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(PDF) The Value of Corporate Accounting

   

Added on  2021-05-30

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Finance
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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the StudentName of the UniversityAuthor’s Note
(PDF) The Value of Corporate Accounting_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............................................................................................7Requirement [vi]..........................................................................................................................7Requirement [vii].........................................................................................................................7Requirement [viii]........................................................................................................................8Requirement [ix]..........................................................................................................................9Requirement [x]...........................................................................................................................9Requirement [xi]........................................................................................................................10References......................................................................................................................................11
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2CORPORATE ACCOUNTINGCash Flow StatementRequirement [i]The statement of cash flow is a major financial statements of the companies that showsthe major inflow and outflow of cash. The main aim of this part is to discuss about the items ofthe cash flow statement of Retail Food Group (RFG) of Australia. Cash Flow from Operating Activities: There are four major items under the cash flow fromoperating activities of RFG. They are receipts from customers; payment to suppliers andemployees; payment of interest and other cost finance; and payment of income tax (rfg.com.au,2018).Receipts from customers refer to the amount that RFG receives from the customers due tothe credit sales. It can be seen that there has been increase in the receipts from customers in RFGfrom 2015 to 2017; that is $263,555,000 in 2015, $332,754,000 in 2016 and $456,000,000 in2017 (rfg.com.au, 2018). The main reason of this increase is the increase in credit sales. Paymentto suppliers is the amount that RFG is required to pay to their suppliers for credit purchase. Thesame increasing trend can be seen in this item from2015 to 2017; and the main reason behindthis increase in payment is the increase in purchase. RFG is required to pay the interest on theirterm loans. There is increase in these expenses from 2015 to 2017 that shows the increasedborrowing of the company. Decrease in the payment of interest can be from 2015 to 2016; butagain increase can be seen in 2017 due to the increase in profitability of RFG in 2017 (Reid &Myddelton, 2017).
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3CORPORATE ACCOUNTINGCash Flow from Investing Activities: The major items under the cash flow from investingactivities of RFG are payment and proceed from property, plant and equipment, payment forintangible assets and interest received (rfg.com.au, 2018).Payment for property, plant and equipment is the amount that RFG pays for theacquisition and purchase of these items. It can be observed that there has been an increase in thispayment by RFG; that is $6,551,000 in 2015, 14,429,000 in 2016 and $30,650,000 in 2017(rfg.com.au, 2018). It implies that RFG is increasing their asset base by purchasing them. It canalso be observed that the company has not received significant amount from the selling of theirproperty, plant and equipment as the company is increasing their asset base. Payment ofintangible assets refers to the amount that RFG pays for the acquisition of intangible assets(Miloš & Jovan, 2013). It can be seen that there is an increase in this payment from 2015 to2016, but 2017 registered as slight decrease. Interest received refers to the process as a form ofinterest from investment. There is a constant increase in this item from 2015 to 2017 thatindicates the increased investment of RFG. Cash Flow from Financing Activities: The major items of RFG under this are proceed fromshare issue, proceeds and repayment from borrowing, payment of dividend, payment for shareand debt issue (rfg.com.au, 2018).Proceed from issue of share refers to the income of RFG from the share and securityissue. It can be seen that RFG did not receive any proceed due to not issuance of any share in2016. In 2015 and 2017, this amount was $$68,280,000 and $35,600,000 respectively. It can alsobe observed that there is a decrease in the proceeds from borrowings from 2015 to 2016(rfg.com.au, 2018). However, increase in this item can be seen in 2017 due to the increase in
(PDF) The Value of Corporate Accounting_4

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