Corporate Accounting Assignment Help

2018

2017

2016

Cash Flows from Operating Activities

AU$000

AU$000

AU$000

Receipts from customers

46,463

61,731

94,773

Payments to suppliers and employees

(54,777)

(60,897)

(98,145)

Cash (utilised)/generated from operations

(8,314)

834

(3,372)

Income taxes refunded/(paid)

49

(25)

(163)

Interest and other costs of finance paid

(1,917)

(3,559)

(3,794)

Net cash outflow from operating activities

(10,182)

(2,750)

(7,329)

Cash flows from investing activities

Interest and other investment income received

2

439

651

Payments for plant and equipment

(145)

(888)

(884)

Payments for other intangible assets

(281)

(540)

(325)

Proceeds from sale of international subsidiary

126

-

-

Net cash outflow from investing activities

(298)

(989)

(558)

Cash flows from financing activities

Proceeds from borrowings

2,630

3,647

7,457

Repayment of commercial bills

-

-

(1,000)

Proceeds from share issue

8,355

-

1,111

Costs from share issue

(438)

-

-

Net cash inflow from financing activities

10,547

3,647

7,568

Net increase/(decrease) in Cash Held

67

(92)

(319)

Cash and cash equivalents at the beginning of the year

664

764

904

Effects of exchange rate changes on the balance of cash held in

foreign currencies

(13)

(8)

179

Cash and cash equivalents at the end of the year

718

664

764

2018

US$M

2017

US$M

Restated

2016

US$M

Restated

Operating activities

Profit before taxation

14,751

11,137

1,791

Adjustments for:

Depreciation and amortisation expense

6,288

6,184

6,210

Impairments of property, plant and equipment, financial assets

and intangibles

333

193

186

Net finance costs

1,245

1,417

1,013

(Profit)/loss from equity accounted investments, related

impairments and expenses

(147)

(272)

2,104

Other

597

194

467

Changes in assets and liabilities:

Trade and other receivables

(662)

267

1,387

Inventories

(182)

(687)

521

Trade and other payables

719

512

(1,272)

Provisions and other assets and liabilities

7

(333)

(316)

Cash generated from operations

22,949

18,612

12,091

Dividends received

709

636

301

Interest received

290

164

128

Interest paid

(1,177)

(1,148)

(829)

Settlement of cash management related instruments

(292)

(140)

−

Net income tax and royalty-related taxation refunded

17

337

435

Net income tax and royalty-related taxation paid

(4,935)

(2,585)

(2,286)

Net operating cash flows from Continuing operations

17,561

15,876

9,840

Net operating cash flows from Discontinued operations

900

928

785

Net operating cash flows

18,461

16,804

10,625

Investing activities

Purchases of property, plant and equipment

(4,979)

(3,697)

(5,707)

Exploration expenditure

(874)

(966)

(752)

Exploration expenditure expensed and included in operating cash flows

641

610

419

Net investment and funding of equity accounted investments

204

(234)

(217)

Proceeds from sale of assets

89

529

93

Proceeds from divestment of subsidiaries, operations and joint

operations, net of their cash

34

− 187

166

Other investing

(141)

(153)

(20)

Net investing cash flows from Continuing operations

(5,060)

(3,724)

(6,018)

Net investing cash flows from Discontinued operations

(861)

(437)

(1,227)

Net investing cash flows

(5,921)

(4,161)

(7,245)

Financing activities

Proceeds from interest bearing liabilities

528

1,577

7,239

(Settlements)/proceeds from debt related instruments

(218)

36

156

Repayment of interest bearing liabilities

(4,188)

(7,114)

(2,781)

Purchase of shares by Employee Share Ownership Plan (ESOP)

Trusts

(171)

(108)

(106)

Dividends paid

(5,220)

(2,921)

(4,130)

Dividends paid to non-controlling interests

(1,582)

(575)

(62)

Net financing cash flows from Continuing operations

(10,851)

(9,105)

316

Net financing cash flows from Discontinued operations

(40)

(28)

