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).

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.