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Calculating Unlevered Cash Taxes

   

Added on  2019-09-21

22 Pages4534 Words79 Views
Finance
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Angel Sea ProductsFarm Pride ProductsMurray River FoodsAccounting & Finance
Calculating Unlevered Cash Taxes_1

Finance and Accounting1INTRODUCTION2FARM PRIDE PRODUCTS LTD.3EQUITY AND LIABILITY3REASONS FOR CHANGE IN EQUITY AND LIABILITY POSITION OF FPFL DURING THE LAST 3 YEARS4RETAINED EARNINGS4CURRENT LIABILITIES52018, 2017, 20165NON-CURRENT LIABILITIES5201852017520165CASH FLOWS STATEMENT5REASONS FOR CHANGES IN THE CASH FLOW STATEMENTS OF FFPL DURING THE LAST 3 YEARS8MAIN REASONS FOR THE VARIATION IN THE MAJOR 3 ACTIVITIES DURING THE PERIOD OF 3 YEARS9OPERATING ACTIVITY9Investing activity9Financing activity9OTHER COMPREHENSIVE INCOME STATEMENT10ACCOUNTING FOR CORPORATE INCOME TAX11Details of Tax expense shown in the latest financial statement11ANGEL SEA FOODS12EQUITY AND LIABILITY12EQUITY13LIABILITIES13REASONS FOR CHANGES IN THE CASH FLOW STATEMENTS OF ASHL DURING 2 YEARS15Operating activity16Investing activity16Financing activity16OTHER COMPREHENSIVE INCOME STATEMENT16ACCOUNTING FOR CORPORATE INCOME TAX16COMPARATIVE ANALYSIS OF DEBT AND EQUITY POSITION OF FPFL AND ASHL18
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Finance and Accounting2COMPARATIVE ANALYSIS OF CASH FLOWS UNDER 3 BROAD CATEGORIES FOR THE YEAR 201818Investing activity18Financing activity19Calculation of money charge per unit19FPFL ASHG Remarks19CALCULATION OF CASH TAX RATE20MURRAY RIVER FOODS22CONCLUSIONS23REFERENCE23INTRODUCTIONFarm Pride Foods restricted (FPFL), Angel ocean Foods restricted (ASFL) and Murray RiverFoods are chosen for this assignment, since each are ASX listed corporations and are within thesame trade, particularly food trade.FPFL is AN ASX listed company. In 2018 world wide web revenues of the corporate faded bytwelve try to the profit once tax faded by ninety four nada. The Board of administrators ar of theopinion that the rise in accessibility and provide of eggs in Australia had adversely affected thevolumes and margins of the corporate in F.Y. 2018. but the Board is assured that the adversefluctuation won't last for quite twelve months, then the trade can once more enter the expansionsection (Graham, 2009).ASFL was incorporated on twenty seventh Sept 2016, and was regenerate into a listed companyon twenty first Feb, 2018. In 2018, the Angel cluster has registered a growth in revenue of halfdozen.70 %. but the expansion in Profit once Tax was abundant higher at 31.48 consideredcompared with 2017. These figures don't seem to be comparable since the corporate wasincorporated solely within the year 2017 and didn't operate for the entire year. The Board of
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Finance and Accounting3administrators ar of the read, that the monetary position of the corporate is stable and it'll registergrowth in revenues and begin earning profits within the close to future. Business of the corporateis Oyster farming.FARM PRIDE PRODUCTS LTD.EQUITY AND LIABILITYEQUITY2018 ($ ‘000)2017 ($’000)2016 ($’000)REMARKSContributed Capital29,57829,578 29,578Fully paid up ordinary shares.Retained Earnings17,56517,062 8,581Accumulated net profits after tax.Total47,14346,64038,159Represents funds belonging to the ordinary shareholders.LIABILITIESCurrent LiabilitiesTrade and other Payables12,62611,99611,788It also includes accruals payable within 1 year. Borrowings 1,970 327 895Bank overdraft, bank loan and equipment finance repayable within 1 year. Provisions 1,937 2,057 1,871Annual Leave and Long Service Leave likely to be availed by employees within 1 year.Current Tax PayableNil 1,115 2,121Self explanatory.Total Current Liabilities16,53315,49516,675Summation of all liabilities and provisions payable within 12 months.Non -Current LiabilitiesBorrowings10,053 5 244Bank loan and equipment finance repayable after 1 year.
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Finance and Accounting4Provisions 230 143 158Long service leave benefits likely tobe availed by employees after 1 year.Total Non- Current Liabilities10,283 148 402Summation of all liabilities and provisions payable after 12 months.TOTAL LIABILITIES26,81615,64317,077It is the sum of all current and non- current liabilities.REASONS FOR CHANGE IN EQUITY AND LIABILITYPOSITION OF FPFL DURING THE LAST 3 YEARSRETAINED EARNINGS There can be observed a decrement or decline in retained earnings in FY 2018 and it took placedue to large decrease in profit factor of the company. However in 2017, there was a comparativegrowth in retained earnings.CURRENT LIABILITIES 2018, 2017, 2016In 2018, there has been an increase in trade creditors and other associated payables and hence, inspite of a decrement in revenues by more than twelve percent, the situation took place. Due toconstraints, payments needed to be postponed a bit to the due creditors. Decrease took placeowing to repayment of borrowings on a short-term basis and due to the previous year's liabilityof taxes. However, repayment of borrowings was not delayed in case of 2016. NON-CURRENT LIABILITIES2018Thus has seen an increment as the company is likely to form a long bond with Westpac.
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Finance and Accounting52017There is a decrease due to repayment of the long term bond.2016There is a decrease due to repayment of the long term bond.CASH FLOWS STATEMENTFPFL2018 ($‘000)2017 ($’000)2016 ($’000) REMARKSCash flow from operating activities.Receipts from customers87,276 96,925 94,352Cash receipts, excluding rebates and discounts.Payments to suppliers and employees (84,140)(84,348)(76,898)Cash payments to suppliers (excludingrebates and discounts) and cash payments to employees (excluding unpaid salaries and other unpaid employee benefits)Finance costs (331) (150)(413)Does not include finance costs payable. Income Tax paid (2,343)(4,839)(3,365)Income tax paid in cash pertaining to current and previous financial years.Interest Received 43 7311Does not include interest receivable. Net Cash provided by operating activities.505 7,66113,687Self explanatory.Cash flow from
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