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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?
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).
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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 3-2.5 4-3 3-2.5
Very good 2.5-1.75 3-2.5 2.5-1.75
Good 1.75-1.5 2.5-2.00 1.75-1.5
Satisfactory 1.5-1.00 2.00-1.00 1.5-1.00
Unsatisfactory 1.00-0 1.00-0 1.00-0
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 (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).
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 borrowing (proceeds from borrowing 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 breaches. If you have any questions about Academic Integrity issues
related 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 breaches 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 breaches
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 fabrication 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 Rubric
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
statement of cash flows. Why do
investors find both income statement
and statement of cash flows useful?
/5 Demonstrate outstanding
knowledge beyond
requirements on the topic.
Extensive relevant research
Independent and in-depth
analysis.
Issues and factors are
presented and analyzed in a
logical manner.
Broad and credible sources of
references have been cited
using proper referencing style.
Demonstrate very good
knowledge on the topic.
Substantial relevant
research.
Issues are discussed
adequately based on
sufficient research.
Adequate references in
proper referencing style.
Demonstrate good
knowledge on the topic.
Adequate relevant
research.
Discussed the issue based
on some research and facts.
Scopes for improvement
remain.
Adequate references in
proper referencing style.
Demonstrate basic
knowledge on the topic.
Some relevant research.
Meet the requirements
but with limited
information and
discussion.
Limited references.
Demonstrate poor
knowledge on the topic.
Limited and/or no relevant
research.
The answers do not meet
the basic requirement as no
factual discussion is
provided.
No reference.
What are the major sources of cash
for each firm? What are the major
uses of cash for each firm?
/1 Major sources of cash and
major uses of cash are
identified and discussed in
detail.
Major sources of cash and
uses of cash are identified.
Detailed discussion is
provided with minor errors.
Major sources of cash and
uses of cash are identified
with minor errors.
Basic discussions are
attempted with minor
errors.
Major sources of cash
and uses of cash are
identified with material
errors.
Basic discussions are
attempted with material
errors.
No clear attempt is made to
identify the major sources
of cash and uses of cash.
No discussion is provided.
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HI5020 Corporate Accounting Individual Assignment 2 2020
Questions Marks Excellent Very Good Good Satisfactory Unsatisfactory
What was the trend in cash flow from
(continuing) operations for each firm?
/1 Trends in the cash flows from
continuing operations are
identified and discussed
adequately.
Demonstrate outstanding
knowledge beyond
requirements on the topic.
Independent and in-depth
analysis.
Issues and factors are
presented and analysed in a
logical manner.
Trends in the cash flows
from continuing operations
are identified.
Discussion is not
comprehensive.
Demonstrate very good
knowledge on the topic.
Issues are discussed
adequately
based on sufficient
research.
Trends in the cash flows
from continuing operations
are identified with minor
errors.
Basic discussion has been
provided with minor errors.
Demonstrate good
knowledge on the topic.
Trends in the cash flows
from continuing
operations are identified
with material errors.
No discussion is
provided.
Demonstrate basic
knowledge on the topic.
Meet the requirements
but with limited
information and
discussion.
No realistic attempt is
made to identify the trend.
No discussion is provided.
Demonstrate poor
knowledge on the topic.
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 Shows a complete
comprehension of the
relationship between net
income and cash flows from
operations.
The reasons for the differences
between these two
figures are identified and
discussed in detail.
The relationship between
net income and cash flows
from operations are
explained.
The reasons for the
differences between these
two figures are identified
and discussed with minor
errors.
The relationship between
net income and cash flows
from operations are
explained.
Identification of the reasons
of the differences between
these two figures contains
material errors.
A reasonable attempt is
made to identify the
relationship between net
income and cash flows
from operations.
A reasonable attempt is
made to identify the
reasons of the
differences between
these
two figures but fail to
completely grasp the
issue.
Errors are identified in
the answer.
A poor attempt is made to
explain the relationship
between net income and
cash flows from operations.
Was the firm able to generate enough
cash
/1 Identify all cash flows from
operation with specific
Identify all cash flows from
operation with specific
Identify all cash flows from
operation with specific
A reasonable attempt is
made to identify cash
flows from operation
No reasonable attempt is
made to identify cash flows
from operation with specific
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HI5020 Corporate Accounting Individual Assignment 2 2020
Questions Marks Excellent Very Good Good Satisfactory Unsatisfactory
from operations to pay for all of its
capital expenditures?
mention of whether it is
positive or negative.