(32)

Net financing cash flows

(10,891)

(9,133)

284

Net increase in cash and cash equivalents from Continuing

operations

1,650

3,047

4,138

Net (decrease)/increase in cash and cash equivalents from

Discontinued operations

(1)

463

(474)

Cash and cash equivalents, net of overdrafts, at the beginning of

the financial year

14,108

10,276

6,613

Foreign currency exchange rate changes on cash and cash

equivalents

56

322

(1)

Cash and cash equivalents, net of overdrafts, at the end of the financial year

15,813

14,108

10,276

2018

US$M

2017

US$M

2016

US$M

Cash flows from operating activities

Receipts from customers

3,740

3,217

2,708

Dividends received

6

12

12

Pipeline tariffs and other receipts

106

66

60

Payments to suppliers and employees

(1,816)

(1,611)

(1,600)

Restoration expenditure

(36)

(37)

(17)

Exploration and evaluation seismic and studies

(98)

(71)

(68)

Royalty and excise paid

(85)

(57)

(34)

Borrowing costs paid

(194)

(254)

(226)

Income taxes paid

(69)

(28)

(17)

Royalty-related taxes paid

(13)

(15)

(4)

Other operating activities

37

26

26

Net cash provided by operating activities

1,578

1,248

840

Cash flows from investing activities

Exploration and evaluation assets

(66)

(146)

(128)

Oil and gas assets

(490)

(483)

(500)

Other land, buildings, plant and equipment

(10)

(5)

(4)

Acquisitions of oil and gas assets

(10)

(49)

(18)

Proceeds from disposal of non-current assets

26

145

447

Acquisition of subsidiary, net of cash acquired

(1,933)

-

-

Costs associated with acquisition of subsidiaries

(10)

-

-

Proceeds from disposal of subsidiaries

126

-

Borrowing costs paid

(6)

(6)

(20)

Other investing activities

-

10

18

Net cash used in investing activities

(2,373)

(534)

(205)

Cash flows from financing activities

Dividends paid

(73)

-

(43)

Drawdown of borrowings

1,193

783

-

Repayment of borrowings

(220)

(2,442)

(147)

Net proceeds from issues of ordinary shares

-

149

733

Purchase of shares on-market (Treasury shares)

(10)

(8)

Net cash provided by/(used in) financing activities

890

(1,518)

543

Net increase/(decrease) in cash and cash equivalents

95

(804)

1,178

Cash and cash equivalents at the beginning of the

period

1,231

2,026

839

Effects of exchange rate changes on the balances of

cash held in foreign currencies

(10)

9

9

Cash and cash equivalents at the end of the period

1,316

1,231

2,026

Marking criteria

Weighting

Abstract

1%

List of content & overall presentation of the assignment

1%

Introduction

1%

Do the relevant research to critically examine the relative information content of income statement and statement of cash flows. Why do investors find both

income statement and statement of cash flows useful?

5%

What are the major sources of cash for each firm? What are the major uses of

cash for each firm?

1%

What was the trend in cash flow from (continuing) operations for each firm?

1%

Was cash flow from operations greater than or less than net income? Explain in detail the major reasons for the difference between these two figures. (Answer

this question using only Appendix B: Cash flow statement for BHP Limited).

1%

Was the firm able to generate enough cash from operations to pay for all of its

capital expenditures?

1%

Did the cash flow from operations cover both the capital expenditures and the

dividend payments made by the firm (if any)?

1%

If the firm has generated excess cash from operations, how did the firm invest the excess cash? If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends?

1%

Did the firm use the working capital (current asset and current liability) accounts

other than cash and cash equivalents as sources of cash, or uses of cash? (Answer this question using only Appendix B: Cash flow statement for BHP Limited).

2%

What other major items affected cash flows?

1%

What was the trend in capital expenditures for each firm?

1%

What was the trend in dividends (if any) for each firm?

1%

What was the trend in net borrowing (proceeds from borrowing less payments of

short- and long-term debt)?

