Analysis Of Fund Flow Statement Ppt
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FUND FLOW STATEMENT
As the words indicates fund flow refers to the changes in fund (i.e. Working capital) by a business transaction .
There is always a flow of fund (change in working capital) by these business transaction which: (a) Increase the current asset’s but do not bring any increase in current liabilities and vice-versa. (b) Decrease in current asset’s but do not bring any decrease in current liabilities and vice-versa Hence, the difference between the two (current asset ¤t liabilities) is called working capital
Scientific methods of preparation of fund flow statement
FUND FLOW STATEMENT
SCHEDULED CHANGE IN WORKING CAPITAL
STATEMENT OF SOURCES AND USES OF FUND
FUND FROM OPERATION
FORMAT OF SCHEDULED CHANGE IN WORKING CAPITAL WORKING CAPITAL CHANGES
END OF THE YEAR CURRENT YEAR (Rs.)
PREVIOUS YEAR (Rs.)
INCREASE (Rs.)
DECREASE(Rs.)
CURRENT ASSETS ------
------
-----
-------
------
------
------
-----
-------
------
------
------
------
-------
-----
------
-----
-----
-----
------
------
-----
------
-----
------
------
-----
-----
-----
------
-------
-------
TOTAL(A) CURRENT LIABILITIES
TOTAL(B) WORKING CAPITAL(AB) INCREASE/DECREASE IN WORKING CAPITAL
TOTAL
CURRENT ASSETS AND LIABILITIES EXTRACTED FROM THE COMPARATIVE BALANCE SHEET OF X LTD. FOR 2002 & 2001:
CURRENT ASSETS
CURRENT LIABILITIES
PARTICULARS
2001
2002
CASH IN HAND
3000
4000
BILLS RECIEVABLE
6000
BOOK DEBTS
PARTICULARS
2001
2002
BILLS PAYABLE
4000
3000
8000
CREDITORS
16000
17000
20000
25000
PROVISION FOR TAX
8000
5000
STOCK
28000
35000
OUTSTANDING EXP.
200
400
INVESTMENT
6000
3000
RESERVE FOR D/D
2000
3000
PREPAID EXP.
1200
400
64,200
75,400
30,200
28,400
TOTAL
TOTAL
SCHEDULED CHANGE IN WORKING CAPITAL
END OF THE YEAR 2002 (Rs.)
2001 (Rs.)
WORKING CAPITAL CHANGES INCREASE (Rs.)
DECREASE (Rs.)
CURRENT ASSETS CASH IN HAND
4000
3000
1000
-------
BILLS RECIEVABLE
8000
6000
2000
--------
BOOKS DEBTS
25000
20000
5000
---------
STOCKS
35000
28000
7000
---------
INVESTMENT
3000
6000
----------
3000
PREPAID EXP.
400
1200
----------
800
75,400
64,200
TOTAL(A) CURRENT LIABILITIES BILLS PAYABLE
3000
4000
1000
--------
CREDITORS
17000
16000
----------
1000
PROVISION FOR TAX
5000
8000
3000
---------
OUTSTANDING EXP.
400
200
----------
200
RESERVE FOR D/D
3000
2000
---------
1000
28,400
30,200
47,000
34,000 ---------
13000
19000
19000
TOTAL(B) WORKING CAPITAL(AB) INCREASE/DECREASE IN WORKING CAPITAL TOTAL
As the words indicates fund flow refers to the changes in fund (i.e. Working capital) by a business transaction .
There is always a flow of fund (change in working capital) by these business transaction which: (a) Increase the current asset’s but do not bring any increase in current liabilities and vice-versa. (b) Decrease in current asset’s but do not bring any decrease in current liabilities and vice-versa Hence, the difference between the two (current asset ¤t liabilities) is called working capital
Scientific methods of preparation of fund flow statement
FUND FLOW STATEMENT
SCHEDULED CHANGE IN WORKING CAPITAL
STATEMENT OF SOURCES AND USES OF FUND
FUND FROM OPERATION
FORMAT OF SCHEDULED CHANGE IN WORKING CAPITAL WORKING CAPITAL CHANGES
END OF THE YEAR CURRENT YEAR (Rs.)
PREVIOUS YEAR (Rs.)
INCREASE (Rs.)
DECREASE(Rs.)
CURRENT ASSETS ------
------
-----
-------
------
------
------
-----
-------
------
------
------
------
-------
-----
------
-----
-----
-----
------
------
-----
------
-----
------
------
-----
-----
-----
------
-------
-------
TOTAL(A) CURRENT LIABILITIES
TOTAL(B) WORKING CAPITAL(AB) INCREASE/DECREASE IN WORKING CAPITAL
TOTAL
CURRENT ASSETS AND LIABILITIES EXTRACTED FROM THE COMPARATIVE BALANCE SHEET OF X LTD. FOR 2002 & 2001:
CURRENT ASSETS
CURRENT LIABILITIES
PARTICULARS
2001
2002
CASH IN HAND
3000
4000
BILLS RECIEVABLE
6000
BOOK DEBTS
PARTICULARS
2001
2002
BILLS PAYABLE
4000
3000
8000
CREDITORS
16000
17000
20000
25000
PROVISION FOR TAX
8000
5000
STOCK
28000
35000
OUTSTANDING EXP.
200
400
INVESTMENT
6000
3000
RESERVE FOR D/D
2000
3000
PREPAID EXP.
1200
400
64,200
75,400
30,200
28,400
TOTAL
TOTAL
SCHEDULED CHANGE IN WORKING CAPITAL
END OF THE YEAR 2002 (Rs.)
2001 (Rs.)
WORKING CAPITAL CHANGES INCREASE (Rs.)
DECREASE (Rs.)
CURRENT ASSETS CASH IN HAND
4000
3000
1000
-------
BILLS RECIEVABLE
8000
6000
2000
--------
BOOKS DEBTS
25000
20000
5000
---------
STOCKS
35000
28000
7000
---------
INVESTMENT
3000
6000
----------
3000
PREPAID EXP.
400
1200
----------
800
75,400
64,200
TOTAL(A) CURRENT LIABILITIES BILLS PAYABLE
3000
4000
1000
--------
CREDITORS
17000
16000
----------
1000
PROVISION FOR TAX
5000
8000
3000
---------
OUTSTANDING EXP.
400
200
----------
200
RESERVE FOR D/D
3000
2000
---------
1000
28,400
30,200
47,000
34,000 ---------
13000
19000
19000
TOTAL(B) WORKING CAPITAL(AB) INCREASE/DECREASE IN WORKING CAPITAL TOTAL
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