Identify all capital
expenditures and synthesise
the adequacy of cash flows
from operations to cash
required for capital
expenditures.
mention of whether it is
positive or negative.
Identify all capital
expenditures.
Unable to explain whether
the adequacy of cash flows
from operations is
adequate for cash required
for capital expenditures.
mention of whether it is
positive or negative.
Identify most capital
expenditures.
Unable to explain whether
the adequacy of cash flows
from operations is adequate
for cash required for capital
expenditures.
with specific mention of
whether it is positive or
negative.
Identify some capital
expenditures.
Unable to explain
whether the adequacy of
cash flows from
operations is adequate
for cash required for
capital expenditures.
Some errors are
identified in the answer.
mention of whether it is
positive or negative.
Fail to identify most capital
expenditures.
Unable to explain whether
the adequacy of cash flows
from operations is adequate
for cash required for capital
expenditures.
Material errors are
identified in the answer.
Did the cash flow from operations
cover the dividend payment made by
the firm (if any)?
/1 Clearly demonstrate the
sources of fund used for
and dividend.
Demonstrate outstanding
knowledge beyond
requirements on the topic.
Demonstrate the sources
of fund used dividend.
Minor errors.
Demonstrate very good
knowledge on the topic.
Address the question but
unable to clearly indicate
whether the cash flows
from operations were
enough
for dividend payment.
Demonstrate good
knowledge on the topic.
Answer the question
correctly with a simple
“yes” or “No” answer.
No discussion is
provided.
Demonstrate basic
knowledge on the topic.
Incorrectly answered the
question with a simple
“yes” or “No” answer.
No discussion is provided.
Demonstrate poor
knowledge on the topic.
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 Clearly identify and explain
whether the firm has
generated excess cash flows.
Present a good discussion on
free cash flows and uses of
excess cash flows.
Identify and explain
whether the firm has
generated excess cash
flows.
Present a reasonable
discussion on the concept
of free cash flows and uses
of excess cash flows.
Identify and explain
whether the firm has
generated excess cash
flows.
Present a discussion on the
concept of free cash flows
and uses of excess cash
flows with errors.
Identify and explain
whether the firm has
generated excess cash
flows with some errors.
No discussion is made
about free cash flows.
Incorrectly identify and
explain whether the firm
has generated excess cash
flows.
No discussion is made
about free cash flows.
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HI5020 Corporate Accounting Individual Assignment 2 2020
Questions Marks Excellent Very Good Good Satisfactory Unsatisfactory
The discussion on uses of
excess cash flows is
unclear.
No discussion or incorrect
discussion is made on uses
of excess cash flows.
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).
/2 Demonstrate a clear
understanding of how
changes in current assets and
current liabilities can be
source of fund and/or uses of
fund.
Correctly explain whether the
firm has used working capital
items as sources of operating
cash flows or uses of operating
cash flows.
Present a good
discussion on whether
the firm has used current
assets
and current
liabilities as sources of fund
or uses of fund.
Present an item-wise
discussion on each current
assets and current liability
items with minor errors.
Present a reasonable
discussion on whether the
firm has used current assets
and current
liabilities as sources of fund
or uses of fund.
Present an item-wise
discussion on each current
assets and current liability
items with material errors.
Present a discussion
on whether the firm
has used current
assets
and current
liabilities as sources of
fund or uses of fund
with minor errors.
Unable to present a
proper discussion on
each current assets and
current liability items.
Present an incorrect
discussion on whether the
firm has used current assets
and current liabilities as
sources of fund or uses of
fund.
Unable to present a proper
discussion on each current
assets and current liability
items.
What other major items affected
cash flows?
/1 Cash flows from sources other
than operating activities are
identified.
Cash flows from investing
activities and financing
activities are identified and
explained in detail.
Demonstrate a
comprehensive
understanding of the topic.
Cash flows from sources
other than operating
activities are identified.
Cash flows from investing
activities and financing
activities are identified and
explained with minor
errors.
Demonstrate a very good
understanding of the
topic.
Cash flows from sources
other than operating
activities are identified with
minor errors.
Cash flows from investing
activities and cash flows
from financing activities are
separately identified and
explained with material
errors.
Cash flows from sources
other than operating
activities are identified
with material errors.
Cash flows from
investing activities and
cash flows from
financing activities are
not separately identified
and explained.
Meet the requirements
but with limited
information and
discussion.
Demonstrate poor
knowledge on the topic.
