when working capital decreases it should be written under the head SOURCES OF FUNDS in fund flow statement. and when W/C increases it should be written under APPLICATION OF FUNDS.
WORKING CAPITAL STATEMENT (WCS) is part of the financial statements' "Statements of Cash Flows or Changes in Financial Position." The WCS normally includes sections covering: Sources of Working Capital, Uses of Working Capital, and Working Capital Changes.
It is the statement of change in financial position, prepared to determine only source and uses of working capital between date of to balance sheet.
Be brief when giving a statement to describe working and non-working experiences that you feel have significantly contributed to your preparation for the position. State an event that strengthened the skills the job requires.
DECREASES
WORKING CAPITAL STATEMENT (WCS) is part of the financial statements' "Statements of Cash Flows or Changes in Financial Position." The WCS normally includes sections covering: Sources of Working Capital, Uses of Working Capital, and Working Capital Changes.
Coca Cola has one of the largest working capitals in the United States. They have issued a statement that their total working capital is $1.24 billion.
A distinction between these two statements may be briefed asFunds Flow Statement is concerned with all items constituting funds (Working Capital)for the business while Cash Flow Statement deals only with cash transactions. In other words, a transaction affecting working capital other than cash will affect Funds statement, and not the Cash Flow Statement.In Funds Flow Statement, net increase or decrease in working capital is recorded while in Cash Flow Statement, individual item involving cash is taken into account.Funds Flow statement is started with the opening cash balance and closed with the closing cash balance records only cash transactions.Cash Flow Statement is started with the opening cash balance and closed with ht closing cash balance while there a no opening or closing balances in Funds Flow Statement.
It effects in working capital changes in cash flow
nothing both r similarAlternate answer:The fund flow statement shows the sources and uses of working capital. Working capital equals current assets minus current liabilities (usually excluding the short term portion of interest bearing debt). The cash flow statement explains the change in cash (and cash equivalents), by showing the change in cash as a result of operating, investing and financing activities. The sum of these equal the change in cash over the period.An important difference is that working capital is broader than 'just' cash (and cash equivalents). For example, working capital can increase even though cash is decreasing (for example when the increase in inventory and accounts receivables is larger than the cash decline).Nowadays companies provide a cash flow statement.
conclusion of determinant of working capital
It decreases.
Optimal working capital is that point where exact amount of working capital is available to run day to day activities and there is no excess or shortage of working capital at any point.