.fund => Fund + Flow = Fund FlowFund:-Cash ResourcesThe equivalent of the sum total of cash & marketable securitiesFlow:-Conversion or transfer of economic values from one asset to another, from equity of one type to another, from one asset to equity, or vice-versa, or combination of these.Movement of funds between two balance sheet dates. 3. Fund Flow AnalysisIt consist of two different analysis:- Working Capital analysis Cash Flow AnalysisWorking Capital is the excess of current asset over current liabilities.This analysis include two separate statements:Statement of changes in Working CapitalStatement of Sources & Applications of fundsCash flow analysis is the analysis of inflow & out flows of cash. Cash flow analysis results in separate report: i.e. Sources & Application of cash 4. Step 1:Schedule of Changes in Working Capital 6. Step 2:Inflow or outflow from Non-Current Items 7. Step 3:Find Out Fund from Operation 9. Step 4:Prepare Fund Flow Statement 10. Fund Flow Statement
Posted on: Sun, 21 Jul 2013 08:17:56 +0000
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