No reasonable discussion is
provided on cash flows from
sources other than
operating activities.
The answers do not meet
the basic requirement as no
factual discussion is
provided.
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HI5020 Corporate Accounting Individual Assignment 2 2020
Questions Marks Excellent Very Good Good Satisfactory Unsatisfactory
What was the trend in capital
expenditures for each firm?
/1 Trend in capital expenditures
for each of the three firms is
correctly identified and
discussed comprehensively.
Trend in capital
expenditures for each of
the three firms is correctly
identified.
A good level of discussion is
provided.
Trend in capital
expenditures for each of
the three firms is correctly
identified but not well
discussed.
Trend in capital
expenditures for each of
the three firms is
correctly identified.
No discussion on the
trend is provided.
Trend in capital
expenditures for each of
the three firms is not
correctly identified.
No discussion on the trend is
provided.
What was the trend in dividends (if
any) for each firm?
/1 Trend in dividends for each of
the three firms is correctly
identified and discussed
comprehensively.
Trend in dividends for each
of the three firms is
correctly identified.
A good level of discussion is
provided.
Trend in dividends for each
of the three firms is
correctly identified but not
well discussed.
Trend in dividends for
each of the three firms is
correctly identified.
No discussion on the
trend is provided.
Trend in dividends for each
of the three firms is not
correctly identified.
No discussion on the trend is
provided.
What was the trend in net borrowing
(proceeds from borrowing less
payments of short- and long-term
debt) for each firm?
/1 Trend in net borrowing for
each of the three firms is
correctly identified and
discussed comprehensively.
Trend in net borrowing for
each of the three firms is
correctly identified.
A good level of discussion is
provided.
Trend in net borrowing for
each of the three firms is
correctly identified but not
well discussed.
Trend in net borrowing
for each of the three
firms is correctly
identified.
No discussion on the
trend is provided.
Trend in net borrowing for
each of the three firms is
not correctly identified.
No discussion on the trend is
provided.
What was the trend in working capital
accounts? (Answer this question using
only the Cash flow statement for BHP
Limited).
/1 Trend in working capital is
correctly identified and
discussed comprehensively.
Item-wise discussion is
provided
Trend in the working
capital is correctly
identified.
A good level of
discussion is provided on
each item.
Trend in the working capital
is correctly identified.
The trend is not discussed
item-wise.
Trend in the working
capital is correctly
identified.
No discussion on the
trend is provided.
Trend in the working capital
is not correctly identified.
No discussion on the trend is
provided.
Critically evaluate the financial
strength of each of the three
companies based on the evidence
presented in the Statement of Cash
Flows.
/5 The financial situations of
all three companies are
comprehensively discussed
Logical and accurate
conclusion is drawn based
on the discussion.
A very good discussion is
provided on the financial
situations of all three
companies.
The financial situations of
all three companies are
discussed with scopes for
improvement.
Attempt to draw a
conclusion but
The financial situations
of all three companies
are discussed but most
of the discussion is basic
and scattered.
The financial
situations of all three
companies are discussed.
The discussions are not
logically linked.
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HI5020 Corporate Accounting Individual Assignment 2 2020
Questions Marks Excellent Very Good Good Satisfactory Unsatisfactory
Demonstrate outstanding
knowledge beyond
requirements on the topic.
Issues and facts are presented
and analyzed in a logical
manner.
Logical conclusion is
drawn based on the
discussion.
Demonstrate very good
knowledge on the topic.
Issues are discussed
adequately based on
sufficient research.
it is not logically and
factually sound.
Demonstrate of good
knowledge on the topic.
Discuss the issues based on
some research and facts
with scopes for
improvement.
The discussions are not
logically linked.
Demonstrate basic
knowledge on the topic.
Meet the requirements
but with limited
information and
discussion.
Demonstrate poor
knowledge on the topic.
The answers do not meet
the basic requirement as no
factual discussion is
provided.
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 Make a clear and accurate
selection highlighting the
reason for the selection.
Discussion is based on facts
and figures.
Make a clear and accurate
selection.
A good level of discussion
is provided on the
selection.
Make a clear and accurate
selection.
A basic discussion is
provided on the reasons for
selection.
Make a clear and
accurate selection.
No discussion is provided
on the reason for the
selection.
The selection is inaccurate.
No reasonable
discussion is provided
on the reason for the
selection.
Conclusion /1 Apply your judgement
References /1 Apply your judgement
Total in Written assignment /30
Video presentation /10
Total /40

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