Meaning of Fund Flow Statement.
A Fund
flow Statement is a financial document that analysis a Company’s Balance Sheet
two year validate the movement of funds from the previous financial year to the
current year. With the help of the Statement, financial analysis can assess the
Fund flow of an organization in the next future.
What is Fund flow Statement and its uses?
What is Fund Flow Statement |
The basic purpose of
funds flow statement is to reveal the changes in the working capital on the two
Balance Sheet dates. It also describes the source of which additional working
capital has been financed and the uses to which working capital has been
applied.
Elements of Fund flow Statement.
There are mainly six
components of flow of fund exists. These components are current assets.
Non-current assets are popularly known as fixed or permanent Liabilities also
known as Capital and Long-term Liabilities. Provision of tax and last one is a
Proposed Dividend.
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