ittech: Preparation of fund flow statement

ittech: Preparation of fund flow statement.

 

However, the technique of cash flow statement when used in conjunction with ratio analysis serves as barometer in measuring the profitability and financial position of the business.

 

Preparation of fund flow statement

The preparation of fund flow statement has the following steps-

A) Schedule of changes in working capital-

B) FUND flow Statement

A) Schedule of hanges in Working Capital

 

It can be prepared by comparing the current assets and current liability of two periods.

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