Financial Statement Analysis of Abundant Produce Limited: A Comprehensive Overview

HI5020 Corporate Accounting
1

Contents
Introduction.................................................................................................................................................3
Cash Flow Statement...................................................................................................................................4
Other Comprehensive Income Statement....................................................................................................7
Accounting for Corporate Income Tax........................................................................................................7
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
2

Introduction
Abundant Produce Limited is the Australian ASX listed hybrid plant breeder organization. It
basically focuses on development of the new varieties which are of the food crops specially the
green house vegetables with the aim of producing the better variety with the superior flavors so
as to gain the competitive advantage. This report basically deals with the analysis of the financial
statements of Abundant Produce Limited so that their financial position in the competitive
market can easily be analyzed. With that the analyses of the cash flow statement is done so as to
determine all those items which are listed in this statement and what does they mean. It also
examines the corporate taxes of the Abundant Produce Limited so that knowledge about the
treatment of taxes can be gained. Beside this the report also explains the various items which are
listed in the other comprehensive income statement.
3

Cash Flow Statement
I. In the cash flow statement of the Abundant Produce limited various items are listed
such as:
Cash Flows from Operating Activities: It is the accounting term which determines the
amount that company brings from its regular business activities. For example: sale and the
manufacturing of goods and services (Mgammal and Ismail, 2015). The items included in the
operating activities are:
o Receipt from customers: It is the receipt that is received from the customers for the
cash sale of goods and services.
o Payment to suppliers and employees: These include the amount or the money that
is paid to the suppliers by the organization (Safonova, et. al., 2016).
o Interest Received: It is amount which is received in the form of income by the
organization on the operating activities.
o Interest Paid: This means that the tax expense is already included in the net income
amount and will be adjusted to the amount of the interest paid in cash.
Cash Flows from Investing Activities: It shows all the changes in the company’s cash position
by doing the investment in the financial markets and operating subsidiaries (Miletić, 2014). The
items in this activity are:
o Payments for property, plant and equipments: These include all the payments which
have been done so as to acquire long lived physical assets such as plant, property and
equipments (Miletić, 2014).
o Payments for research and development: The payments which are made by the
Abundant Produce Limited for doing the research of the agricultural products used for
production so that the market share can be attained (Gazzola and Amelio, 2014).
Cash Flows from Financing Activities: It is the category in the cash flow statement of the
company that accounts for the external activities through which the firm can raise capital
(Gazzola and Amelio, 2014). The items in the financing activities of the Abundant Produce
Limited are:
o Proceeds from issue of shares: These are the proceedings of the new shares which are
issued by the organization up to the full amount of share capital.
4