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Corporate Accounting - Sample Assignment

   

Added on  2021-05-31

11 Pages2179 Words52 Views
Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the Student:Name of the University:Author’s Note:Course ID:

1CORPORATE ACCOUNTINGTable of ContentsCash flow statement:........................................................................................................................2Requirement (i):...........................................................................................................................2Requirement (ii):..........................................................................................................................3Other comprehensive income statement:.........................................................................................5Requirement (iii):.........................................................................................................................5Requirement (iv):.........................................................................................................................5Requirement (v):..........................................................................................................................5Accounting for corporate income tax:.............................................................................................6Requirement (vi):.........................................................................................................................6Requirement (vii):........................................................................................................................6Requirement (viii):.......................................................................................................................6Requirement (ix):.........................................................................................................................7Requirement (x):..........................................................................................................................7Requirement (xi):.........................................................................................................................7References........................................................................................................................................9

2CORPORATE ACCOUNTINGCash flow statement:Requirement (i):The reporting areas of the assignment has been considered with “Virgin Australia” whichis recognised as one of the top airline companies listed under ASX and coded as VAH. Thedepictions of the cash flow statement have been segregated into “financing activities, investingactivities and operating activities” (Virginaustralia.com, 2018). Some of the main classificationof the items are listed below as follows:Cash flows from operating activities:Some of the main items in this section is considered with receiving financing income,payments made to staff, finance costs paid and payment to suppliers. The amount obtained fromthe credit sales are known as customer receives in this case. With particular reference to virginAustralia, the overall increase in the cash inflow is discerned as “$5,567.40 million in 2016 to$5,657.10 million in 2017”. This is mainly due to the fact of strict credit policy adopted by thecompany. The payments made to the staff and suppliers are amounts which are purchased oncredit and staff payments include the salaries (Virginaustralia.com, 2018). The increasing trendunder these subheadings are evident in the case of Virgin with an increasing trend of additionalpurchases from suppliers. It is further noted that finance income is received to utilise money forrepayment on demand or at a specified period. In addition to this, the increase in this section isseen to be writing off the considerable portion of as uncollectible. In 2017, the finance costs haveshown certain decrease due to lesser amount of interest payment on loans (Virginaustralia.com,2018).

3CORPORATE ACCOUNTINGCash flows from investing activities:The primary items listed under the cash from investing activities have been consideredwith equity distributions, proceed from borrowings and several other items. The borrowings havebeen further able to signify the total amount disbursed to the borrower under the terms ofagreement of loan (Virginaustralia.com, 2018). It needs to be further assessed from the annualreport that the borrowings have decreased in 2017, whereas there is increase in the repayment ofborrowings during the same year. Additionally, the distribution of equity has signified on thetotal amount disbursed to the borrower on part of the lender as per the agreement of the loan. Itneeds to be further observed that the annual report of Virgin Australia has considered theproceeds from shareholders and the total amount has reduced due to increased retained earnings(Scott, 2015).Requirement (ii):The evidence of three categories of cash flows such as “financing activities, operatingactivities and investing activities” can be traced from the annual report published by VirginAustralia. Moreover, the comparative analysis in these categories have been shown with the useof bar diagram as follows:

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