Review the statement of cash flows

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Reference no: EM131186474 , Length: word count:2500

HI5001 Accounting for Business Decisions Group Assignment-

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is ENERGY that you have chosen.

The assignment aims to develop an understanding of financial statements structure and their use in decision-making. The task is to choose a publicly listed company from the Australian Stock Exchange (ASX) which should be approved by your Lecturer as not to have the same company from other groups. Furthermore, an analysis on the profitability based on the latest financial report is very important.

Part 1 Executive Summary & Introduction

Provide an executive summary which states the problem, how it was investigated, what was found, and what the findings mean. The introduction may include the company's background relating to business structure, operations, services and all other business activities that are conducted, etc.

Part 2 Main Body

A. Statement of Financial Position

Use the annual report for the year ending 30 June 2015. Your group will need to review the major sections of this report in order to familiarize yourselves with the content of each of the financial statements and appropriate notes to the financial statements. Review the balance sheet of the company and indicate the amount of the following:

a) Total current assets

b) Total non-current assets

c) Total current liabilities

d) Total non-current liabilities

e) Total stockholder's equity

Compare the above figures with the previous year and compute the percentage increase or decrease and comment on the comparative financial condition of the company.

B. Stockholders' Equity

Review the stockholders' equity section in your chosen company's most recent year-end balance sheet and compare that with the previous year-end balance sheet. Compare percentage increase or decrease.

List the stockholders' equity account balances and number of outstanding shares from these two balance sheets and compute the increase or decrease for each during this past year.

C. Statement of Profit & Loss

Review the income statement and indicate the following:

a) Total (operating) revenues

b) Cost of Goods Sold (if relevant)

c) Total expenses (before income taxes)

d) Any non-operating (or extraordinary) gains and losses

e) Earnings per common share

Compare the above figures with the previous year and compute the percentage increase or decrease and comment on the comparative financial operation of the company.

D. Statement of Cash Flow

Review the statement of cash flows for the most recent year and indicate the following:

a) net cash inflow (outflow) from operating activities

b) net cash inflow (outflow) from financing activities

c) net cash inflow (outflow) from investing activities

d) net increase (decrease) in cash during the year

Analyse the Cash Flow Statements for the last 2 years and comment on the cash position of the company.

Part 3 - Conclusion

Discuss the importance & interpretation of the findings.

Part 4 - Recommendations

What is the course of action based on your conclusion?

Part 5 - References

List all sources used. Harvard style of referencing should be used.

Part 6 - Appendices

Graphs, charts, tables or other data not mentioned in the body.Number of Words

2500 Words / 10 Pages

Style: Harvard

References: 15.

Reference no: EM131186474

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8/30/2016 1:02:18 AM

The report should be prepared by a group with a maximum of four (4) members. Reports must be confined to 2,500 words (+/- 5%). The report should include as a minimum a title page, executive summary or abstract, table of contents page, introduction, main body, conclusion, recommendations, references and appendices. Font type should be Arial (size 11), paragraph spacing should be 1.5. Five (5) points will be awarded for reports that followed the instructions to the letter.

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