What other major items affected cash flows for each firm

Assignment Help Accounting Basics

Reference no: EM132639243

Question - Download the annual financial reports of BHP Ltd, Santos Ltd, and Funtastic Ltd for the year 2019, 2018 and 2017. Examine the consolidated Cash Flow Statements for each companies across three years. Answer the following questions about each of the three cash-flow statements.

1. For each companies [except mentioned otherwise as in c), g) and i) below], across three years on the Statement of Cash Flows discuss:

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

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

c) Compare and contrast the cash flow from operations with the net profit after tax in income statement. Explain in detail the major reasons for the difference between these two figures. (Answer this question using only the Cash flow statement for BHP Limited).

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

e) Did the cash flow from operations cover the dividend payment made by the firm (if any)?

f) 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?

g) 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 the Cash flow statement for BHP Limited).

h) What other major items affected cash flows for each firm?

i) What was the trend in capital expenditures for each firm?

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

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

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

2. Critically evaluate the financial strength of each of the three companies based on the evidence presented in the Statement of Cash Flows, and your answers in (1) above.

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

Assignment Structure should be as the following:

Abstract - One paragraph

List of Content

Introduction

Body of the assignment with detailed answer on each of the required tasks

Summary/Conclusion

List of references

Reference no: EM132639243

Questions Cloud

How was aryan social structure defined by religious belief : How was Aryan social structure defined by religious belief? Why did the Aryans have such rigid controls over their population? Why do think they tied religion

What weakness in the client life impacting client activity : A 68-year-old client lives alone and is independent with all ADLs, has no restrictions for mobility, and is competent, and oriented x4. The client is on a.

Industrial hygiene-derive occupational exposure limits : Discuss the common elements used to derive occupational exposure limits (OELs). Provide your opinion as to which of the elements is the most important.

Discuss how pursuit of perfection shown with classical greek : Discuss How is the pursuit of perfection shown with the Classical Greek people? In answering this question, choose one example of art, architecture, theater

What other major items affected cash flows for each firm : What other major items affected cash flows for each firm? Did the cash flow from operations cover the dividend payment made by the firm (if any)

Determine what kind of study should be undertaken : Within your community, there has been a large increase in teenage smoking, and community leaders are developing a plan to decrease the incidence of smoking.

What was the reasoning behind the punic wars : What was the reasoning behind the Punic Wars? How did these wars change Roman society and colonization? Why are these wars seen as a pivotal turning point

How did the han government address economic issues : How did the Han government address economic and social issues that emerged with growing trade? Why do you think they felt was important to address inequalities

Explain the policy strengths in promoting ethics : Recommend one or more policy or practice changes designed to balance the competing needs of resources, workers, and patients, while addressing any ethical.

User Account

All Pages