logo

Corporate Accounting Analysis- PDF

   

Added on  2021-06-14

13 Pages3031 Words72 Views
Running head: CORPORATE ACCOUNTING Corporate accountingName of the StudentName of the UniversityAuthor Note

CORPORATE ACCOUNTINGTable of ContentsRequirement i)............................................................................................................................2Requirement ii)...........................................................................................................................3Requirement iii).........................................................................................................................3Requirement iv)..........................................................................................................................4Requirement v)...........................................................................................................................5Requirement vi)..........................................................................................................................5Requirement vii).........................................................................................................................5Requirement viii).......................................................................................................................6Requirement ix)..........................................................................................................................6Requirement x)...........................................................................................................................7Requirement xi)..........................................................................................................................8References list:.........................................................................................................................10Appendix:.................................................................................................................................12

CORPORATE ACCOUNTINGRequirement i)Analysis of cash flow statement:The cash flow of Gazal Corporation limited has been segmented into three parts thatis cash flow from operating activities, cash flow from financing activities sand cash flowfrom investing activities. Items reported under cash flow from operating activities includepayment from customers, payment to suppliers, interest received, income tax paid andinterest and other cost of finances paid. It can be seen that net cash flow from operatingactivities has reduced significantly from $ 5531000 in year 2016 compared to $ 14000 in year2017. The reason attributable to this fall is that payment from customers has reduceddrastically and there has been increment in income tax paid. Items under cash flow from financing activities include proceed from share issue,proceed from borrowing, dividend paid and repayment from borrowing. The net cash used infinancing activities reduced from $ 82485000 in year 2016 as against 2812 in year 2017. Thisis so because there has been reduction in amount that is repaid on borrowing in the currentyear. Items reported under cash flow from investing activities include purchase of property,equipment and plant, purchase of intangibles, proceeds from sale of building, equipment andplant, proceeds from sale of discontinued operations, income tax paid non discontinuedoperations and dividend from joint ventures. Net cash flow generated from investingactivities in year 2016 stood at $ 70090000 to ($7135000) in year 2017 indicating net cashused in investing activities. Total amount of cash and cash equivalent in year 2017 isrecorded at $ 2610 compared to $ 12540 in year 2016 depicting a considerable decline.

CORPORATE ACCOUNTINGRequirement ii)Comparative analysis of three different categories of cash flow:Particular201520162017Net cash flows from operating activities32885,531 14 Net cash flows used in investing activities-5573 70,090 -7,135 Net cash flows used in financing activities15468 -82,485 -2,812 The above table shows a comparative analysis of three different categories of cashflow. It can be seen that the net cash flows from operating activities has declined significantlysince year 2016 from $ 5531000 to $ 14000 in year 2017. However, there was increment incash flow from 3288000 in year 2015 to $ 5531000 in year 2016. Now, looking at the figuresof net cash flow from investing activities, it can be seen that company used net cash fromoperating activities in year 2017 and 2017 respectively. However, in year 2016, there was netcash flow of amount $ 70090000. Net cash flow was used from financing activities in year2017 and 2016 as against year 2015 when net cash flow was generated. Requirement iii)The items that have been recorded in the comprehensive income statement involvesprofit reported after tax, items that are reclassified and items that are not reclassifiedsubsequently to the profit and loss along with total income for the period. Items that arereclassified subsequently to profit and loss includes income tax on comprehensive incomeitems, exchange differences on translation of foreign exchange, comprehensive income fromjoint venture, cash floe hedges and loan and gains taken on equity (Henderson et al. 2015).Some of the items that are not reclassified are revaluation of land and building at fair valueand income tax on items of other comprehensive income.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Corporate Accounting: Analysis of Cash Flow, Taxation and Deferred Tax Assets
|13
|3082
|63

Analysis of cash flow statement and balance sheet of a publicly traded apparel company
|10
|884
|301

Corporate Accounting: Cash Flow Statement, Other Comprehensive Income Statement, and Accounting for Corporate Income Tax
|8
|1833
|196

Corporate Accounting Study Material Notes (PDF)
|12
|3008
|18

Analysis of Cash Flows, Other Comprehensive Income Statement and Corporate Income Tax of Ausdrill Limited
|10
|2234
|117

Cash Flow Analysis of Premier Investments Limited
|5
|1114
|118