Corporate Accounting of Retail Food Group

Running head: CORPORATE ACCOUNTING FOR RETAIL FOOD GROUP
Corporate Accounting of Retail Food Group
Name of the Student:
Name of the University:
Author’s Note:

1CORPORATE ACCOUNTING OF RETAIL FOOD GROUP
Table of Contents
Evaluation of Cash flow statement:...........................................................................................2
Answer to (i):.........................................................................................................................2
Answer to (ii):........................................................................................................................4
Evaluation of income statement:................................................................................................5
Answer to (iii):.......................................................................................................................5
Answer to (iv):.......................................................................................................................5
Answer to (v):........................................................................................................................6
Evaluation of corporate income tax accounting:........................................................................6
Answer to (vi):.......................................................................................................................6
Answer to (vii):......................................................................................................................7
Answer to (viii):.....................................................................................................................7
Answer to (ix):.......................................................................................................................8
Answer to (x):........................................................................................................................8
Answer to (xi):.......................................................................................................................9
References:...............................................................................................................................10
Appendices...............................................................................................................................12

2CORPORATE ACCOUNTING OF RETAIL FOOD GROUP
Evaluation of Cash flow statement:
Answer to (i):
Cash flow statement is considered as a vital financial statement for a firm that
indicates inflows and outflows of cash within the business. The paper is also focussed on
offering better viewpoint on the major items listed within the statement of cash flow of Retail
Food Group (Arnold, Harris and Liu 2016). There are three important aspects mentioned
within the statement of cash flow for the company “Retail Food Group” that is listed within
the Australian Stock Exchange or ASX that is elaborated under:
Net cash flows from operations:
The section includes four vital items for Retail Food Group that includes consumer
recepts, employee payments, interest payments, suppliers and few more. The consumer
recepts can be considered as those amounts which are attained in case sales are carried out on
credit by the company. In case of Retail Food Group, such amount is observed to get
increased in the year 2016 to 2017 from $332,754,000 to $456,000,000 (Christ and Burritt
2017). This is due to the reason that the company was involved in high credit sales. In the
same way, supplier payments indicate the settled amount for related products that were
purchased by means of credit. This is observed to get elevated in case of Retail Food Group
because of few further purchases in order to address the increasing consumer demand.
Interest payments are deemed to be the amounts that are required to be paid by the company
in order to deal with the undertaken short term loans. This is observed to get increased in the
year 2017for the reason that it has increased loans in order to acquire additional inventories.
Net cash flows employed within investing activities:

3CORPORATE ACCOUNTING OF RETAIL FOOD GROUP
The reported items within this part of the report includes the payments along with
proceeds from plant, property and equipment, interest received along with payment of
intangible asset. Plant and equipment payment can be understood as the incurred expense for
purchasing or acquiring such items. Considerable increase in such item might be gathered in
the year 2017. This is because of the reason that Retail Food Group has put increased
emphasis on the asset base increase. In consideration to the same, decreased proceeds from
such item is observed to get developed in the year 2017 (Rfg.com.au. 2018). In addition,
payments related with the intangible assets indicate the amount that the company has
experienced for attaining necessary intangible assets. Such expense is observed to decline a
bit in the year 2017 and finally, payment of interest is deemed as the received amount as
interest from the carried out investments. Increase in this item is present within the company
for the reason that cash flows are realised in case of capital projects.
Net cash flows employed within financing activities:
Within this aspect, the major items includes the proceeds attained from the shares
issuance, proceeds from along with the borrowings repayment, payment of dividend as well
as debt and share issuance payment. The issuance related with the share proceeds might be
recognised as the income attained from the securities issuance. It is observed to attain amount
of around $35,600,000 in the year 2017; conversely, nothing was attained in the year 2016 to
be the proceeds of such issuance. Such borrowing proceeds are deemed to increase in the year
2017 because of high amount of investments. This is due to the fact that the company has
implemented the approach of borrowings repayment since the year 2015. In addition,
enhancement in the payment of dividend might be recognised over the future years with great
increase in the company’s net earnings.