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Corporate Accounting - Sample Assignment PDF

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Added on  2021-06-18

Corporate Accounting - Sample Assignment PDF

   Added on 2021-06-18

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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the StudentName of the UniversityAuthor’s Note
Corporate Accounting - Sample Assignment PDF_1
1CORPORATE ACCOUNTINGTable of ContentsCash Flow Statement.......................................................................................................................2Requirement [i]............................................................................................................................2Requirement [ii]...........................................................................................................................4Other Comprehensive Income Statement........................................................................................5Requirement [iii]..........................................................................................................................5Requirement [iv]..........................................................................................................................5Requirement [v]...........................................................................................................................6Accounting for Corporate Income Tax............................................................................................6Requirement [vi]..........................................................................................................................6Requirement [vii].........................................................................................................................7Requirement [viii]........................................................................................................................8Requirement [ix]..........................................................................................................................8Requirement [x]...........................................................................................................................9Requirement [xi]..........................................................................................................................9References......................................................................................................................................10
Corporate Accounting - Sample Assignment PDF_2
2CORPORATE ACCOUNTINGCash Flow StatementRequirement [i]The cash flow statements is considered as a major financial statements that depicts themajor changes in the accounts of balance sheet and income that affect the cash and cashequivalent of the companies. Cash Flow from Operating Activities: In Wesfarmers, the major items under OperatingActivities are receipts from the customers, payment to the suppliers, interest received, borrowingcost and many others. Receipts from the customers refer to the sales proceeds that Wesfarmersreceives from credit sales (Reid and Myddelton 2017). There is an increase in these receipts in Wesfarmers that is from $74,042 million to$71,157 million in 2017. Payment to the suppliers refer to the amount that Wesfarmers isrequired to pay for their credit purchase; and it has also increased from $66.671 million to$68,713 million due to increase in purchase (wesfarmers.com.au 2018). Interest received refersto the amount that Wesfarmers receives from various investments in their company and others.As a result of the write off of a certain bad debt, there is a decrease in the interest received inWesfarmers in 2017 that is $83 million as compared to $131 million in 2016. Borrowing costsrefers to the charges that Wesfarmers has to pay for debt covenant, finance fees and the paymentof interests. There is a decrease in this expense in 2017 from $288 million to $234 million(wesfarmers.com.au 2018).Cash Flow from Investing Activities: The most crucial items under Financing Activities ofWesfarmers are both the payments and proceeds from property, plant, equipment and
Corporate Accounting - Sample Assignment PDF_3
3CORPORATE ACCOUNTINGintangibles; proceeds from sales of businesses and associates; investment in associates and jointventures; acquisition of subsidiaries and redemption of loan notes.The payment for property, plant, equipment and intangible assets refers to the amountthat Wesfarmers is required to pay for the acquisition and purchase of these items. At the sametime, proceeds from these items refer to the monetary benefits received by Wesfarmers by usingthese items. As per the cash flow statement, Wesfarmers has reduced their investment in theseitems from $1,899 in 2016 to $1,681 in 2017. On the other hand, there is an increase in theproceeds from $563 million in 2016 to $653 million in 2017 due to sales of these assets.Wesfarmers realizes the sold or purchased long-term assets as proceeds and investmentrespectively (wesfarmers.com.au 2018). In the year 2017, Wesfarmers has gained majorproceeds from sales of businesses. However, the investment remains stagnant in both 2017 and2016. In Wesfarmers, loan notes refers to a specific financial instrument that puts the obligationon Wesfarmers to repay the loan along with the interests. Wesfarmers has become able to redeem$54 milling of loan in the year 2017 (wesfarmers.com.au 2018). Cash Flow from Financing Activities: The crucial items under Financing Activities ofWesfarmers are proceeds from borrowing, payment from borrowing and the payment of equitydividend (Miloš and Jovan 2013). Borrowing refers to the total disbursed amount that the lenders provide to the borrowerunder a specific loan covenant. Due to the extension of the loan terms to the debtors, Wesfarmershas registers a massive fall in the proceeds from borrowings that is $220 million in 2017 from$2,360 million in 2016. Moreover, Wesfarmers had to pay large amount to the banks for therepayment of loans. Equity dividend refers to the yearly cash flow that is provided to the
Corporate Accounting - Sample Assignment PDF_4

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