ANALYSIS OF SOURCES AND USE OF FUNDS

English Task

Report by:
Arif Nurcahyono
1501311005
Febri Sandika
1502011375

Universitas Ahmad Dahlan

Fakultas Ekonomi Program Studi Manajemen
2015

FOREWORD
Praise me say for the presence of Allah, because by the grace of my
dankarunianya given the opportunity to be able to complete the task this Research
paper.
I realize that in writing this paper are still many shortcomings in the
explanation and so on. Therefore, I ask for criticism and suggestions to build it for
the readers so that we can quote for the repair in writing this paper and the
explanation.
Thank you for the attention of the readers who have read, member of
criticism and advice. Hopefully this will all get behind the wisdom and benefits.
Yogyakarta, December 18th, 2015
Best regards,
Writer

CHAPTER 1
INTRODUCTION
A.

BACKGROUND
Often very useful to make a certain financial reports that can be used as a

tool for evaluating the company's operations both in the past and in the present.
Report on the sources and uses of funds will allow a financial manager to analyze
the sources and uses of funds have historically contained in the company.
Sometimes these reports are used to make forecasting and its main strength
lies in its usefulness in evaluating the sources and use of long-term capital
(sources and uses of long-term funds).
An understanding of the usage patterns of funds in the past will allow a
financial manager to make the plan better plan with respect to the needs and both
short- and long-term.
B.

OBJECTIVES OF WRITING
The general objective of this paper is to further enhance the author's
knowledge and insight regarding the sources and uses of funds and cash on the
company's budget.

CHAPTER 2
DISCUSSION
The financial statements produced by companies from period to period or
from year to year can be used to find and detect the flow of funds that is where the
source of the funds derived or generated and for what and how the funds are used
or spent. We can find and detect the flow of funds by comparing the financial
statements of two consecutive years. We can conclude that a method of analysis is
used to study how a company implement policies in order to acquire funds and
use these funds often referred to as Analysis Sources and Uses of Funds.
Therefore, companies must be careful in dealing with financial issues in
the management of resources and the use of working capital or funds. Statements
of sources and uses of funds is a report that is useful for the management of the
company, its creditors, shareholders and other parties. The management and the
short-term creditors will primarily be interested in the short-term financial
position (the position of the working Modak) of a company including the changes
that occurred during that period. The rise in working capital may be indicated in
cash, securities (securities), receivables and in inventories or decrease or reduction
in current liabilities, and an increase in working capital will be interpreted
depends on the sources that caused the increase.
Funds will later be analyzed in terms of cash, meaning that any change
elements that exist in the financial statements will increase or decrease the cash.
Therefore, the report called a statement of sources and uses of cash. Statements of
sources and uses of cash is structured to show the change in cash during the
period and give reasons for the change in the cash by showing where the sources
of cash and their uses.
Company prepares reports sources and uses of funds on the basis of capital
or often called the report the sources and use of working capital. Working capital
here is in terms of net that is the excess of current assets over current debt. In this
report is not listed in it the sources of the funds originating from the elements of

working capital itself, because the changes are only related elements current assets
and current liabilities alone - both accounts they will be called the "current
accounts" - not will mengakibatkna - changes the amount of working Capital.
Working capital only change if there are changes to elements outside the
"current accounts" of the so-called "non-current accounts" - which has the net
effect on working capital changes of elements of non current accounts which have
the effect of enlarging the working capital is called as sources of working capital,
and the changes of elements of non-current accounts have the effect reduce
working capital is referred to as the use of working capital at a time greater than
the sum of working capital at the time of the previous means no increase in
working capital, then this is because the sources are greater than the users so as to
have a positive net effect on working capital. Conversely if the consumer is
greater than the source, then the net effect is to reduce working capital. If the
magnitude of the source exactly equal to the amount of use, there is no net effect
on working capital, so that the amount of working capital remains unchanged.

REFERENCES
Broad Based Business Reporting the complete reporting tool(2008)
Financing the Australian Energy Sector 2009 the impact of
climate policy and the global credit crunch (2009)
Treasury Working Paper 2009 02: Corporate Governance and
Financial Performance in an Australian Context (2009)
Australian Securities Exchange Corporate Governance Principles
and Recommendations
United Nations Principles for Responsible Investment www.unpri.org
Snapshot: preliminary views on financial statement presentation
Energy Supply Association of Australia
Mineral Council of Australia