What was the trend in working capital accounts? (Answer this question using only Appendix B: Cash flow statement for BHP Limited). Trend in working capital is correctly identified and discussed comprehensively. Item-wise discussion is provided Critically evaluate the financial strength of each of the three companies based on the evidence presented in the Statement of Cash Flows. The financial situations of all three companies are comprehensively discussed Logical and accurate conclusion is drawn based on the discussion. Demonstrate outstanding knowledge beyond requirements on the topic. Issues and facts are presented and analyzed in a logical manner. If you are asked to evaluate these three companies for lending purposes, which of the three companies you will select for lending? Explain Why. Make a clear and accurate selection highlighting the reason for the selection. Discussion is based on facts and figures.

What other major items affected cash flows? 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. What was the trend in capital expenditures for each firm? Trend in capital expenditures for each of the three firms is correctly identified and discussed comprehensively. What was the trend in dividends (if any) for each firm? Trend in dividends for each of the three firms is correctly identified and discussed comprehensively. What was the trend in net borrowing (proceeds from borrowing less payments of short- and long-term debt) for each firm? Trend in net borrowing for each of the three firms is correctly identified and discussed comprehensively.

Did the cash flow from operations cover both the capital expenditures and the dividend payments made by the firm (if any)? Clearly demonstrate the sources of fund used for capital expenditures and dividend. Demonstrate outstanding knowledge beyond requirements 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? 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. 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 Appendix B: Cash flow statement for BHP Limited). 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.

Was cash flow from operations greater than or less than net income? Explain in detail the major reasons for the difference between these two figures. (Answer this question using only Appendix B: Cash flow statement for BHP Limited). 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. Was the firm able to generate enough cash from operations to pay for all of its capital expenditures? Identify all cash flows from operation with specific 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.

Excellent 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? 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. What are the major sources of cash for each firm? What are the major uses of cash for each firm? Major sources of cash and major uses of cash are identified and discussed in detail. What was the trend in cash flow from (continuing) operations for each firm? 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 analyzed in a logical manner.

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 Appendix B: 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 Weight 30%

Was cash flow from operations greater than or less than net income? Explain in detail the major reasons for the difference between these two figures. (Answer this question using only Appendix B: 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 both the capital expenditures and the dividend payments 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 Appendix B: Cash flow statement for BHP Limited). 2%

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 income statement and statement of cash flows. Why do investors find both income statement and statement of cash flows useful? 5% 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%

• 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.

Group Formation: Registration of groups/Submission of group member’s name: before 5:00 pm Friday, Week 6. Please form the group and submit the name and ID of your group members to your lecturer in the class before 5:00 pm Friday, Week 6. There should be minimum 2 and maximum 5 members in a group. Assignment submission: Final Submission of Group Assignment: 11:59 pm Friday, 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.