Corporate Accounting

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student
Name of the University
Author’s Note

1CORPORATE ACCOUNTING
Table of Contents
Cash Flow........................................................................................................................................2
Answer to Question (i).................................................................................................................2
Answer to Question (ii)...............................................................................................................4
Other Comprehensive Income Statement........................................................................................6
Answer to Question (iii)..............................................................................................................6
Answer to Question (iv)...............................................................................................................6
Answer to Question (v)................................................................................................................7
Corporate Income Tax.....................................................................................................................7
Answer to Question (vi)...............................................................................................................7
Answer to Question (vii).............................................................................................................8
Answer to Question (viii)............................................................................................................8
Answer to Question (ix)...............................................................................................................9
Answer to Question (x)................................................................................................................9
Answer to Question (xi).............................................................................................................10
References......................................................................................................................................11

2CORPORATE ACCOUNTING
Cash Flow
Answer to Question (i)
Cash Flow from Operating Activities: This particular head of the cash flow of RFG includes
some of the major crucial items. They are receipts from the customers, payment to the suppliers
and employees, payment of interest and other finance cost and income tax paid (Mohanram
2014).
In RFG, receipts from the customers refer to the proceeds of the company from the credit
sales. The 2017 statement of cash flow of RFG shows that there is an increase in the receipts
from the customers that is $456,000,000 in 2017 and $332,754,000 in 2016 (rfg.com.au 2018).
Increased credit sale has contributed to this increase. It is the obligation on the business entity to
make timely payment to their suppliers as a result of the credit purchase from them. In addition,
this outflow also includes the payment of wages and salaries to the employees. As per the 2017
cash flow statement, there is an increase in this payment that is $361,329,000 in 2017 and
$239,623,000 in 2016 (rfg.com.au 2018). It is the obligation on RFG to make the payment for
their borrowed loans that comes under this head as they are taken for carrying on the business
operations. It can be seen that there is an increase in this payment that is $9,416,000 in 2017 and
$9,036,000 in 2016 (rfg.com.au 2018). It implies that RFG has increased their borrowed loans.
The last item is the payment of income tax that RFG is required to pay as per the regulations of
Australian taxation law. This payment increased from $21,460,000 in 2017 to $19,298,000 in
2016 as the company has registered more profit in 2017 from 2016 (rfg.com.au 2018).

3CORPORATE ACCOUNTING
Cash Flow from Investing Activities: Under this head, the crucial items are payments for and
proceeds from property, plant and equipment; payment for intangible assets; payment for
business, interest received and amount advanced to other entities (Lee 2014).
RFG has to pay large amount of money while acquiring or purchasing the property, plant
and equipment. As per the 2017 cash flow statement, there is a major increase in this cash
outflow that is $30,650,000 in 2017 and $14,429,000 in 2016 (rfg.com.au 2018). The aim to
increase the asset base is the main reason for this increase in outflow. At the same time, RFG
receives proceeds from the sales of these assets and increase in this proceed can be seen that is
$163,000 in 2017 and $131,000 million in 2016. RFG has to pay money while acquiring the
intangible assets for business like license, copyright and others. Decrease in this outflow can be
seen that is $537,000 in 2017 and $575,000 in 2016. In RFG, payment for business refers to the
payment of money for acquiring other businesses. Increase can be seen in this expense in 2017
that is $67,195,000 in 2017 and $6,953,000 in 2016 (rfg.com.au 2018). This huge increase
indicates towards the major business acquisition by RFG in 2017. The last item is interest
received that RFG receives from their investments. Massive increase in this cash inflow can be
seen that is $801,000 in 2017 and $486,000 in 2016 that implies the increased investment by the
company.
Cash Flow from Financing Activities: Under this head, the major items are proceeds from the
issue of shares and other securities; repayment and proceeds from borrowings; payment of
dividend; payment for share issue cost and payment for debt issue cost (Mohanram 2014).
Proceeds from issue of shares and other securities refer to the income of RFG from the
shares. As per the 2017 cash flow statement, RFG has gained $35,600,000 from this in 2017, but