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HI5020 Corporate Accounting Individual Assignment 2 2020
HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
Assessment Details and Submission Guidelines
Trimester T2 2020
Unit Code HI5020
Unit Title Corporate Accounting
Assessment Type Individual Assignment
Assessment Title Issues in Cash Flow Statement
Purpose of the
assessment (with ULO
Mapping)
This assignment aims at developing a clear understanding of students about income statement
and cash flows statement; and use of cash flow statement to comprehend different key business
decisions taken by the management. They will have to consult relevant literature and
demonstrate understanding of key concepts. As part of their assignment, they will also conduct
an empirical analysis on cash flow statement. (ULO 1, 2, 4, 5, 6)
Weight 40 % of the total assessments (Written assignment 30 % + Presentation 10 percent)
Total Marks Written assignment 30 marks + Presentation 10 marks
Word limit 3,000 words ± 500 words
Due Date Assignment submission: Final Submission of individual Assignment: 11:59 pm
Wednesday 23rd Sep, Week 10
Late submission incurs penalties of five (5) % of the assessment value per calendar day
unless an extension and/or special consideration has been granted by the lecturer
prior to the assessment deadline
Submission Guidelines • All work must be submitted on Blackboard by the due date along with a completed
Assignment Cover Page.
• The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins
on all four sides of your page with appropriate section headings and page numbers.
• Reference sources must be cited in the text of the report, and listed appropriately at the end
in a reference list using Harvard referencing style.
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HI5020 Corporate Accounting Individual Assignment 2 2020
Assignment Specifications
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?
) 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
etween 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 (cu
ent asset and cu
ent 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 bo
owing (proceeds from bo
owing 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).
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HI5020 Corporate Accounting Individual Assignment 2 2020
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
Instruction for video presentation:
Based on your written assignment, you will have to make a summary video presentation ranging for
10 minutes. Your presentation should explain the assignment tasks and your key findings. You will
have to upload the presentation in YouTube and submit the YouTube link in the blackboard so that
the marker can watch and mark your presentation. Your assignment will be marked based on the
following criteria:
Presentation Style (3
marks)
Content (4 marks) Clarity of the
presentation ((3 marks)
Excellent XXXXXXXXXX
Very good XXXXXXXXXX1.75
Good XXXXXXXXXX.75-1.5
Satisfactory XXXXXXXXXX XXXXXXXXXX
Unsatisfactory XXXXXXXXXX0
Marking criteria
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
the income statement and the statement of cash flows. Why do investors find both
income statement and statement of cash flows useful?
5%
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HI5020 Corporate Accounting Individual Assignment 2 2020
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%
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).
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 the dividend payment 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 (cu
ent asset and cu
ent 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).
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 bo
owing (proceeds from bo
owing less payments of
short- and long-term debt)?
1%
What was the trend in working capital accounts? (Answer this question using only the
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 in Written Assignment 30%
Video presentation 10%
Total 40 %
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HI5020 Corporate Accounting Individual Assignment 2 2020
Academic Integrity
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity
is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all
assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six
categories of Academic Integrity
eaches. If you have any questions about Academic Integrity issues
elated to your assessment tasks, please consult your lecturer or tutor for relevant referencing
guidelines and support resources. Many of these resources can also be found through the Study Sills
link on Blackboard.
Academic Integrity
eaches are a serious offence punishable by penalties that may range from
deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment,
or cancellation of course enrolment.
Table 1: Six categories of Academic Integrity
eaches
Plagiarism Reproducing the work of someone else without attribution. When a
student submits their own work on multiple occasions this is known as
self-plagiarism.
Collusion Working with one or more other individuals to complete an assignment,
in a way that is not authorised.
Copying Reproducing and submitting the work of another student, with or
without their knowledge. If a student fails to take reasonable
precautions to prevent their own original work from being copied, this
may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to present as
oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task, generally in
exchange for money or other manner of payment.
Data fa
ication and
falsification
Manipulating or inventing data with the intent of supporting false
conclusions, including manipulating images.
Source: INQAAHE, 2020
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HI5020 Corporate Accounting Individual Assignment 2 2020
Marking Ru
ic
Questions Marks Excellent Very Good Good Satisfactory Unsatisfactory
Abstract /1 Apply your judgement
List of content & overall presentation
of the assignment
1 Apply your judgement
Introduction /1 Apply your judgement
Do the relevant research to critically
examine the relative information
content of income statement and