University Accounting Principles Homework: Cash Flow and Financials

This assignment solution addresses key concepts in accounting principles, focusing on cash flow statement preparation and financial analysis. The solution includes answers to questions involving the direct method of preparing a cash flow statement, the reconciliation of profit and cash provided by operating activities, and the analysis of financial performance. The assignment provides detailed calculations for cash flow from operating, investing, and financing activities, along with an analysis of liquidity, profitability, and solvency ratios for companies like Coca-Cola and PepsiCo. The solution also includes a statement of profit or loss and a statement of financial position, illustrating the application of accounting principles in real-world scenarios. The document provides a comprehensive overview of financial reporting and analysis.

Running head: PRINCIPLES OF ACCOUNTING
Principles of Accounting
Name of the student:
Name of the university:
Author Note:

1PRINCIPLES OF ACCOUNTING
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................4
Answer to Question 4.................................................................................................................4

2PRINCIPLES OF ACCOUNTING
Answer to Question 1
(A)

3PRINCIPLES OF ACCOUNTING
(B) Reconciliation Statement

4PRINCIPLES OF ACCOUNTING
Answer to Question 2
(A) The amount of net cash provided by the operating activity for the year 2013 and 2012
is $33180000 and $37678000.
(B) The amount of increase or decrease in cash and cash equivalent at the end of the year
2013 and 2012 is ($23779000) and $ 14071000.
(C) From the cash flow statement of the year 2013, it can be stated there is a decrease in
cash flow for the payment of the borrowing which is $ 20506000.
(D) The total net cash used in the investing activity for the year 2013 is $ 30395000.
(E) The amount of interest paid in the year 2013 is that ($ 405000). The amount of
Income tax paid in the year 2013 is that ($ 11796000).

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Answer to Question 3
(A)
(B)
From the analysis of the Coca-Cola company in the financial year 2013 it can be interpreted
that liquidity ratio of the company is effective than the previous year and PepsiCo company
in the year 2013 (Zeff 2016). As per the profitability position of the Coca-Cola, the financial
performance is effective as the profit is higher than the other two compared company. In
order to further improve the profitability position of the company the upper level
management of the company must take certain effective measures.

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(C)
From the financial year 2013, compared to the PepsiCo Company compared to the
profitability, liquidity and the solvency ratio it can be interpreted that the financial position of
Coca-Cola is far better than the PepsiCo Company. The management need to take certain
policies regarding enhancing the profitability and the solvency ratio of PepsiCo company
(Hermason et al. 2016). The liquidity position of Coca-Cola for the financial year 2013 is
better than PepsiCo.

7PRINCIPLES OF ACCOUNTING
Reference
Zeff, S.A., 2016. Forging accounting principles in five countries: A history and an analysis
of trends. Routledge.
Hermason, R., Edwards, J. and Maher, M., 2016. Accounting Principles: Managerial
Accounting.
References