HI5020 Corporate Accounting: Analyzing the Financial Position of Salt Lake Potash Limited

HI5020 Corporate Accounting
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Contents
Introduction.................................................................................................................................................3
Cash Flow Statement...................................................................................................................................4
Other Comprehensive Income Statement....................................................................................................7
Accounting for Corporate Income Tax........................................................................................................8
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Appendix...................................................................................................................................................13
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Introduction
The main aim of the report is to examine the financial position of the company by analyzing the
financial accounts. The financial accounts such as cash flow statement, balance sheet and the
income statement are done so that the practical implementation of the same can be evaluated.
The various items which are listed in the cash flow statement are heighted so that the better
understanding about the can be depicted. The corporate taxes are also shown which will help in
evaluating the treatment of various taxes and their implications in the financial statements of the
organisation. The Salt Lake Potash Limited is the energy limited organisation which basically
aims at the development of resource projects. It holds salt projects in South Australia, West
Australia and the territories of Northern. The difference between the tax expenses and the tax
payables are also depicted which will provide the information related to the factors which lead to
the difference between both.
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Cash Flow Statement
I) The cash flow statement basically tracks the inflow and the outflow of the cash in the
organisation so that the revenues can be maximized (Sözbilir, et. al., 2015). The cash
flow of the Salt Lake Potash Limited includes the following items:
Operating Activities: Operating activities helps in analyzing that the business activities which
are performed in the organisation are profitable for the business or not (Laux, 2013). It includes
activities of distribution and marketing. Operating activities items are:
Payments to suppliers and employees: These are the amounts which are paid by the
organisation to the suppliers from which the goods are purchased so as to run its operations
(Laux, 2013). The payment made to the employees is the payment which is made as salaries for
their services which they have rendered (Lin, et. al., 2017).
Exploration Investments Scheme Received: The amount which is received as the investment
scheme for the exploration activities are treated as the operating activities as these also impact
the operations of the business (Laux, 2013).
Interest Received: The amount which is received in the form of interest to the organisations for
any of the services and securities which are purchased this is generally treated in the income
statement but it shows the change in cash flow so it is depicted in the cash flow statement (Lin,
et. al., 2017).
Investment Activities: It can be seen from the cash flow statement that the company has not
made of the investments which means that the income in the operations is received from the sale
of the goods which are produced by the organisation (Laux, 2013). The investment activities are
those which is done so that in future better returns can be entertained. The one and only one item
in the investing activities is:
Payments for property, plant and equipment: These are the amounts which are paid by the
organisation for acquiring the property, plant and the equipments (Lin, et. al., 2017). These are
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