Question

The 2018 Annual Reports/Financial Statements forboth Air NZ and Auckland Airportare provided on Canvas/Modules/5.Assignments 1 to 5.Answer the questions in the Answer Booklet for both Air NZ and Auckland Airport. All questions relate to 2018.

Air NZ : https://p-airnz.com/cms/assets/PDFs/Air-NZ-2018-Financial-Results.pdf

AKL airport : https://corporate.aucklandairport.co.nz/-/media/Files/Corporate/Annual-Report-2018/Annual-Report-2018-Financial-Statements.ashx?la=en&hash=3FD590BBFBB78389CD2DEA7EE8402BCAEC4332E9

The questions below relate to the SCF and relevant notes.	Auckland Airport (AA)	Air New Zealand
On what page is the SCF?
Which method was selected to present CFOA in the SCF?
What is the note number relating to Net CFOA?
Why is there a reconciliation of ‘Net profit to CFOA’ in the above said note?
State the income tax paid $ amount.
State the net cash flow from/(applied to) investing activities $ amount.
State the net cash flow from/(applied to) financing activities $ amount.
Where did Air NZ make a mistake in the wording in its SCF?	Ignore question for AA.
State the amount of cash applied to purchasing PPE and intangibles.
State the dollar amount for the depreciation and amortisation non-cash item adjustment in the ‘PAT to CFOA’ reconciliation
State the cash and cash equivalents $ amount at the end of the year.
State the total interest paid $ amount.
How was ‘interest expense paid’ classified in the SCF?
How was ‘interest income received’ classified in the SCF?
How was ‘dividends paid’ classified in the SCF?
Determine the ‘cash generated from operations’ $ amount.

Answer 1

The questions below relate to the SCF and relevant notes.	Auckland	Air
	Airport (AA)	New Zealand
On what page is the SCF?	Page 24	Page 6
Which method was selected to present CFOA in the SCF?	Direct Method	Direct Method
What is the note number relating to Net CFOA?	Note No. 6	Note No. 5
Why is there a reconciliation of ‘Net profit to CFOA’ in the above said note?	The reconciliation is provided to show the impact of non cash items, items not to be considered as a part of CFOA.	The reconciliation is provided to show the impact of non cash items, items not to be considered as a part of CFOA.
State the income tax paid $ amount.	$96.4M	$81M
State the net cash flow from/(applied to) investing activities $ amount.	($33.5M)	($778M)
State the net cash flow from/(applied to) financing activities $ amount.	($226.1M)	($279M)
Where did Air NZ make a mistake in the wording in its SCF?	Ignore question for AA.	The description says for the year to 30 June 2018
State the amount of cash applied to purchasing PPE and intangibles.	$310.3M	$809M
State the dollar amount for the depreciation and amortisation non-cash item adjustment in the ‘PAT to CFOA’ reconciliation	$88.9M	$525M
State the cash and cash equivalents $ amount at the end of the year.	$106.7M	$1343M
State the total interest paid $ amount.	$77.9M	$63M
How was ‘interest expense paid’ classified in the SCF?	Shown as increase and decrease in borrowings under CF from Financing Activities	Shown as increase and decrease in interest bearing liabilities under CF from Financing Activities
How was ‘dividends paid’ classified in the SCF?	Shown as Cash applied under CF from Financing Activities	Shown as Dividend on Ordinary Shares under CF from Financing Activities
Determine the ‘cash generated from operations’ $ amount.	$321.2M	$1031M