Corporate Accounting: Cash Flow, Income Statement, Taxation Treatment

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)
Cash flow statement analysis:
The cash flow of Farmpride Foods limited has been segmented into three parts
comprising of cash flow from operating activities, cash flow from investing activities and
cash flow from financing activities. Items under the cash flow from operating activities
include payments made to suppliers, receipt from customers, income tax paid, income tax
received and finance costs. Net cash provided by operating activities has reduced from $
13687 in year 2016 to $ 7661 in year 2017. This decline in net cash provided from operating
activities is attributable to increase in payment from employees and suppliers. Cash flow
from investing activities comprise of payment from property, equipment and plant and
proceeds generated from sale of property, equipment and plant. The net cash used in
investing activities has decline from $ 6416 to $ 2267 in year 2016 (Farmpride.com.au 2018).
This is due to decrease in payment made for such assets and increase in proceeds from sale of
equipment, property and plant. Cash flow from financing activities includes repayment of
finance leases and repayment of borrowings. Net cash used in financing activities has
declined from $ 4419 in year 2016 to $ 794 in year 2017 respectively because of decrease in
repayment of finance lease. It can be seen that total amount of cash and cash equivalent has
increased in year 2017 to $ 8038 as against $ 3438 (Farmpride.com.au 2018).
Requirement ii)
Comparative analysis of cash flow items for three years:
Particular
($000)
2015
($000)
2016
($000)
2017
Net cash flows from operating activities 9233 13,687 7,661
Net cash flows used in investing
activities -535
-
6,416
-
2,267

CORPORATE ACCOUNTING
Net cash flows used in financing
activities -8619
-
4,419
-
794
The above table presents the evaluation of movement in cash flows from three
different cash flow segments. It can be seen that net cash flow from operating activities has
increased initially from $9233 in year 2015 to $ 13687 in year 2016 and thereafter it declined
to $ 7661 in year 2017. Net cash flow in investing activities has increased $ 535 in year 2015
to $ 13687 in year 2016 and thereby it declined in year 2017 to $ 2267. Net cash used in
financing activities decreased from $ 8619 in year 2015 to $ 4419 and further to $ 794 in year
2016 and 2017 respectively (Farmpride.com.au 2018).
2015 2016 2017
Net cash flows from operating activities 9,233 13,687 7,661
Net cash flows used in investing activities -535 -6,416 -2,267
Net cash flows used in financing activities -8,619 -4,419 -794
-7500
-2500
2500
7500
12500
9,233
13,687
7,661
-535
-6,416
-2,267
-8,619
-4,419
-794
Comparative analysis of cash flow categories of
Farmpride Food Limited
Comparative analysis of cash flow items of Farmpride Food limited:
(Source: created by author)