Fund Flow Statement

Presented By: Priyanka Lawate Roll No. 59

Fund + Flow = Fund Flow

Fund:marketable securities

Cash Resources The equivalent of the sum total of cash &


Conversion or transfer of economic values from

one asset to another, from equity of one type to another, from one asset to equity, or viceversa, or combination of these. Movement of funds between two balance sheet dates.

Fund Flow Analysis
It consist of two different analysis: Working Capital analysis  Cash Flow Analysis Working Capital is the excess of current asset over current liabilities. This analysis include two separate statements: 1.Statement of changes in Working Capital 2.Statement of Sources & Applications of funds 3. Cash flow analysis is the analysis of inflow & out flows of cash. Cash flow analysis results in separate report:  i.e. Sources & Application of cash

Step 1:

Schedule of Changes in Working Capital

A. Current Assets:
Stock Debtors Cash/Bank Prepaid Expenses Total (A)

Previous Current Year Year Rs. Rs.

Changes in Working Capital Increase Rs.

Changes in Working Capital Decrease Rs.

B.Current Liabilities:
Creditors Bills Payable Outstanding Exp. Bank Overdraft Total (B)

Working Capital (A-B) Increase/DecreaseIn Working Capital

Step 2:

Inflow or outflow from NonCurrent Items

Step 3:

Find Out Fund from Operation

Sales Other Operating Revenues Less: Total Operating Cost (Other than Depreciation)



xx Xx

Cost of Goods Sold: Opening Stock Purchases Direct Expenses

Less: Closing Stock (b) Office & Administration Expenses (Including outstanding but excluding prepaid) Selling & Distribution Expenses (Including outstanding but excluding prepaid) Fund from Operations

xx xx xx xx xx

xx xx


xx xx

Step 4:

Prepare Fund Flow Statement

Fund Flow Statement
Sources of Funds:
Funds from operations Sale of Fixed Assets Issue of Shares Issue of Debentures Loan taken Decrease in Working Capital

Rs. Applications
Application of Funds:


Purchase of Fixed Assets Redemption of Preference Share Redemption of Debentures Payment of Taxes Payment of Dividend Repayment of Loans Increase in Working Capital

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