1%

What was the trend in working capital accounts? (Answer this question using only

Appendix B: Cash flow statement for BHP Limited).

1%

Critically evaluate the financial strength of each of the three companies based on

the evidence presented in the Statement of Cash Flows.

5%

If you are asked to evaluate these three companies for lending purposes, which

of the three companies you will select for lending? Explain Why.

2%

Conclusion

1%

References

1%

TOTAL Weight

30%

Excellent

Very Good

Good

Satisfactory

Unsatisfactory

Do the relevant research to critically examine the relative information content of income statement and statement of cash flows. Why do investors find both income statement and statement of cash flows useful?

Demonstrate outstanding knowledge beyond requirements on the topic.

Extensive relevant research Independent and in-depth analysis.

Issues and factors are presented and analyzed in a logical manner.

Demonstrate very good knowledge on the topic.

Substantial relevant research.

Issues are discussed adequately based on sufficient research.

Demonstrate good knowledge on the topic.

Adequate relevant research.

Discussed the issue based on some research and facts.

Scopes for improvement

remain.

Demonstrate basic knowledge on the topic.

Some relevant research.

Meet the requirements but with limited information and discussion.

Limited references.

Demonstrate poor knowledge on the topic.

Limited and/or no relevant research.

The answers do not meet the basic requirement as no factual discussion is provided.

No reference.

Broad and credible

sources of references have been cited using proper referencing

style.

Adequate

references in proper referencing style.

Adequate references in proper referencing

style.

What are the major sources of cash for each firm? What are the major uses of

cash for each firm?

Major sources of cash and major uses of cash are identified and

discussed in detail.

Major sources of cash and uses of cash are identified.

Major sources of cash and uses of cash are identified with

minor errors.

Major sources of cash and uses of cash are identified with

material errors.

No clear attempt is made to identify the major sources of cash and uses of

cash.

Detailed

discussion is provided with minor errors.

Basic discussions is attempted with

minor errors.

Basic discussions is attempted with

material errors.

No discussion is provided.

What was the trend in cash flow from (continuing) operations for each firm?

Trends in the cash flows from continuing operations are identified and discussed adequately.

Demonstrate outstanding knowledge beyond requirements on the topic.

Independent and in-depth analysis.

Issues and factors are presented and analyzed in a logical manner.

Trends in the cash flows from continuing operations are identified.

Discussion is not comprehensive.

Demonstrate very good knowledge on the topic.

Issues are discussed adequately based on sufficient

research.

Trends in the cash flows from continuing operations are identified with minor errors.

Basic discussion has been provided with minor errors.

Demonstrate good knowledge on the topic.

Trends in the cash flows from continuing operations are identified with material errors.

No discussion is provided.

Demonstrate basic knowledge on the topic.

Meet the requirements but with limited information and discussion.

No realistic attempt is made to identify the trend.

No discussion is provided.

Demonstrate poor knowledge on the topic.

Was cash flow from operations greater than or less than net income? Explain in detail the major reasons for the difference between these two figures. (Answer this question using only Appendix B: Cash flow statement for BHP Limited).

Shows a complete comprehension of the relationship between net income and cash flows from operations.

The reasons for the differences between these two figures are identified and discussed in detail.

The relationship between net income and cash flows from operations are explained.

The reasons for the differences between these two figures are identified and discussed with minor errors.

The relationship between net income and cash flows from operations are explained.

Identification of the reasons of the differences between these two figures contains material errors.

A reasonable attempt is made to identify the relationship between net income and cash flows from operations.

A reasonable attempt is made to identify the reasons of the differences between these two figures but fail to completely grasp the issue.

Errors are identified in the answer.

A poor attempt is made to explain the relationship between net income and cash flows from operations.

Was the firm able to generate enough cash from operations to pay for all of its capital expenditures?

Identify all cash flows from operation with specific mention of whether it is positive or negative.

Identify all capital expenditures and synthesise the adequacy of cash flows from operations to cash required for capital expenditures.

Identify all cash flows from operation with specific mention of whether it is positive or negative.

