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what is the use of funds flow statement? how to analysis the balance sheet in company?
I think you have the answer in your question itself- when you asked about the analysis of the Balance Sheet of a Company.
Funds Flow statement depicts the change in the Working Capital in any business. This can be arrived at by deducting 'Application of Funds' to 'Sources of Funds' (Inflow of Funds - Outflow of Funds). Here, Sources of Funds can be 'Capital' or 'Profit and Loss Appropriation' ('Retained Earnings') and Application of Funds can be 'Land', 'Building, 'Plant and Machinery', etc.
This is another form of showing the Balance Sheet of any company.
Hope this information helps. In case you need further information, please let me know.
Funds Flow statement depicts the change in the Working Capital in any business. This can be arrived at by deducting 'Application of Funds' to 'Sources of Funds' (Inflow of Funds - Outflow of Funds). Here, Sources of Funds can be 'Capital' or 'Profit and Loss Appropriation' ('Retained Earnings') and Application of Funds can be 'Land', 'Building, 'Plant and Machinery', etc.
This is another form of showing the Balance Sheet of any company.
Hope this information helps. In case you need further information, please let me know.
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Cash flow statement.xls
Understanding Off Balance Sheet Accounting[1][1 ].2003 - Wiley.pdf
