Cash flow from financing
Financial Statement Analysis Name of the Student Name of the University Author's Note Answer to Question 1
Added on 2020-05-04
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Running head: FINANCIAL STATEMENT ANALYSISFinancial Statement AnalysisName of the StudentName of the UniversityAuthor’s Note
1FINANCIAL STATEMENT ANALYSISAnswer to Question 1Financial statement analysis is a major factor for the financial analysts and investors inorder to measure the financial performance of the companies as well as to know about theirfinancial health1. In the process of financial statement analysis, the analysis of cash flow of thecompanies plays a crucial part as it provides the investors with the knowledge about the cashinflow and outflow of the companies along with their reasons. In the 2016 annual report ofAdelaide Brighton Limited, the Statement of Cash Flows can be seen. In the cash flow statementof every business organizations, two of the major activities are cash flow from investingactivities and cash flow from financing activities that play crucial part in determining thefinancial position of the companies. Cash flow from investing activities shows the amount ofcash inflows and outflows due to various investing activities like loss or gain from investments,purchase or buy of assets and others2.Table: Cash Flow from Investing Activities(Souce:3)1Zack, Gerard M. "Financial Statement Analysis."Financial Statement Fraud: Strategies forDetection and Investigation(2013): 209-213.2Higgins, Robert C.Analysis for financial management. McGraw-Hill/Irwin, 2012.
2FINANCIAL STATEMENT ANALYSISAs per 2016 cash flow statement of Adelaide Brighton Limited, the company spentmoney for the payment of property, plant, equipment and intangibles. Another major head forcash outflow in investing activities of Adelaide Brighton Limited is payments of loans to jointventure entities. However, there are two heads in the investing activities of Adelaide BrightonLimited where there is inflow of cash; they are sale from property, plant and equipment (PPE)and income from repayment of loan. In this context, it needs to be mentioned that two of thelargest investing activities are payment for PPE that is $86.5 million and sales of PPE that is$23.2 million4.Table 2: Cash Flow from Financing Activities(Source:5)3"FinancialStatement2016".Adbri.Com.Au/,2017.http://adbri.com.au/-/adbri/lib/pdfs/2016/reports/ABL%202016%20AR%20-%20Financials%20FINAL.pdf.4"FinancialStatement2016".Adbri.Com.Au/,2017.http://adbri.com.au/-/adbri/lib/pdfs/2016/reports/ABL%202016%20AR%20-%20Financials%20FINAL.pdf.5"FinancialStatement2016".Adbri.Com.Au/,2017.http://adbri.com.au/-/adbri/lib/pdfs/2016/reports/ABL%202016%20AR%20-%20Financials%20FINAL.pdf.
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