Identify all capital expenditures.

Unable to explain whether the adequacy of cash flows from operations is adequate for cash required for capital expenditures.

Identify all cash flows from operation with specific mention of whether it is positive or negative.

Identify most capital expenditures.

Unable to explain whether the adequacy of cash flows from operations is adequate for cash required for capital expenditures.

A reasonable attempt is made to identify cash flows from operation with specific mention of whether it is positive or negative.

Identify some capital expenditures.

Unable to explain whether the adequacy of cash flows from operations is adequate for cash required for capital expenditures.

Some errors are identified in the answer.

No reasonable attempt is made to identify cash flows from operation with specific mention of whether it is positive or negative.

Fail to identify most capital expenditures.

Unable to explain whether the adequacy of cash flows from operations is adequate for cash required for capital expenditures.

Material errors are identified in the answer.

Did the cash flow from operations cover both the capital expenditures and the dividend payments made by the firm (if any)?

Clearly demonstrate the sources of fund used for capital expenditures and dividend.

Demonstrate outstanding knowledge beyond requirements on the topic.

Demonstrate the sources of fund used for capital expenditures and dividend. Minor errors.

Demonstrate very good knowledge on the topic.

Address the question but unable to clearly indicate whether the cash flows from operations were enough for capital expenditure and dividend payment.

Demonstrate good knowledge on the topic.

Answer the question correctly with a simple “yes” or “No” answer.

No discussion is provided.

Demonstrate basic knowledge on the topic.

Incorrectly answered the question with a simple “yes” or “No” answer.

No discussion is provided.

Demonstrate poor knowledge on the topic.

If the firm has generated excess cash from operations, how did the firm invest the excess cash? If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends?

Clearly identify and explain whether the firm has generated excess cash flows.

Present a good discussion on free cash flows and uses of excess cash flows.

Identify and explain whether the firm has generated excess cash flows.

Present a reasonable discussion on the concept of free cash flows and uses of excess cash flows.

Identify and explain whether the firm has generated excess cash flows.

Present a discussion on the concept of free cash flows and uses of excess cash flows with errors.

Identify and explain whether the firm has generated excess cash flows with some errors.

No discussion is made about free cash flows.

The discussion on uses of excess cash

flows is unclear.

Incorrectly identify and explain whether the firm has generated excess cash flows.

No discussion is made about free cash flows.

No discussion or incorrect discussion is made on uses of excess cash flows.

Did the firm use the working capital (current asset and current liability) accounts other than cash and cash equivalents as sources of cash, or uses of cash? (Answer this question using only Appendix B: Cash flow statement for BHP Limited).

Demonstrate a clear understanding of how changes in current assets and current liabilities can be source of fund and/or uses of fund.

Correctly explain whether the firm has used working capital items as sources of operating cash flows or uses of operating cash flows.

Present a good discussion on whether the firm has used current assets and current liabilities as sources of fund or uses of fund.

Present an item-wise discussion on each current assets and current liability items with minor errors.

Present a reasonable discussion on whether the firm has used current assets and current liabilities as sources of fund or uses of fund.

Present an item-wise discussion on each current assets and current liability items with material errors.

Present a discussion on whether the firm has used current assets and current liabilities as sources of fund or uses of fund with minor errors.

Unable to present a proper discussion on each current assets and

current liability items.

Present an incorrect discussion on whether the firm has used current assets and current liabilities as sources of fund or uses of fund.

Unable to present a proper discussion on each current assets and current liability items.

What other major items affected cash flows?

Cash flows from sources other than operating activities are identified.

Cash flows from investing activities and financing activities are identified and explained in detail.

Demonstrate a comprehensive understanding of the topic.

Cash flows from sources other than operating activities are identified.

Cash flows from investing activities and financing activities are identified and explained with minor errors.

Demonstrate a very good understanding of the topic.

Cash flows from sources other than operating activities are identified with minor errors.

Cash flows from investing activities and cash flows from financing activities are separately identified and explained with material errors.

