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(Solution) Corporate Accounting : Assignment

   

Added on  2021-06-17

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Running head: CORPORATE ACCOUNTINGName of the StudentName of the universityAuthor note

1CORPORATE ACCOUNTINGTable of ContentsPart A:...................................................................................................................................................2Cash Flow Statement:........................................................................................................................2List of items:......................................................................................................................................2Changes:............................................................................................................................................3Part B:....................................................................................................................................................4Other Comprehensive Income Statement:.........................................................................................4Part C:....................................................................................................................................................6Accounting for Corporate Income:....................................................................................................6References:............................................................................................................................................9

2CORPORATE ACCOUNTINGPart A:Discussion on Cash Flow Statements:i)The importance of the statement which shows the financial performance of thecompany by providing comprehensive information of all the cash activities of thecompany cannot be undermined. It gives information about the most important element ofany business organisation, which is known as cash in hand at the end of the year. It is areport card of the cash related activities of any company. Cash, being the most importantasset of any company is very necessary for any business entity’s sustenance. It is thefoundation on which the whole business is set up and on which it actually functions.Therefore as a result of this very reason, its importance to the company or its group ofstakeholders cannot be ignored (Call, Chen and Tong., 2013). It helps the investors inassessing the credit worthiness and the overall soundness of its financial planning’s andstructure. It is on the basis of this cash, that the investors decide, whether to invest in thisparticular business or not. In this report, as a result of which, the cash flow statement ofthe famous packaging company Amcor Limited which is listed in the AustralianSecurities exchange has been provided and analysed (Pavlović and Bogdanović.,2013.). The company of Amcor develops and produces packaging containers, specialtycartoons and along with this focuses on the pharmaceutical, medical devices and personalhealth care.Catalogue of cash objects:The cash flow of any company can be viewed with the help of a series of cash items such ascash from investing, financing and operating activities, each one having a separate catalogue ofobjects and items of their own. From the operating activities, cash dividend has been received by thecompany from its vested interests in and around the world, interests has also been received in thesame way. Some interest expense has also been incurred and consequently been paid by the company

3CORPORATE ACCOUNTING(Günther, 2015). There are also some tax expenses which have been incurred and paid by thecompany. In the arena of investing activities of the company, some purchase of plants, properties andequipment’s has been made. In association with this, payments have also been made to all thesubsidiaries and joint ventures. The sale of the plants and machineries from the previous years hasalso been done, which has brought in some fresh cash for the company. Amcor has also receivedseveral amounts of cash as proceeds from the disposal of associates and controlled businesses (Hales& Orpurt, S2013). There have also been some repayments of borrowings which were initiallyborrowed by the company. In the financing activities arena, the packaging company has also seensome activities.Changes:There has been a good amount of changes in each of the main three activities of the cash flowstatement for the year 2017 from the previous years. In the case of the operating activities, there hasbeen a decrease in the payment of dividends which the Amcor used to receive from its associates andjoint venture operations. It has come down from $20 million to $7 million in the year 2017. Theamount of interests received by the company has also decreased from $23 million in 2015 to a paltry$11 million in the year 2017. The amount of taxes paid by the company has also increased from $155in 2015, to 4170 in 2016 and it had a slight fall in the year 2017 to $160 million. The amount ofinterest expense has also remained mostly consistent in the range of $180 million in the three yearperiod. In the case of the investing activities of the company, the purchase of plant and equipment’shave been made and has consequently increased from $323 million to $348 million to $379 million inthe year 2017. The payment for subsidiaries and joint ventures have also increased considerably from$98 million to $498 million in the year 2017. Sale of plants has also taken a downfall from $84million to $30 million. In the case of the financing activities, the repayments of borrowings havedecreased from $5699 in 2015, to $5036 in 2016 to $3745 in the year 2017. Payment for treasuryshares have also taken a downfall from $78 million in the year 2015 to $40 in the year 2017. In thesame manner, proceeds from the borrowings taken earlier has also decreased considerably from $6084to $3940 in the year 2017. Thus as it can be seen that a major amount of changes had been seen in the

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