Posted: September 14th, 2017

Cash flow statements in business organisations

Cash flow statements in business organisations

 
We need to compare and contrast cash-flow statements over 2 periods for 2 public French companies: BNP Paribas and Societe Generale Group.
Task 3 (Total 60 marks)
You are required to choose two Public Limited Companies in the same sector or industry and carry out the following tasks based on their recent Cash Flow Statements published in their Annual Reports:
a. Compare and contrast, over two consecutive operating periods, the respective net cash flows from Operating Activities of the two companies. (16 marks)
b. Explain how each company has managed its working capital over the two accounting periods? (18 marks)

c. Analyse and explain the Financing Activities of each company in the two consecutive operating periods. State with reasons which of the two companies faces lower risk for their long-term funding policy in the most recent year. (14 marks)

d. Review the Investment Activities of the two companies in two consecutive operating periods and state with reasons which of the two you consider having a more prudent investment policy in the most recent financial year?
(12 marks)
Task 4 (Total 10 marks)
Comment on the overall strategy being observed by the two companies based on their cash inflows and outflows over the two consecutive periods you have analysed in previous tasks. As part of your answer, consider which of the two companies is able to manage its cash flow better. Give reasons in support of your views.
(10 marks)
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