Cash Flow Analysis Report: Corporate Accounting of Three Firms

This report provides an analysis of the cash flow statements of three companies: BHP Limited, Santos Limited, and Funtastic Limited. The report examines the cash flows from operating, financing, and investing activities for each company, highlighting their strengths and weaknesses. BHP Limited demonstrated strong operating cash flows, while Santos Limited managed its funds effectively. Funtastic Limited faced challenges in generating positive cash flows from operations and investments. The report summarizes the utility of income statements and cash flow statements for businesses and concludes that, despite negative cash flows in various operations, BHP Ltd. performed better in generating cash from operating activities. References from Kristanti and Herwany (2017) and Unerman, Bebbington, and O’dwyer (2018) are provided.

Title
CORPORATE ACCOUNTING

Introduction
This is massively significant for businesses to preserve their cash-flows stable at positive
level so that entites can brace themselves to repay various forms of shorter-term liabilities. The
efficiency of cash flows role shall be measured by means of cash flow statements prepared by
three separate tasks known as operating, finance and investment activities. The Power Point
demonstration is centered on an overview of the cash flows situation of three separate
companies listed. Thorough study of cash flows from various activities is clarified under PPT.
And also the core strengths of each organization, three cash flows operations are described in
conjunction with the performance of every corporation.

Summary of part A
Part A may be summed as to the utility of income statements as well as cash flow
statements for businesses to have consistent financial results statistics. Through making these
two claims, investors will take key measures to determine whether or not it should invest.

Summary of part B
In keeping with the different facets of cash flows addressed by these three companies, it is
reported that there are some strengths and disadvantages within each organization that are
described in this way:
BHP Limited: The operating cash flows of this entity were brilliant in their efficiency as they
produced better inflows. Except for this, two other cash flows operations confronted
enormous cash outflows which led to adverse cash outflows at year's end.

Continue
 Santos Limited- As discussed in report, this organisation produced cash flows through three
different categories of activities. In addition, they have controlled their funds to allow
successful spending on money. In addition, in two other cash-flows activities, they was
unable to generate cash inflows.
 Funtastic Limited – The overall cash-flow performance of this business was weak in almost
all of the years, because as operating and investment operations generated large cash
outflows. They have, however, adequately controlled their loans and dividends, contributing
to a healthy cash balance in funding operations.

Overall cash flow of each company
2017 (Data in $
million)
2018 (Data in $
million)
2019 (Data in $
million)
BHP limited 9133 (out flow) 10891 (out flow) 20528 (out flow)
Santos limited 804 (out flow) 95 (In flow) 238 (out flow)
Funtastic limited 92 (out flow) 67 (In flow) 253 (out flow)
BHP limited Santos limited Funtastic limited
0%
20%
40%
60%
80%
100%
-9133
-804
-92
-10891
95
67
-20528 -238 -253
Net cash flow
2017 (Data in $ million) 2018 (Data in $ million) 2019 (Data in $ million)

Best company among three
In line with the aforementioned review, this can be inferred that in almost all years these
companies have net-cash outflow. Cash from operating activates reported by Funtastic Ltd
was negative during said period while BHP and Santosh reported inflows from operating-
activities. Overall comparative trend shows that BHP has been performed well.

Conclusion
Based on the different facets of PPT described above, it can be inferred that there are
negative cash flows from different operations in all three businesses. BHP Ltd is better in
generating cash from operating activities in comparison. Although Funtastic Limited has
performed effectively in generating cash from investment activities and Santos Limited has
generated cash inflows from financing activities.

References
Kristanti, F.T. and Herwany, A., 2017. Corporate governance, financial ratios, political risk
and financial distress: A survival analysis. Accounting and Finance Review (AFR) Vol, 2(2).
Unerman, J., Bebbington, J. and O’dwyer, B., 2018. Corporate reporting and accounting for
externalities. Accounting and business research, 48(5), pp.497-522