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2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.
3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.
4. The management will be able to detect surplus/shortage of fund balance.
5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.
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How can you Prepare fund flow statement?
A fund flow statement or a cash flow statement records the changes in monetary funds over a period of time, usually by comparing the latest position at balance sheet date with the corresponding monetary position a year ago.There are various elements of business that affect fund/cash flow. These include such things as increased sales, reductions or increases in debtors, longer or shorter times in paying creditors, repayments of loans, etc., a summary of which should be shown on separate lines of the statement. It can start with a section listing the elements that contribute to an increase in cash, then the next section lists those items which have contributed to a decrease in cash.Space (and time!) does not permit more comprehensive details of what is needed and how to do it. You should consult a text book on Financial Accounting and look at the fund/cash flow statement of a company similar to the one for which you wish to prepare such a statement.At the end of the fund/cash flow statement, if you have done all your calculations correctly, and taken everything that affects cash movement into account, your final figure will equal the cash figure in the balance sheet.
What is fund and flow resources?
when the supply fund resources is permanent it is called flow resources. on other hand fund resources are those which are fdixed and limited in the quanity
You want to see reliance mutual fund online statement?
reliance mitual fund online statement hoe to view ?
Difference between fund flow statement and balance sheet?
Difference between fund flow statement and balance sheet?Funds flow statement and balance sheet both are the statements of different nature. Funds flow statement is a statement summarizing the significant financial changes which occurred between the beginning and the end of a company's accounting period while balance sheet is a statement of assets and liabilities at a particular point of time. Here are some of the important differences between the two:Funds flow statement include only those items which causes changes in working capital while balance sheet includes the assets and liabilities of the company and shows total resources of the company.Funds flow statement can be used for decision making purpose while balance sheet is used for examining the financial soundness of the company.Funds flow statement is prepared for the use of internal management and hence its preparation is not mandatory, while balance sheet is for the use of external parties like creditors, shareholders, government and hence its preparation is mandatory for the company.Funds flow statement is prepared after preparation of balance sheet and for a relatively short period of time as compare to balance sheet."Hence it can be said that funds flow statement is not a substitute of balance sheet but it is a supplementary statement and hence they should both be used together in order to reach at right conclusion regarding the financial position of the company"
Which also treated as Depreciation fund?
No FLow
State the managerial uses of funds - flow statement?
managerial uses of fund flow analysis
What is fund flow statement how it differ from such flow statement explain the main sources and uses of funds?
Fund flow Statement helps to measure the different sources of funds. Funds Flow Statement analyses the Sources and Application of Funds while others don't.
What are Managerial uses of fund flow statements?
Uses Of Fund Flow Statement1. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.4. The management will be able to detect surplus/shortage of fund balance.5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.
How is a fund flow statement prepared give answer with imaginary figures?
how is a fund flow statement prepared ?give your answer with imaginary figure.
What is another name for cash flow of statement?
Another name of cash flow statement is fund flow statement.
What is another name for the statement of cash flows?
Another name of cash flow statement is fund flow statement.
What constitute an financial statement?
balance sheet profit&loss account cash flow statement fund flow statement
Does purchasing equipment with a note payable appear on the cash flow statement?
No it must be a fund flow statement
You want some solved questions on fund flow statement?
yes
2 Fund flow statement also suffers from window dressing of accounts and hence fails to give true view of fund movement Do you agree with this criticism Give your views?
Its about the limitation of fund flow statemants .....
In preparation of fund flow statement How can you treat If the working capital decreases?
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.
Elaborate on limitations of fund flow statement?
Fund may be interpreted in various ways as (a) Cash, (b) Total current assets. Net working capital, (d) Net current assets. For the purpose fund flow statement the term fund means net working capital. The flow fund will occur in a business, when a transaction results in a change i increase or decrease in the amount of fund.According to Robert Anthony, the Fund Flow Statement describes t sources from which additional funds were derived and the uses to which these funds were put.Different Names of Fund-flow Statement* A Funds Statement* A statement of sources and uses of fund* A statement of sources and application of fund* Where got and where gone statement* Inflow and outflow of fund statementObjectives of Fund Flow StatementThe main purposes of Fund Flow Statement are:1. To help to understand the changes in assets and asset sources which are not readily evident in the income statement or financial statement.2. To inform as to how the cans to the business have been used.3. To point out the financial strengths and weaknesses of the business . Format of Fund Flow StatementSources ApplicationsFund from operation -• Fund lost in operationsNon-trading incomes - Non-operating expensesIssue of shares - Redemption of redeemable preference shareIssue of debentures- Redemption of debenturesBorrowing of loans Repayment of loansAcceptance of deposits Repayment of depositsSale of fixed assets Purchase of fixed asset Sale of Investments Purchase of long term Instruments (Long Term)Decrease in working capital Increase in working capitalSteps in Preparation of Fund Flow Statement1) Preparation of schedule changes in working capital (taking current items only).2) Preparation of adjusted profit and loss account (to know fund from [or] fund lost in operations). 3) Preparation of accounts for non-current items (Ascertain the hidden information).4) Preparation of the fund flow statement.Format of Schedule of Changes in Working CapitalParticulars Previous Year Current year Increase In Decrease inW/c W/cCurrent AssetsCash in handCash at bankBills receivableDebtorsInventoryPrepaid expensesShort-term investment(A) TotalCurrent LiabilityBills payableCreditorsOutstanding expensesAccrued expensesIncome received in advanceBank overdraftCash credit from banksShort-term loanShort-term depositProvision for taxationProposed dividendProvision against current assets(B) TotalWorking Capital (C)(C = A - B)Increase in W/CDecrease in W/CFund from operation can be ascertained by preparing adjusted profit andloss account. It may be prepared in statement form or account form. Format of Adjusted Profit and Loss AccountTo Bal. B/d (P&L Account Dr. Bal.) By Bal. B/d (P&L Account Cr. Bal.)To Non-operating Exp. By Non-operating IncomesTo Depreciation on Fixed Assets By Profit on sale of InvestmentTo Goodwill written-off By profit on sale of fixed assetTo Patent & trademark of f By Dividend on InvestmentTo Preliminary expenditure By Interest on InvestmentTo Discount on issue of shares & By Rent received, gift receivedDebenturesTo Loss on sale of investment By Damages received under lawTo Loss on sale of Fixed Assets By Transfer from general reserve
