ppt on Fund Flow Statement POOJA MEHTA.pptx

Ppt best describes fund flow of the current economic development

1. VASANTRAO NAIK SHIKSHAN SANSTHA MAHAVIDHYALA, KALAMBA, KOLHAPUR NAME OF THE STUDENT:- POOJA MEHTA ROLL NO. :- 30 YEAR:- 2023-2024

2. COMMERCE

3. INTRODUCTION Commerce education can help students get many different kinds of jobs. These include jobs in finance, accounting, marketing, human resources, taxation, and banking. Commerce education also teaches students how to start their own business and make it successful . USES Commerce is important because it helps satisfy the wants and needs of people. It does this by simply making more goods available to more people, or by creating jobs in order for those goods to be transported, advertised and sold. Through this, the nation that these people live in can enjoy a higher standard of living.

4. Subject : Financial Analysis & Control FUND FLOW STATEMENT

5. FUND FLOW STATEMENT Fund means cash and the statement based on this concept is known as cash flow statement Fund means all financial sources which flows through working capital and fixed capital Fund means working capital Current Assets – Current Liabilities F U N D MEANING OF FUND

6. INTRODUCTION Fund means incoming of funds from different sources, it means movements of funds like incoming and outgoing. Fund flow statement shows the changes in funds between two balance sheets of two different dates. It is a statement of sources and uses of funds.

7. What is fund flow statement? A fund flow refers to the inflow and outflow of funds or assets for a company and is often measured on a monthly or quarterly basis. A fund flow statement reveals the reasons for these changes or anomalies in the financial position of a company between two balance sheets. These statements portray the flow of funds - or the sources and applications of funds over a particular period.

8. Why to prepare fund flow statement? A company's financial statements already include a profit and loss statement and a balance sheet. So why is a fund flow statement needed at all? A profit and loss and balance sheet will show a company's financial position, but will not explain the reasons for fluctuations or variations in within the company's financial or cash position A profit and loss and balance sheet will depict two sets of figures - the current and previous year - but will not explain why movement has happened.

9. USES OF FUND FLOW STATEMENT It acts as a tool for allocation of financial resources. It is test of effective use of working capital. It answers complicated questions. It described the financial position of the business operations.

10. ADVANTAGES OF FUND FLOW STATEMENT It used as a tool of financial analysis by financial institution, the management, investors, bankers and other parties to know the changes in financial position. Fund flow statement can play a role as a control device to make the financial planning. Share holders can also an idea about the financial health of an organization. The liquid position and the supplier of the raw materials can be reviewed. The requirement of the funds, availability and when required manager can ensure.

11. RULES FOR PREPARING THE STATEMENT OF CHANGES IN WORKING CAPITAL Increase in current asset, results in increase (+) in working capital. Decrease in current asset, results in decreases (-) in working capital. Increase in a current liability, result in decreases (-) in working capital. Decrease in a current liability, results in increase (+) in working capital.

12. STEPS IN PREPARATION OF FUND FLOW STATEMENT Preparation of Adjusted Profit and Loss Account to find out funds from business operations. Preparation of statement of changes in working capital. Determination of other sources and application of fund.

13. STATEMENT OF CHANGES IN WORKING CAPITAL Assets and Liabilities Previous year Current year Changes in Working capital Increase Decrease A) Current Assets Stock in Trade XXX XXX XXX XXX Debtors XXX XXX XXX XXX Cash Balance XXX XXX XXX XXX Bank Balance XXX XXX XXX XXX Prepaid Expenses etc. XXX XXX XXX XXX Total (A) XXX XXX B) Current Liabilities XXX XXX XXX XXX Sundry Creditors XXX XXX XXX XXX Outstanding Expenses XXX XXX XXX XXX Bills Payable XXX XXX XXX XXX Bank Overdraft etc. XXX XXX XXX XXX Total (B) XXX XXX XXX XXX Net Working Capital (A – B) XXX XXX Increase/Decrease in Working Capital XXX XXX XXX XXX Total XXX XXX XXX XXX

14. SOURCES AND APPLICATION OF FUNDS Sources Rs. Application Rs. 1) Funds from operation XXX 1) Loss from operation XXX 2) Issue of new share capital XXX 2) Payment of dividend XXX 3) Issue of Debentures XXX 3) Purchase of Assets XXX 4) Long term borrowing XXX 4) Payment of tax XXX 5) Sale of investment XXX 5) Redemption of shares XXX 6) Sale of fixed assets XXX 6) Redemption of Debentures XXX 7) Dividend Received XXX 7) Payment of Long term Debt XXX 8) Decrease in working capital XXX 8) Increase in working capital XXX 9) Non trading receipts XXX 9) Purchase of Investment XXX 10) Non trading payments XXX Total… XXX Total… XXX

15. ACKNOWLEDGEMET I would like to express my gratitude to Mrs. Trupti Patil Madam and my principal Mr.Shivaji Patil Sir for giving me this wonderful opportunity to work on this special project . Also, I would like to give special thanks t o my classmates who encouraged me to work on this project