Assessment task: Part A Review the existing literature to critically examine the relative...

Question

Assessment task: Part A Review the existing literature to critically examine the relative information content of the income statement and the statement of cash flows. Why do investors find both income statement and statement of cash flows useful?  Part B 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

Riddhi · Accepted Answer

Assignment on cash flow statement
Assignment on cash flow statement
BHP Ltd
Cash flow positive from operating activities
It is dividend paying company
Strong growth potential
Some portion of excess cash flow from operating activities is invested in purchase of fixed assets year on year
Company has bought back shares in 2019.
Net cash flow from discontinued business is very low.

Assessment task: Part A Review the existing literature to critically examine the relative information content of the income statement and the statement of cash flows. Why do investors find both income...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment