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Case Study
Project Total Marks: 100
Elective - Financial
Management
Prepare a Funds Statement showing the increase
or decrease in working capital of an ancillary unit near your place of
residence.
FUND
FLOW STATEMENT
Introduction:
The purpose of measuring trading performance,
operational efficiency, profitability and financial position of a concern
revealed by Trading, Profit and Loss Account and Balance Sheet. These financial
statements are prepared to find out the Gross Profit or Gross Loss, Net Profit
or Net Loss and financial soundness of a firm ~ a whole for a particular period
of time. From the management point of view, the usefulness of information
provided by these income statements functions effectively and efficiently. In the
true sense they do not disclose the nature of all transactions. Management,
Creditors and Investors etc. want to determine or evaluate the sources and
application of funds employed by the firm for the future course of action.
Based on these backgrounds, it is essential to analyse the movement of assets,
liabilities, funds from operations and capital between the components of two
year financial statements. The analysis of financial statements helps to the
management by providing additional information in a meaningful manner.
Meaning of Fund
The term "Fund" refers to Cash, to Cash
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