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    Analysis of Fund Flow Statement

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    s_ripunjay
    This document discusses fund flow statements. A fund flow statement shows changes in a company's working capital from one period to another. It does this by analyzing changes in current assets and current liabilities between two balance sheet dates. Any increases or decreases in current assets that are not matched by opposite changes in current liabilities represent a change in working capital. The fund flow statement then categorizes the sources and uses of funds that caused the change in working capital.

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    Analysis of Fund Flow Statement

    Uploaded by

    s_ripunjay
    13K views5 pages
    This document discusses fund flow statements. A fund flow statement shows changes in a company's working capital from one period to another. It does this by analyzing changes in current assets and current liabilities between two balance sheet dates. Any increases or decreases in current assets that are not matched by opposite changes in current liabilities represent a change in working capital. The fund flow statement then categorizes the sources and uses of funds that caused the change in working capital.

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    a brief analysis of fund flow with format

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    Analysis of Fund Flow Statement ppt

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    This document discusses fund flow statements. A fund flow statement shows changes in a company's working capital from one period to another. It does this by analyzing changes in current assets and current liabilities between two balance sheet dates. Any increases or decreases in current assets that are not matched by opposite changes in current liabilities represent a change in working capital. The fund flow statement then categorizes the sources and uses of funds that caused the change in working capital.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    13K views5 pages

    Analysis of Fund Flow Statement

    Uploaded by

    s_ripunjay
    This document discusses fund flow statements. A fund flow statement shows changes in a company's working capital from one period to another. It does this by analyzing changes in current assets and current liabilities between two balance sheet dates. Any increases or decreases in current assets that are not matched by opposite changes in current liabilities represent a change in working capital. The fund flow statement then categorizes the sources and uses of funds that caused the change in working capital.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 5

    FUND FLOW STATEMENT

     As the words indicates fund flow refers to the changes in fund


    (i.e. Working capital) by a business transaction .

     There is always a flow of fund (change in working capital) by


    these business transaction which:

    (a) Increase the current asset’s but do not bring any


    increase in current liabilities and vice-versa.
    (b) Decrease in current asset’s but do not bring any
    decrease in current liabilities and vice-versa

    Hence, the difference between the two (current asset &current


    liabilities) is called working capital
    Scientific methods of preparation of fund flow statement

    FUND FLOW STATEMENT

    SCHEDULED CHANGE IN WORKING STATEMENT OF SOURCES AND


    FUND FROM OPERATION
    CAPITAL USES OF FUND
    FORMAT OF SCHEDULED CHANGE IN WORKING CAPITAL

    WORKING CAPITAL
    END OF THE YEAR CHANGES
    CURRENT YEAR PREVIOUS YEAR (Rs.) INCREASE (Rs.) DECREASE(Rs.)
    (Rs.)

    CURRENT ASSETS

    ------ ------ ----- ------- ------


    ------ ------ ----- ------- ------
    ------ ------ ------ ------- -----

    TOTAL(A)

    CURRENT
    LIABILITIES

    ------ ----- ----- ----- ------


    ------ ----- ------ ----- ------
    ------ ----- ----- ----- ------

    TOTAL(B)

    WORKING CAPITAL(A-
    B)

    INCREASE/DECREASE TOTAL ------- -------


    IN WORKING
    CAPITAL
    CURRENT ASSETS AND LIABILITIES EXTRACTED FROM THE COMPARATIVE BALANCE SHEET OF X LTD. FOR 2002 &
    2001:

    CURRENT ASSETS CURRENT LIABILITIES

    PARTICULARS 2001 2002 PARTICULARS 2001 2002

     CASH IN HAND 3000 4000  BILLS PAYABLE 4000 3000

     BILLS RECIEVABLE 6000 8000  CREDITORS 16000 17000

     BOOK DEBTS 20000 25000  PROVISION FOR TAX 8000 5000

     STOCK 28000 35000  OUTSTANDING EXP. 200 400

     INVESTMENT 6000 3000  RESERVE FOR D/D 2000 3000

     PREPAID EXP. 1200 400

    TOTAL 64,200 75,400 TOTAL 30,200 28,400


    SCHEDULED CHANGE IN WORKING CAPITAL

    END OF THE YEAR WORKING CAPITAL


    CHANGES
    2002 (Rs.) 2001 (Rs.) INCREASE (Rs.) DECREASE (Rs.)
    CURRENT ASSETS
    CASH IN HAND 4000 3000 1000 -------
    BILLS RECIEVABLE 8000 6000 2000 --------
    BOOKS DEBTS 25000 20000 5000 ---------
    STOCKS 35000 28000 7000 ---------
    INVESTMENT 3000 6000 ---------- 3000
    PREPAID EXP. 400 1200 ---------- 800
    75,400 64,200
    TOTAL(A)
    CURRENT LIABILITIES
    BILLS PAYABLE 3000 4000 1000 --------
    CREDITORS 17000 16000 ---------- 1000
    PROVISION FOR TAX 5000 8000 3000 ---------
    OUTSTANDING EXP. 400 200 ---------- 200
    RESERVE FOR D/D 3000 2000 --------- 1000
    28,400 30,200
    TOTAL(B)
    WORKING CAPITAL(A- 47,000 34,000
    B)
    INCREASE/DECREASE --------- 13000
    IN WORKING
    CAPITAL

    TOTAL 19000 19000

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