1.  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)  Was the firm able to generate enough cash from operations to pay for all of its capital expenditures?

d)  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)  What other major items affected cash flows for each firm?

1. i)  What was the trend in capital expenditures for each firm?

2. j)  What was the trend in dividends (if any) for each firm?

3. k)  What was the trend in net borrowing (proceeds from borrowing less payments

   of short- and long-term debt) for each firm?
    

Transcribed Image Text:

Consolidated Statement of Cash Flows for the year ended 31 December 2018 Cash flows from operating activities Receipts from customers. Dividends received Pipeline tariffs and other receipts Payments to suppliers and employees Restoration expenditure Exploration and evaluation seismic and studies Royalty and excise paid Borrowing costs paid Income taxes paid. Royalty-related taxes paid Other operating activities Net cash provided by operating activities Cash flows from investing activities Payments for: Exploration and evaluation assets Oil and gas assets Other land, buildings, plant and equipment Acquisitions of oil and gas assets. Acquisition of subsidiary, net of cash acquired Costs associated with acquisition of subsidiaries Proceeds from disposal of non-current assets Proceeds from disposal of subsidiaries Borrowing costs paid Other investing activities Net cash used in investing activities Cash flows from financing activities Dividends paid Drawdown of borrowings Repayment of borrowings Note 4.1(b) 6.2(a) 2.7 6.2(b) 2018 US$million £**§¤®¤[®¤► x® 3,740 (1,816) (36) (98) (85) (194) (69) (13) 1,578 (66) (490) (10) (10) (1,933) (10) (2,373) (73) 1,193 (220) Net proceeds from issues of ordinary shares Purchase of shares on-market (Treasury shares) Net cash provided by/(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on the balances of cash held in foreign currencies Cash and cash equivalents at the end of the period 4.1 1,316 The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated financial statements. (10) 890 95 1,231 US$million (10) *** 08000² 81° 5 (1,611) (15) (2,442) (1.518) Consolidated Statement of Changes for the year ended 31 December 2018 Balance at 1 January 2017 Transfer retained profits to accumulated profits reserve Items of comprehensive income Loss for the period Other comprehensive income/(loss) for the period Total comprehensive income/(loss) for the period Transactions with owners in their capacity as owners Shares issued On-market share purchase. (Treasury shares) Share-based payment transactions Balance at 31 December 2017 Balance at 1 January 2018 Transfer retained profits to accumulated profits reserve Items of comprehensive income Profit for the period Other comprehensive (loss)/income for the period Total comprehensive (loss)/income for the period Transactions with owners in their capacity as owners Dividends paid On-market share purchase (Treasury shares) Share-based payment transactions Issued Translation Hedgin capital reserve reserv Note US$million US$million US$millio 5.4 5.3 5.3 7.2 5.4 2.6 5.3 7.2 8.883 151 (8) 8 9,034 9,034 Equity attribu (10) 7 (830) 302 302 (528) (528) (437) (437) Balance at 31 December 2018 9,031 (965) The consolidated statement of changes in equity is to be read in conjunction with the Consolidated Statement of Cash Flows for the year ended 31 December 2018 Cash flows from operating activities Receipts from customers. Dividends received Pipeline tariffs and other receipts Payments to suppliers and employees Restoration expenditure Exploration and evaluation seismic and studies Royalty and excise paid Borrowing costs paid Income taxes paid. Royalty-related taxes paid Other operating activities Net cash provided by operating activities Cash flows from investing activities Payments for: Exploration and evaluation assets Oil and gas assets Other land, buildings, plant and equipment Acquisitions of oil and gas assets. Acquisition of subsidiary, net of cash acquired Costs associated with acquisition of subsidiaries Proceeds from disposal of non-current assets Proceeds from disposal of subsidiaries Borrowing costs paid Other investing activities Net cash used in investing activities Cash flows from financing activities Dividends paid Drawdown of borrowings Repayment of borrowings Note 4.1(b) 6.2(a) 2.7 6.2(b) 2018 US$million £**§¤®¤[®¤► x® 3,740 (1,816) (36) (98) (85) (194) (69) (13) 1,578 (66) (490) (10) (10) (1,933) (10) (2,373) (73) 1,193 (220) Net proceeds from issues of ordinary shares Purchase of shares on-market (Treasury shares) Net cash provided by/(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on the balances of cash held in foreign currencies Cash and cash equivalents at the end of the period 4.1 1,316 The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated financial statements. (10) 890 95 1,231 US$million (10) *** 08000² 81° 5 (1,611) (15) (2,442) (1.518) Consolidated Statement of Changes for the year ended 31 December 2018 Balance at 1 January 2017 Transfer retained profits to accumulated profits reserve Items of comprehensive income Loss for the period Other comprehensive income/(loss) for the period Total comprehensive income/(loss) for the period Transactions with owners in their capacity as owners Shares issued On-market share purchase. (Treasury shares) Share-based payment transactions Balance at 31 December 2017 Balance at 1 January 2018 Transfer retained profits to accumulated profits reserve Items of comprehensive income Profit for the period Other comprehensive (loss)/income for the period Total comprehensive (loss)/income for the period Transactions with owners in their capacity as owners Dividends paid On-market share purchase (Treasury shares) Share-based payment transactions Issued Translation Hedgin capital reserve reserv Note US$million US$million US$millio 5.4 5.3 5.3 7.2 5.4 2.6 5.3 7.2 8.883 151 (8) 8 9,034 9,034 Equity attribu (10) 7 (830) 302 302 (528) (528) (437) (437) Balance at 31 December 2018 9,031 (965) The consolidated statement of changes in equity is to be read in conjunction with the

Answer rating: 100% (QA)

a What are the major sources of cash for each firm What are the major uses of cash for each firm The major sources of cash for each firm are Firm 1 Sales of products and services Borrowing Firm 2 Sale... View the full answer