Question :
The present report is based on a business entity which is Grain Crop. Ltd. Which includes discussion about various topic.
- Discussion about cash flows statement
- Define other comprehensive income statement
- Explain different accounting for corporate income tax
Answer :
INTRODUCTION
Managing the business accounts in the most prominent ways which will be effective and efficiency for the business as to have satisfactory rise in the income and operational viabilities of firm. Moreover, in the present report there will be discussion based on analysing the financial health of Grain Corp. Ltd. Over the period. The financial data set of this business will be analysed as well as studies in terms of reaching to the concrete solutions.
CASH FLOWS STATEMENT
1. Items of cash flow statement
|
Particulars |
2017 |
2016 |
2015 |
|
Customers' Receipts |
4824.1 |
4350.5 |
4315.5 |
|
Payments made to suppliers and employees |
-4505.3 |
-4125.7 |
-4006.9 |
|
|
318.8 |
224.8 |
308.6 |
|
Proceeds of borrowings (funding of stock) |
42.2 |
-4 |
9.1 |
|
Interest received in a year |
2.4 |
1.3 |
2.6 |
|
Interest paid in year |
-41.9 |
-38.4 |
-42.6 |
|
Income taxes paid in year |
-21 |
-32.2 |
-6.6 |
|
Net cash flow from operating activities |
300.5 |
151.5 |
271.1 |
|
Payment made for Property, Plant and Equipment (PPE) |
-199.7 |
-268.2 |
-223.6 |
|
Computer software charges paid |
-26.5 |
-7.9 |
-12.8 |
|
Proceeds of sale of PPE |
34.8 |
4.4 |
6.2 |
|
Proceeds from investment business or sales |
106.6 |
|
|
|
Investment Payments |
-35.6 |
-5.9 |
-2.3 |
|
Dividend paid |
83.2 |
|
0.2 |
|
Loans repaid by parties |
|
|
19.1 |
|
Net cash outflow from investing activities |
-37.2 |
-277.6 |
-213.2 |
|
Proceeds of banks |
941 |
801.1 |
679.8 |
|
Loan Repayment |
-1080.7 |
-696.6 |
-561.8 |
|
Paid dividends |
-42.3 |
-22.9 |
-28.6 |
|
Non-controlling interest (NCI) in period |
1.5 |
|
|
|
Bought treasury shares in a year |
-4.1 |
|
|
|
Net cash flow from financing activities |
-184.6 |
81.6 |
89.4 |
|
Net decrease / (increase) of cash and cash equivalents (CCE) |
78.7 |
-44.5 |
147.3 |
|
Opening balance |
307.6 |
374 |
206.2 |
|
Effect of Exchange rate in a year |
2.6 |
-21.9 |
20.5 |
|
Closing balance |
388.9 |
307.6 |
374 |
The cash flow statements are being formulated for three years in the best possible manner. It is justified in the past years that firm is able to perform good and as such, cash position is good which is required so that it may perform well in future operations. Grain Corp Ltd had customer receipts of 4315.6 in 2015, increased to 4350.5 in next year and further in 2017 as well. Payments to suppliers and employees are maximised (Tahat, Omran and Dunne, 2017). Borrowings in 2017 has hiked to 42.2 which was -4 in 2016 and 9.1 in 2015. Interest received is maximised in the latest year and interest paid have been accounted for and increased as well. Income tax paid in 2017 was 21. Payment from PPE is increased in recent years. Computer software payment is accounted for and maximised to 26.5 in 2017. Sale of PPE is increased and cash inflow is being generated. Loans repaid to parties are made in 2015 only and as such, no after payments were made. Proceeds from bank is maximised as it was 679.8 in 2015, 801.1 in 2016 and maximised to 941 in 2017. Loans repayments are increased in the latest financial year. Treasury shares are purchased amounting to 4.1 in 2017. Thus, overall cash position is good in 2017 as opening balance was 307.6 and increased to 388.9 at the end.
2. Cash flows attained in previous years
It can be analysed that cash flow position of Grain Corp Ltd is well enough in the past financial years (Liu, Li, Zeng and An, 2017). It is evident from the fact that cash flows from operating activities are increased as it was only 275.1 in financial year 2015 and raised to 151.5 in 2016 and further maximised to 300.5 in 2017 which shows cash is generated effectively. Investing activities are good as non-current assets are sold and cash has been produced. Financing activities were 89.4 in 2015 while, it became -184.6 in 2017 which means outflow is accomplished as cash is used in paying dividends. However, cash position is good.
OTHER COMPREHENSIVE INCOME STATEMENT
3. Items of other comprehensive income statement of past years
|
Particulars |
2017 |
2016 |
2015 |
|
Income |
125.2 |
30.9 |
32.1 |
|
Other comprehensive income |
|
|
|
|
Items not reclassified to Profit and loss account |
|
|
|
|
Retirement benefit's obligation (Remeasurements) |
12.7 |
-17.4 |
-1.1 |
|
Income tax on such items |
-2.9 |
2.6 |
0.6 |
|
|
|
|
|
|
Items reclassified to Profit and loss account |
|
|
|
|
Changes found in fair value of cash flow hedge in a period |
28.6 |
4.6 |
-21.6 |
|
Shares of incomes of joint venture |
|
-0.1 |
0.1 |
|
Income tax on items |
-6.8 |
-2.1 |
5.2 |
|
Exchange difference of foreign business operations |
2.1 |
-78.4 |
89.2 |
|
Other comprehensive income obtained (Net tax) |
33.7 |
-90.8 |
72.4 |
|
Total comprehensive income available to equity shareholders |
158.9 |
-59.9 |
104.5 |
|
Total comprehensive income provided to: |
|
|
|
|
Parent entity equity holders' |
158.9 |
|
|
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