Cash flow statement
Statement cash flo•• i rcJiaration and discussion of reason in changcs in itcms
The statement of cash from’ included the items like receipts of cash from the customers. pay ment of cash to the employees and suppliers These items sliou the difference in the amount presented in the statement of cash flou According to Peninan er of (2015. p.10). the other items in the cash fiou stateitient are also having amounts which differ from each other. The number of receipts of cash from the customers for the year 2017, 201fi and 2015 is analj zed to be
$338715ñ. $1 lG0594 and $1268552 respectively Similarly. the other items also shou the varied amount for the follou ing years. Lastly, the obtained from the activities in the cash f1ou statement also represents the i’aried amount for different ears.
Comprehcnsii’c income statcmcnt
Analysation of the Alteration of the Cash Flow Statement for the Past Three Years
A dcccnt obscri’ation of the items of changes in thc prGY’ioiis thrcc ycars ii as obscri’cd whilc preparing the cash flow statement The cash floii » as seen to be $ 102,882, S 26f,796 anal S l,l0fi,130 for the years 2017. 2016 and 2015 respectii ely It can be clearly analj sed from the aboi’c that thcrc is a dcccnt dccrcasc in the cash flow’ in thc consccutix’c ycars The total cash ii as found to be $ 2,688,494, S 2,061,78d and S 2,766,281 for the consecutive years 2017, 2016 and 2015 Hoii’ci’cr. thc cqiiii’alcnt cash and thc cash nt the period’ s end ii as found to bc 1112,882, $ 269,796 and $ 1,105,150 for the ycars 2G17. 2010 and 2G 15 respcctii’cly. This is obscri’cd that the i alue kept on decreasing gradually in the coiisecutii e years A brief discussion of the aboi e itcins as the cash flo»’ siatcincnt has bccn documcntcd
A Comparative Discussion of the every items of the Cash Flori’ Statement
The cash flow statement according to the actin ities gi cs a clear idca on thc source of the cash gcncration of thc compare’. Thc cash ontflo»’ gii’cs thc brief idca of thc ccntral idca and the scri’ices pro ided by the company. On tlic otlicr hand. the actin itj statcinents clear the idea of those actii’itics. ii’hich arc ini’oli’cd in the purpose of irn’csiincnt of the company. How ci’cr. these itcins. which arc rccordcd. gii’c us a clcar idea about thc changes in thc asscts. cquipincnts and
thc ini’csiincnts of thc company Morcoi’cr. thcsc itcms arc accounted for thc cash outflow too. The amounts for the Borrois’ings’ Repayment » ere found to be in loss and the i’alue » as S 2,0fi3,990, S l,808,4fi2 anil S 77,494 for the year 2017. 2016 and 2015 The amounts for the Borro» in ps Procecds ii crc sccn to be in loss and the i aluc ii as S 4,742,484, $ 3,252,401 and $ 7l,64i5. The amounts for the Purchases of equipment, plant and propeni » as obsen ed as S 51,156, S 38,338 and $ 53,876 for the threc consccutii c i cars of 2017. 2010 and 2015. Thc Nct moi’cmcnt in loans was seen nil for thc thrcc conscciitii’c ; cars of 2017. 2016 and 2Gl 5.
(III} Explanation of undcrstaniling statement of income items
The statement of the income items understanding includes the analysis of each item of the income statemcnt. According to Okcr c•/ o/. (2Gl IL p 39). the total rei’enue of the company has been amounted to be $2787904. $3041955 and $3200433 for the years 2017. 201fi and 2015 respectii’cly On the other hand. the total expcnditiirc of the company has amounted to
$0628520. $06G9731 and li59GS895 for thc years 2017. 2016 and 2G15 respectii’eh Thercforc. bj‘ deducting the rei’enue from the expenses. the loss or profit before the tax can be analj zed for the company Lastly . the toial income of thc company can be analj zed bi deducting the profit before tax from the tax e xpeiise of the company The total income of the company has been observed to be $ 3857549. $337016.1 and $2fi2i4023 for the year 2017. 201fi and 2015 respectii’cly
(IV} Demonstration of the items incluiled in the statement of income
Items included in the statement of income are re enue, other income and i arious expenses which are related to depreciation. tax and expenses of general. administratii’e and selling. According to Dagu elf er e/. (2015. p.l0). the grou th of the company is determined ii ith the help of the re enue analj zed in the statement of income. The gross profit of the company is analj zed by deducting the revenue from the cost of goods sold. The loss or profit of the company can be analj zed u'itIi the help of calculations done among i arious items mentioned in the statement.
