Change in inventory: is presented as an adjustment to purchases in the calculation of the cost of goods sold. It is the difference between last period's ending inventory and the current period's ending inventory.
Definition: an inventory is a whole list of items such as property, goods in stock, or the contents of a building, and is an asset that is planned to be sold in the ordinary course of business.
Calculate the percentage: 873-426/426*100=105%
The change in inventory has increased, and it's bad, because it refers to cash outflow. Therefore, increasing in inventory means that a company has purchased more goods than it has sold.
Change in trade and other receivables: the trade and other receivables is established when there is objective proof that we will not be able to collect all amounts due according to the original terms of the receivables. The total value of trade receivables for a business at any one time represents the amount of sales which have not yet been paid for by customers, and is carrying amount of loans.
Definition: the trade and other receivables amounts billed by customers for goods and services of a company allowed the customer to purchase on credit. Account receivable is an important factor in a company's working capital.
Calculate the percentage: 30-7/7*100=329%
The change in trade and other receivables has increased, it's bad, because it shows how much money customers who bought products on credit still owe the business in accounts receivable, and it hurts the cash flow.
Change in amounts due from related parties: A party of individual or group, who is related in some way to the initial party. A related party could include a family member or relative, stockholder, or a related corporation.
Definition: A business deal or an arrangement between two parties who are joined by a special relationship prior to the deal.
Calculate the percentage: 510-111/111*100=359%
The change in amount due from related parties has increased, it's good, because it increase the pension and profit-sharing trusts between the parties and employee.
Cash flow from investing activities
Additions to property; plant and equipment: A company asset that is dynamic to business operations but cannot be easily liquidated. The value of property, plant and equipment is typically depreciated over the estimated life of the asset, because even the longest-term assets become obsolete or useless after a period of time.
Definition: is tangible items that are ordinary to be used in more than one period and that are used in production, for rental, or for administration.
Calculate the percentage:2025-2079/2079*100= -2.6%
The additions to property; plant and equipment has decreased, its good, because it decrease the paid cash.
Proceeds from disposal of property; plant and equipment: the proceeds from the sale of long-term assets are told in the investing activities section, while the gain on the sale look like in the operating activities section as a deduction from net income.
Definition: The amount received from the sale of an asset, from the issuance of bonds or stock, or from a bank loan, if the amount of the proceeds is less than the book value, the difference is a loss on the sale or disposal.
Calculate the percentage: 172-1032/1032*100= -83%
The proceeds from disposal of property; plant and equipment has decrease, its good, because it be added to net income in the operating activities section of the cash flow statement.
Additions to intangible assets: These assets will be reported at cost (or lesser) on the balance sheet after property, plant and equipment. Some examples of intangible assets include copyrights, patents, goodwill, trade names, trademarks, mail lists, etc.
Definition: Intangible assets are the long-term resources of an entity, but have no physical existence, and it has a useful life of greater than one year. They develop their value from intellectual or legal rights, and from the value they add to the other assets.
Calculate the percentage: 60-183/183*100= -67%
The intangible assets has decrease, its bad, because it decrease the cash on the balance sheet or income statements.
Investment in associates: An associate firm is partly owned by another company or group of companies. The parent business or businesses do not consolidate the associate company's financial statements. The parent company typically owns 20 to 50% of the voting shares; if more than 50% of the shares are owned by a parent company, it forms a subsidiary (where the parent company consolidates the financial statements). Typically, the parent company records the associate company's value as an asset in its balance sheet. Also called Associate.
Definition: An associate is a related worker in a business. In international accounting, the term refers to an entity over which an investor has significant impact and that is not a subsidiary or an interest in a joint venture, is also known as a co-worker.
Calculate the percentage: 421-419/419*100=0.5%
The investment in associates has increased, its good, because it increase the company financial statements.
Investment in subsidiaries: A company whose voting stock is more than 50% controlled by another company, usually mentioned to as the parent firm or holding company. If a parent corporation owns a foreign subsidiary, the corporation under which the subsidiary is incorporated must follow the laws of the country where the subsidiary operates, and the parent corporation still carries the foreign subsidiary's financials on its books (consolidated financial statements). For the purposes of liability, taxation and regulation, subsidiaries are distinct legal entities.
Definition: A subsidiary is a company that is partly or completely owned by another firm that holds a controlling interest in the subsidiary company.
Calculate the percentage: 269-0/0*100=269 USD
In last year it haven’t invested in subsidiaries, but this year have invested in subsidiaries and the amount is good, because the investment depends on the intent of the investor. If the investor intends to profit from near-term (generally within than 12 months of initial investment) price movements, they are classified as either Trading Securities. If the investor does not intend to trade the securities in the near-term, they are considered Available for Sale. In both cases it's good to invest.
Purchase of available-for-sale financial assets: (AFS) is an accounting term used to classify financial assets. AFS financial assets are initially recognized at fair value and also subsequently carried at fair value. The unrealized changes in the fair value of monetary and non-monetary securities classified as available-for-sale financial assets are recognized in equity.
Definition: is a non-derivative asset classification that does not fit into a variety of other classifications. This type of investment is carried on an entity's books at fair. value. If there is a change in fair value from period to period, the gain or loss is recorded in equity, and a financial asset at fair value through profit or loss.
Calculate the percentage: 42-189/189*100= -78%
Purchase of available-for-sale financial assets has decrease, its good, because the fair value of the investments decreases, and the carrying amount of the investments is decreased, so the changes in fair value of AFS investments (equity) is debited.
Loans to related parties: A loan may be written or oral agreement for a temporary transfer of a property (usually cash) from its owner (the lender) to a borrower who promises to return it according to the terms of the agreement, usually with interest for its use.
Definition: An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan.
Calculate the percentage: 453-83/83*100=446%
The loans to related parties has increased, its good, because it increase their profit over time, and loans are a good way of quickly increasing capital in order to raise a business’ supply capabilities or range.
Proceeds from term deposits over three months: A three month term deposit is a good option for investment. It is a safe and secure place to store that money until you know exactly what you want to do with your new funds. Sit back and research your investment options for three months while earning interest.
Definition: A three month term deposit locks away your money for 90 days and earns you a nice bonus at the end through interest.
Calculate the percentage: 0-25/25*100= -100%
The proceeds from term deposits over three months has decrease, its bad, because it doesn't earning any interest.