fund flow ppt

1. FUND FLOW STATEMENT

2. Scientific methods of preparation of Fund Flow Statement

3. FORMAT OF SCHEDULE OF CHANGES IN WORKING CAPITAL

6. Funds from operations Direct method Indirect method Direct method Funds from operations = Funds from operating revenue less funds for operating expenses

7. Indirect Method Profit & Loss Adjustment Account

8. Statement of Adjustment Net Profit as per Profit & Loss Account ** Add: Non- Cash and non – operating expenses ** Less : Non-cash and non- operating income ** Funds from operations **

9. Format of Fund Flow Statement

10. Need for fund flow statement Shortcomings in Balance Sheet 2. Shortcomings in Profit & Loss Account

11. Importance of Fund Flow Statement Gives information about amount of working capital and changes in the amount of working capital. It analyses Balance sheet to reveal the financing & investing activities. It analyses the Profit & Loss Account to reveal the effect of business activities of the concern on the flow of funds. It is a tool for planning future activities of business.