Consolidated Statement- Accounting

The assignment details the preparation of a consolidated cash flow statement for Snow Ltd Group, including the acquisition of Flake Pty Ltd. It also includes a reconciliation of net cash provided in operating activities and a note to disclose the acquisition. The document provides a detailed analysis of the financial health and performance of the organisation.

CONSOLIDATED
STATEMENTS-
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 4...................................................................................................................................1
Consolidated statement of cash flows....................................................................................1
Reconciliation of net cash provided in operating activities....................................................2
Note to disclose the acquisition of Flake Pty Ltd...................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
To prepare a consolidated statement which is consists of all financial details of various peer
companies to an organisation has been stated in a single statement. Thus, it present s the overall
wealth a financial health of the organisation. In the present report there will be preparation of
various consolidates statement of Snow Ltd Group with considering the acquisition of Flake Pty
Ltd. It will include consolidates cash flow statement, reconciliation of net cash from operations
as well as a note to disclose the acquisition etc.
QUESTION 4
Consolidated statement of cash flows
Consolidated Cash flow statement (Consolidated Cash Flow Statement, 2016).
Particulars 2018
Cashflow from operating activities
Profit before tax 121000
Depreciation on building 5000
Depreciation on Equipment 4000
profit on sale of land 509000
loss on sale of equipment 1000
Dividend income 25000
Employee stock options 120000
Doubtful debts 5000
Other operating expenses 8000
Operating profit before working capital 798000
Decrease in inventories 2000
Decrease in trade receivables 7000
Increase in trade payables -3000
Decrease in bank overdraft 69000
Increase in income tax payable -3000
Increase in Long term loans -40000
Increase in deferred tax liability -15000
Cash gathered from operating activities 815000
less: tax (30%) 244500
Net cash from operating activity 570500
Cash flow from investing activity
profit on sale of land 509000
cash payment on acquiring 100% shares of Flake Ltd 33000
Interim dividend 25000
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Goodwill on acquisition 32000
Net cash outflow from investing activities 599000
Cash flow from financing Activities
Increase in share capital 70000
Revaluation reserve 21000
Retained earnings 66000
Net cash out flow from financing activities 157000
Net cash flows from all activities 1326500
Opening balance of cash and cash equivalent 25000
Net cash Flow of the year 1351500
Reconciliation of net cash provided in operating activities
Consolidated Cash flow statement
Particulars 2018
Cashflow from operating activities
Profit before tax 121000
Depreciation on building 5000
Depreciation on Equipment 4000
profit on sale of land 509000
loss on sale of equipment 1000
Dividend income 25000
Employee stock options 120000
Doubtful debts 5000
Other operating expenses 8000
Operating profit before working capital 798000
Decrease in inventories 2000
Decrease in trade receivables 7000
Increase in trade payables -3000
Decrease in bank overdraft 69000
Increase in income tax payable -3000
Increase in Long term loans -40000
Increase in deferred tax liability -15000
Cash gathered from operating activities 815000
less: tax (30%) 244500
Net cash from operating activity 570500
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Note to disclose the acquisition of Flake Pty Ltd.
Snow Ltd is acquiring the 100% shares of Flake Pty Ltd which is amounted to $33000 in cash
(Blatt, Gulbin and Officer, 2018). Thus, this acquisition will help industry in generating the
adequate amount of capital and retaining higher profits. There will be benefits in operational
activities and performance of the organisation (Albu and Albu, 2017).
CONCLUSION
On the basis of above report, it has been concluded that, Snow Ltd group is planning to
acquire Flake Ltd with 100% of its securities. Thus, in respect with this, there were presentation
and preparation of consolidated cash flow statement which represents all transaction and
financial health of business.
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REFERENCES
Books and Journals
Albu, C. N. and Albu, N., 2017. The role and current status of IFRS in the completion of national
accounting rules–Evidence from Romania. Accounting in Europe. 14(1-2). pp.177-186.
Blatt, J., Gulbin, J. and Officer, C. F., 2018. Achieving IFRS Off-Balance-Sheet Treatment in
Trade Receivables Securitizations. The Journal of Structured Finance. 23(4). pp.30-35.
Online
Consolidated Cash Flow Statement. 2016. [Online]. Available through :<
http://marico.com/ar/pdf/Consolidate_CashFlow.pdf>.
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