Holmes Institute HI5020 Corporate Accounting Cash Flow Analysis Report

This report provides an analysis of the cash flow positions of three Australian companies: BHP Limited, Santos Limited, and Funtastic Limited. The analysis focuses on the operational, financial, and investing activities of each company, examining their cash inflows and outflows over a period of time. The report summarizes the strengths and weaknesses of each company based on their cash flow performance, highlighting the net cash flow positions for each year. The report provides a comparative analysis to identify the best-performing company in terms of cash flow, and concludes with an overview of the companies' performance in different cash flow activities. The data in the report show that all three companies experienced negative cash flow in most years. The report includes references to support the analysis and conclusions.

Title
CORPORATE ACCOUNTING

Introduction
This is important for companies to keep their cash flows positive so that they can
prepare themselves to pay different types of short term liabilities. The performance of
cash flow position is assessed by help of cash flow statement which is prepared by
three various activities named as operational, financial and investing. This power
point presentation is based on analysis of cash flow position of three different
Australian companies. Under the PPT, detailed analysis of cash flow from distinct
activities is explained. As well as strength of each company is also mentioned which
is explained in accordance of performance of each company in three activities of cash
flow.

Summary of part A
From part A, it can be summarized that income statement and cash flow statements
are too useful for companies in order to offer distinct information about financial
performance. By help of these two statements, investors can take crucial steps in
order to take decision whether they should make investment or not.

Summary of part B
In accordance of discussed various aspects of cash flow of mentioned three
companies, this can be stated that each company has certain strengths and
weaknesses which are explained below in such manner:
 BHP limited: This company’s performance was excellent in terms of operational
cash flows as they generated higher inflows. Except this, under remaining two
activities of cash flows company faced huge cash outflows that resulted in
negative cash outflow at the end of year.

Continue
 Santos limited- Similar to above company, this business also generated cash
inflows from three various kinds of operations. Along with they managed their
funds in order to make effective capital expenditures. Apart from it, they failed to
produce cash inflows in two other activities of cash flow.
 Funtastic limited- This company’s performance was poor in all years as there was
huge cash outflow under operational and investing activities. Though, they
managed their debts and dividends in an appropriate way which resulted in
positive cash flow under financing activities.

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%
10%
20%
30%
40%
50%
60%
70%
80%
90%
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 accordance of above done analysis, it can be find out that all companies are having
net cash outflow in most of the years. BHP limited failed to produced net cash inflow
in any year. While Santos and Funtastic limited produced cash inflow in year 2018.
In comparison of both of these companies’ Funtastic limited is better company.

Conclusion
On the basis of above discussed various aspect of PPT, this can be concluded that all
three companies had negative cash flow from various activities. In comparative
manner, BHP limited is better under cash flow operating activities. While Funtastic
limited is good in terms of financing activity as well as Santos limited performed well
in investing activities.

References
Güleç, Ö.F. and Bektaş, T., 2019. Cash Flow Ratio Analysis: The Case Of Turkey.
Paolone, F., 2020. Concluding Remarks: The Importance of Cash Flow Statement.
In Accounting, Cash Flow and Value Relevance (pp. 69-81). Springer, Cham.