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 [...]
Funds flow statement reflects the change in working capital during a period through those transactions which affect the funds - termed as 'cross transactions'. The change is shown as a 'consolidated figure'. However it is preferable to prepare the 'working capital statement' which shows the complete details of the contribution of each item of current asset and current liability towards [...]
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 [...]