Cash flows from sources other than operating activities are identified with material errors.

Cash flows from investing activities and cash flows from financing activities are not separately identified and explained.

Meet the requirements but with limited information and

discussion.

Demonstrate poor knowledge on the topic.

No reasonable discussion is provided on cash flows from sources other than operating activities.

The answers do not meet the basic requirement as no factual discussion is provided.

What was the trend in capital expenditures for each firm?

Trend in capital expenditures for each of the three firms is correctly identified and discussed comprehensively.

Trend in capital expenditures for each of the three firms is correctly identified.

A good level of discussion is provided.

Trend in capital expenditures for each of the three firms is correctly identified but not well discussed.

Trend in capital expenditures for each of the three firms is correctly identified.

No discussion on the trend is provided.

Trend in capital expenditures for each of the three firms is not correctly identified.

No discussion on the trend is provided.

What was the trend in dividends (if any) for each firm?

Trend in dividends for each of the three firms is correctly identified and discussed comprehensively.

Trend in dividends for each of the three firms is correctly identified.

A good level of discussion is provided.

Trend in dividends for each of the three firms is correctly identified but not well discussed.

Trend in dividends for each of the three firms is correctly identified.

No discussion on the trend is provided.

Trend in dividends for each of the three firms is not correctly identified.

No discussion on the trend is provided.

What was the trend in net borrowing (proceeds from borrowing less payments of short- and long-term debt) for each firm?

Trend in net borrowing for each of the three firms is correctly identified and discussed comprehensively.

Trend in net borrowing for each of the three firms is correctly identified.

A good level of discussion is

provided.

Trend in net borrowing for each of the three firms is correctly identified but not well discussed.

Trend in net borrowing for each of the three firms is correctly identified.

No discussion on the trend is

provided.

Trend in net borrowing for each of the three firms is not correctly identified.

No discussion on the trend is provided.

What was the trend in working capital accounts? (Answer this question using only Appendix B: Cash flow statement for BHP Limited).

Trend in working capital is correctly identified and discussed comprehensively.

Item-wise discussion is provided

Trend in the working capital is correctly identified.

A good level of discussion is provided on each item.

Trend in the working capital is correctly identified.

The trend is not discussed item- wise.

Trend in the working capital is correctly identified.

No discussion on the trend is provided.

Trend in the working capital is not correctly identified.

No discussion on the trend is provided.

Critically evaluate the financial strength of each of the three companies based on the evidence presented in the Statement of Cash Flows.

The financial situations of all three companies are comprehensively discussed

Logical and accurate conclusion is drawn based on the discussion.

Demonstrate outstanding knowledge beyond requirements on the topic.

Issues and facts are presented and analyzed in a logical manner.

A very good discussion is provided on the financial situations of all three companies.

Logical conclusion is drawn based on the discussion.

Demonstrate very good knowledge on the topic.

Issues are discussed adequately based on sufficient research.

The financial situations of all three companies are discussed with scopes for improvement.

Attempt to draw a conclusion but it is not logically and factually sound.

Demonstrate of good knowledge on the topic.

Discuss the issues based on some research and facts with scopes for

improvement.

The financial situations of all three companies are discussed but most of the discussion is basic and scattered.

The discussions are not logically linked.

Demonstrate basic knowledge on the topic.

Meet the requirements but with limited information and discussion.

The financial situations of all three companies are discussed.

The discussions are not logically linked.

Demonstrate poor knowledge on the topic.

The answers do not meet the basic requirement as no factual discussion is provided.

If you are asked to evaluate these three companies for lending purposes, which of the three companies you will select for lending? Explain Why.

Make a clear and accurate selection highlighting the reason for the selection.

Discussion is based on facts and figures.

Make a clear and accurate selection.

A good level of discussion is provided on the selection.

Make a clear and accurate selection.

A basic discussion is provided on the reasons for selection.

Make a clear and accurate selection.

No discussion is provided on the reason for the selection.

The selection is inaccurate.

No reasonable discussion is provided on the reason for the selection.