(V) Demonstration of the items which are not included in the statement of income According to Berzkalne «i nf. (2014, p.887), income statement items which are not included in the prepared table is the cost of goods sold. The cost of goods sold is the second item which is recorded in the statement of income.
(YI} Identifying the number of tax expenses seen in the report of the company
According to Buckley et al. (2015, p 25), the expense of tax of the company has been observed to be S53128, $305469 and S9703 for the year 2017, 2016 and 2015 respectively.
(YII) Explanation and Identification of the Tax Expenses
The expense of the organisational taxw as determined to be the loss for the company in the three consecutive years of 2015, 2016 and 2017.however, the Company’s tax expenses were the liabilities, which were related to the federal government, municipal government and state government during that tenure. Moreover, the tax expense of the company should be assessed Q the multiplication of the loss or the profits prior to the rate of tax-by-tax. The cash flow from the operating activities had also been analysed in the statement of the cash flow and was determined to be $ 2,799,237, $ 2,872,7a «d s 2,o44,272 for the three consecutive years of 2017. 2016 and 2015.
(VIII) Comments on Assets and Deferred Liabilities of the Balance sheet articulating for Not recoriling it
It is seen that there is already a deduction of the tax that got deferred and this was done in advance too. Moreover, this amount can also be carried folnvard in order to pay in the near future. The difference that arrives between the accounting income and the taxable income is termed as the deferred tax (Berzkalne and Zelgalve, 2014, p.888). Due to the reason of the capacity of the meeting test of 50% being deferred. the companies are not being able to use the deferred tax. As a result, the assists remain untouched on a peculiar situation of the company. Hosever, if the company faces regular and constant losses then there is a decent increase in the deferred tax as per the amount of the total loss of the company.
(IX} Identifying the payable Income tax or the Current Assets of the Company and citing
Reasons for the Difference of the Above Two
The payable tax income for the year 2015 was found to be in Loss and the value was $ 9703, while it was found profit for the year 2016 and 2017 and the values were $ 305,469 and $ 53.128
rcspgctii cly Thc currcnt tax asscts ii crc not is ablc to idcntify. as there ii crc no such rccords for the same (Oker and Adiguzel, 2016, p.41)
Ho» e er. the Income tax Expense and the tax payable » ere not the same as the set of the accounting rules for the tax payablc incomc ii as i’cy’ diffcrcnt from the set of those accounting niles during the presentation of the income tax expense
(X) Understanding the Deferred Tax Assets and Liabilities and Citing thc Reasons for the
The rei erse of the liability of tax, »'liich is deferred in nature. is the tax asset, » hich is also dcfcrrcd in nnturc The dcfcrrcd iax is thc total consumption of the total tnxcs. which arc paid for the upcoinin g j ears Ho» c er, thcre are no cliangcs found on the tax asscts » hich are deferred and lieiicc. there are no changes found on the tax liabilities too » hich are deferred iii the company ’s balance Shect Thc only rcason for this is that both the nboi’c itcins ii crc not at all present on the balancc shect sincc the prci ious jears
(XI} Identifying thc Company’s Nc» Insights as PCr thc Incomc Tax
According to thc cxpcnscs pcrtaining to cnx’ironmcnt. a clear iindcrstanding can bc dcdiiccd on the ne» insights of tlic taxable income possesscd bj thc Coiiipany. Moreoi cr. the coiiipany can also inakc a good profit of the ncii’ insights ii’ith contcxt to thc carriage of thc total losscs it made during the operations of the business. Hence. it becomes quite easier for the Company to get a clear idea of the abovc-discussed insights. How ei er, tlicsc infonnatioii about thcsc ucta msights assist thc companics to pcrfonn its opcrations of biisincss in a much smoothcr and also in an efficientway.
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