Corporate Assignment on Cash Flow Statement, Other Comprehensive Income Statement and Accounting for Corporate Income Tax

Running head: CORPORATE ASSIGNMENT
Corporate assignment
Name of the student
Name of the university
Author Note

1CORPORATE ASSIGNMENT
Table of Contents
Cash flow statement:..................................................................................................................2
(i)............................................................................................................................................2
ii)............................................................................................................................................3
Other comprehensive income statement:...................................................................................4
(iii)..........................................................................................................................................4
(iv)..........................................................................................................................................5
(v)...........................................................................................................................................5
Accounting for corporate income tax:........................................................................................5
(vi)..........................................................................................................................................5
(vii).........................................................................................................................................5
(viii)........................................................................................................................................6
(ix)..........................................................................................................................................6
(x)...........................................................................................................................................7
(xi)..........................................................................................................................................7
References:.................................................................................................................................8

2CORPORATE ASSIGNMENT
Cash flow statement:
(i)
The chosen organisation for this assignment is Virgin Australia. The selected
organisation is one of leading Airlines Company of Australia and it is a public listed
company with its code in the Australian Securities Exchange (ASX) as VAH. The cash flow
statement of this airline company is divided into three segments, which are, operating
activities, financial activities and investing activities. The following discussion is going to
focus on the items, which the chosen organisation has categorized under each heading.
Cash flows from operating activities:
The chief components under this heading are receipts from customers, finance income
received, payments of staffs and suppliers, financial costs paid and so on. The amount of
customer receipts can be obtained through credit sales (Hui, Nelson and Yeung 2016).
According to the annual report of Virgin Australia, this customer receipts has increased from
$ 5567.40 million in 2016 to $ 5657.10 million in 2017, based on its rigid credit policy.
Finance income, on the other side, represents the sum received for utilising money regarding
payment on demand during a specific point of time. In 2017, increment of this item can be
observed, as it has written off a section of the credit sales as uncollectible. The payments
related to suppliers and staffs are the amount, which the company has bought on credit and
remunerations to the employees. For Virgin Australia, this increasing trend of payments can
be seen in 2017 due to excess purchase from suppliers and increasing number of staffs.
Financial cost, on the other side, represents the obligations and for this selected company, it
has fallen in 2017 because of less interest payments for the undertaking loans.
Cash flows from financial activities:
The chief components, which are included under this heading are repayment of and
proceed from borrowings, distributions of equity and other items. The borrowings identify the