Concept of Fund Flow Statement
There are many types of financial documents company makes. Some documents are formal and legal purpose whereas The fund flow statement is a statement that shows the movement of working capital in a fix financial period. The statement that shows the movement of funds into or out of business this into or out of business this statement is called fund flow statement. According to Anthony- Fund flow statement describes the source from which additional funds were derived and the use to which these funds were put. According to Folke- A statement of sources and applications of funds is a technical device designed to analyze the change in the financial condition of business enterprises between two dates. Importance:- 1. It helps in analysis of financial statement like Balance sheet, profit and loss account. 2. It helps to make policy about dividend. 3. It helps to fund allocation according to department wise. 4. It helps in deciding working capital. 5. It helps in the analysis of fina