How to Prepare a Cash Flow Statement: With Methods, Examples and Entries! Cash flow statement is prepared on the same lines as the funds flow statement, but strictly restricted to sources and uses of cash. Preparation of the statement is based on the opening and closing balance sheets, profit and loss account and other relevant information. Cash flow statement starts [...]
In this article we will discuss about:- 1. Meaning and Process of Financial Statement Analysis and Interpretation 2. Objectives of Analysis and Interpretation 3. Procedure 4. Types 5. Techniques or Tools 6. Limitations. Meaning and Process of Financial Statement Analysis and Interpretation: Nature and importance of financial statements are explained in the preceding pages. It has been explained that facts [...]
'Flow' means change. 'Funds' is interpreted as' working capital' in the context of funds flow statement. Thus, 'Funds flow' is 'change in working capital'. Flow of funds implies any changes in working capital. These changes are a continuous process, day after day, as and when transactions take place. So, the changes in working capital may be called 'Flow'. It can [...]