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Corporate Accounting - Assignment

   

Added on  2021-05-31

12 Pages2777 Words22 Views
Running head: CORPORATE ACCOUNTINGCorporate accountingName of the StudentName of the UniversityAuthor Note

CORPORATE ACCOUNTING1Table of ContentsRequirement 1............................................................................................................................2Requirement 2............................................................................................................................4Requirement 3............................................................................................................................4Requirement 4............................................................................................................................5Requirement 5............................................................................................................................5Requirement 6............................................................................................................................5Requirement 7............................................................................................................................6Requirement 8............................................................................................................................6Requirement 9............................................................................................................................7Requirement 10..........................................................................................................................7Requirement 11..........................................................................................................................7Appendix..................................................................................................................................10

CORPORATE ACCOUNTING2In order to analyze the annual report the chosen organisation listed on the AustralianStock exchange (ASX) is Telstra Corporation which is the largest telecommunicationsbusiness in Australia. Telstra Corporation is amedia and telecommunications company inAustralia that operates as well as facilitates networks of telecommunications, mobile, accessto internet, markets voice, pay television and other entertainment services along with theproducts.Requirement 1The Cash flow statement of the Telstra corporations is segregated into three categorieswhich are namely cash from operating activities, financing activities cash and investingactivities cash (Damodaran 2016). The items that are listed under the cash from operatingactivities are receipts from customers that amounts to $31,288m, payments to suppliers andemployees -$21,179m, government grants received $235 182m, net placement of deposits byAutohome Inc. all the amounts has taken place in the financial year of 2017. It can be seenfrom the statement that there has been decrease in net cash outflow from $ 8133 m in year2016 compared to $ 7775 m in year 2017. This fall in net cash flow is due to decrease inpayment made to suppliers and employees and fall in the expenditure on mining interests. Then comes the cash from investing activities is divided into three parts first includescash out flow before investments, second deals with the various investments and the thirdinvolves the cash outflows after the investments. The first segment consists of payments fromplant, property and equipment and intangible assets. The second part has the heads capitalexpenditures that totals to $5466m. The third segment shows a total cash outflow of $4279min 2017 that consists of the proceeds from the sales, investment and the interests. The totalcash flow from investing activities has been reduced in case of Telstra Corporation from$5926 in 2016 to $3496 in 2017. However, there has been a drastic increase in the cash flowin the financing activities. The amount increased from $3777m to $6104.it can be said that

CORPORATE ACCOUNTING3there has been more cash flow in the financing activities that deals with borrowing,repayments, share buy backs, finance cost and dividends. The cash flow statement of Telstra Corporation ends with the cash and cashequivalents changes during the year. The net cash and cash equivalents has been decreaseddrastically from $3550m in 2016 to $936m in 2017.thismay be due to the increase inexpenses more than the incomes. The table below in the appendix represents the individualcash flow items of the company of Telstra.Requirement 2Comparative analysis of three different categories of cash flow:Particular2015 in $m2016 in $m2017 in $mNet cash flow from operating activities 10,0669,5269,993Net cash flow from investing activities-5,692-4,279-2,207Net cash flow from financing activities-6,882-6,104-3,777The table above represents the comparative analysis of cash flow from operatingactivities, financing activities and investing activities. Net cash flow from operating activitiesremained more or less constant in the last three years. However, it declined from year 2015from $10,066 to $9,526 and $9,993 in year 2016 and 2017. There was net cash flow used infinancing activities in year 2017 at amount -$3,777compared to -$ 6,882 in year 2015. Onother hand, from investing activities, there was increase in cash flow to -$ 2,207 in year 2017as against -$5,692 in 2015.

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