Corporate Accounting: Analysis of Cash Flow, Taxation and Deferred Tax Assets

Running head: CORPORATE ACCOUNTING
Corporate accounting
Name of the Student
Name of the University
Author Note

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

CORPORATE ACCOUNTING
Requirement i)
Analysis of elements of cash flow of GWA Group limited:
The cash flow statement of GWA Group is segmented into three parts comprising of
cash flow from operating activities, cash flow from financing activities and cash flow from
investing activities. Several items as reported under the operating activities include receipt
from customers, cash generated from operations, interest received, income tax paid and
interest and facility paid. Net cash from operating activities has increased from $ 54924 in
year 2016 compared to $ 57171 (Gwagroup.com.au, 2018). This increase in cash flow from
operating activities is because of reduction in payment made to suppliers and employees,
facility and interest fees paid and income tax paid. In addition to this, total amount of interest
received has increased in recent year. Cash flow from investing activities include items such
as acquisition of intangible assets, property, equipment and plant, proceeds generated from
sales of such assets, net transaction costs and business disposal. In year, total amount of net
cash generated from investing activities stood at $ 12 as against net cash used from investing
activities of amount $ 4911 (Gwagroup.com.au, 2018). This is so because a significant
amount has been invested for acquiring intangible assets, property, equipment and plant.
Items under the cash flow from financing activities include repayment of borrowings,
proceeds from borrowing, dividend paid, payment for on market share buyback and capital
return to LTI grants holders. There is decrease is net cash used in financing activities from $
53791 in year 2016 as against $ 51590 in year 2017. This decrease in net cash used is
attributable to higher amount of dividend paid and repayment of borrowings. There is
increment in payment from borrowings that has led to decrease in net cash used in financing
activities.

CORPORATE ACCOUNTING
Requirement ii)
Comparative analysis of cash flow items for three years:
Particular 2015 2016 2017
Net cash flows from operating activities
$
43,505.00 54,924 57,171
Net cash flows used in investing
activities
$
1,16,596.00 12
-
4,911
Net cash flows used in financing
activities -155524
-
53,791
-
51,590
It can be seen from above table that there is increase in net cash flow from operating
activities from $ 43505 in year 2015 to $ 54924 and $ 57171 in year 2016 and 2017. Now,
looking at the figures, the amount of net cash flow from investing activities in year 2016 and
2015 compared to net cash used from investing activities. There has been decrease in net cash
flow from financing activities from $ 155524 in year 2015 compared to $ 53791 in year 2016
and $ 51590 in year 2017 respectively (Gwagroup.com.au, 2018).