Organizations use working capital to run their operating activities. Fund flow is a means for changing working capital. Several fund inflows and outflows activities are carried throughout an accounting period to ascertain the net fund flow left at the end of a financial year. Understanding the concept of fund flow statement one may require analytical as well as conceptual skills. Interpretation funds flow statement assignment help is provided by experts of Sample Assignment to assist students in writing excellent homework.
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At the end of each accounting period, two statements are prepared by the organization when is the balance sheet, and the other is a statement of profit and loss. Both the statements depict the working capacity and efficiency of the organization, but they miss out on the movement of funds within the organization which affects daily operations. Every organization must know the movement of funds to determine the allocation of funds in future.
In some cases, a business may have a certain profit in a financial year but does not have a sufficient amount of liquid funds to pay shareholders dividends. Tracking of fund flow is necessary to ensure that the organization process is performed efficiently and effectively. It also helps in the identification of the strengths and weaknesses of the financial structure of the business. Public finance and taxation assignment help will assist you to understand the concept of interpretation of fund flow statements.
Fund flow statement is an essential financial tool that helps in monitoring and regulating working capital with correspondence to business operations. It can be used by the financial analyst in various forms such as:
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