Fund Flow

Statement

Presented By:
Priyanka Lawate
Roll No. 59
Fund + Flow = Fund Flow
 Fund:-
Cash Resources
The equivalent of the sum total of cash &
marketable securities


 Flow:-
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.

 Fund Flow Analysis
It consist of two different analysis:-
 Working Capital analysis
 Cash Flow Analysis
Working Capital is the excess of current asset over
current liabilities.
This analysis include two separate statements:

1.Statement of changes in Working Capital

2.Statement of Sources & Applications of funds
3.
Cash flow analysis is the analysis of inflow & out flows
of cash.
Cash flow analysis results in separate report:

 i.e. Sources & Application of cash


 Step 1:
 Schedule of Changes in
Working Capital
 Particulars Previous Current Changes Changes
Year Year in in
Rs. Rs. Working Working
Capital Capital
A. Current Assets: Increase Decrease
Stock Rs. Rs.
Debtors
Cash/Bank
Prepaid Expenses
Total (A)
B.Current Liabilities:
Creditors
Bills Payable
Outstanding Exp.
Bank Overdraft
Total (B)
Working Capital (A-B)
Increase/DecreaseIn
Working Capital
 Step 2:
 Inflow or outflow from Non-
Current Items
 Step 3:
 Find Out Fund from Operation
 Rs. Rs. Rs.
Sales xx
Other Operating Revenues Xx
Less: Total Operating Cost
(Other than Depreciation)

 Cost of Goods Sold: xx

Opening Stock xx
Purchases
Direct Expenses xx
xx
Less: Closing Stock xx xx
(b) Office & Administration
Expenses
(Including outstanding but xx
excluding prepaid)
Selling & Distribution Expenses
(Including outstanding but
excluding prepaid) xx xx
Fund from Operations xx
 Step 4:
 Prepare Fund Flow Statement
 Fund Flow Statement
Sources Rs. Applications Rs.

Sources of Funds: Application of Funds:

Funds from operations Purchase of Fixed Assets
Sale of Fixed Assets Redemption of Preference
Issue of Shares Share
Issue of Debentures Redemption of
Loan taken Debentures
Payment of Taxes
Decrease in Working Payment of Dividend
Capital Repayment of Loans
Increase in Working
Capital