Corporate Accounting Assignment (Solution)
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Added on 2021-06-15
Corporate Accounting Assignment (Solution)
Added on 2021-06-15
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Running head: CORPORATE ACCOUNTINGCorporate AccountingUniversity NameStudent NameAuthors’ Note
2CORPORATE ACCOUNTINGTable of ContentsRequirement (i)..........................................................................................................................2Requirement (ii).........................................................................................................................4Requirement (iii)........................................................................................................................5Requirement (iv)........................................................................................................................5Requirement (v).........................................................................................................................5Requirement (vi)........................................................................................................................6Requirement (vii).......................................................................................................................7Requirement (viii)......................................................................................................................7Requirement (ix)........................................................................................................................7Requirement (x).........................................................................................................................8Requirement (xi)........................................................................................................................8References................................................................................................................................10
3CORPORATE ACCOUNTINGCash Flow StatementRequirement (i)List of each item reported in the statement of flow of cashThe statement of flow of cash of the selected corporation Qantas Airways comprises of usualthree sections namely flow of cash from operating, investing as well as financing activities.Essentially, this reflects the net cash and equivalents of cash. Particularly, items that arementioned under the operating activities include depreciation, adjustments in income,alterations in the accounts receivables, changes in inventory as well as transformations inliability. Essentially, it can be hereby mentioned that the flow of cash of each one of the itemhas declined. In essence, this is owing to higher generation of earnings that is specificallyinflow of cash (Tschopp & Nastanski, 2014). Thereafter, investing actions handle capital expends, investments as well as cashexpenditures. In essence, flows of cash from particularly investing actions include paymentsfor specifically property, plant as well as equipment (PPE) and intangible assets, interestdisbursements and at the same time capitalised on qualifying assets (Sierra‐García et al.,2015). The investing actions include disbursements for acquisitions of particularly controlledentities as well as net of cash attained and disbursements for particularly investments underequity methods. Again, net receipts are acquired for aircraft that is assigned to investmentmentioned under equity method. Again, inflow of cash can be observed from proceedsacquired from disposal of particularly plant, property as well as equipment (Siew, 2015).Further, inflow of cash can also be acquired from disposal of controlled entities, net loanrepayment from specifically investments under equity method and refinancing of operatinglease of aircraft. However, cash derived from operations include cash receipts from customersand cash payments to different suppliers as well as employees (Schaltegger & Burritt, 2017).
4CORPORATE ACCOUNTINGMoreover, cash flows generated from financing activities include disbursements forparticularly capital return, share buy-back and treasury shares and receipts for proceeds fromparticularly borrowing, proceeds from specifically sale, finance leaseback of different non-current assets (Saeidi et al., 2015). Discussion of changes in each of the items for the firm over the previous yearEssentially, net flow of cash from mainly operating actions has decreased to $2704 million in2017 from $2819 million in 2016. This is mainly due to decrease in interest payment, furtherincrease in payments of cash and decrease in payment for cash for redundancies as wellassociated costs. Again, the net cash that is used in investing activities include shows anegative figure replicating cash outflow. The net cash outflow for investing actions hasincreased from ($1923 million) to around ($2046 million). This is mainly due to increase ininterest paid as well as capitalised on different qualifying assets and specifically decrease inproceeds from particularly disposal of particularly plant, property as well as equipment (Reid& Myddelton, 2017). In case of financing activities, figure for net cash used is a negativefigure that is ($854 million), replicating a cash outflow. However, the cash outflow hasdeclined to ($854 million) from ($1825 million) due to decrease in payments for payments ofshare buy backs and repayments for borrowings. However, at the end, the figure registeredfor cash as well as cash equivalents stand at $1775 million in comparison to $1980 million.This shows decrease in cash and cash equivalents at the ending of the year reflecting decreasein cash inflow.
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