The document provides information on funds flow statement (FFS) including its concept, preparation on total resource basis and cash basis, significance and interpretation. It discusses the learning objectives of FFS, introduction and concept of FFS, how it is prepared from the balance sheet and profit and loss account, and the importance of FFS in analyzing sources and uses of funds in a business.
Fund flow statement is a statement that compares the two balance sheets by analyzing the sources of funds (debt and equity capital) and the application of funds (assets) and its reasons for any differences.
capital structure
,
goals and significance of capital structure
,
target capital structure
,
does capital structure matter
,
modigliani and miller theory
Fund flow statement is a statement that compares the two balance sheets by analyzing the sources of funds (debt and equity capital) and the application of funds (assets) and its reasons for any differences.
capital structure
,
goals and significance of capital structure
,
target capital structure
,
does capital structure matter
,
modigliani and miller theory
Advanced audit
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Aminul Islam Milon
Md. Maznur Rahman
Md. Tarikul Islam Tarif
Md. Mamunur Rahman
Subho Placid Besra
Rahid Hasan
Bikash Kumar
Md. Ali Haidar
Md. Alomgir Hosen
Khairul Basar
Risul Islam Tonu
Md. Asik Mahamud
Ahsan Ullah
Tanveer Shaharear
Md. Imran Hossain
Arif Hossain (leader)
Md. Aslam Hossain
Md. Faysal Alam
Md. Junayed
Md. Nazrul Islam
Md. Rasel Mollah
This is a useful template depicting the analytical method used by Banks & Financial Institution to assesse the working capital requirement of Customer.
Presentation on Budget, budgeting and budgetary control..
Contents-
1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
7) Zero-based budgeting
8) Difference in Traditional & Zero based budgeting.
Advanced audit
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Aminul Islam Milon
Md. Maznur Rahman
Md. Tarikul Islam Tarif
Md. Mamunur Rahman
Subho Placid Besra
Rahid Hasan
Bikash Kumar
Md. Ali Haidar
Md. Alomgir Hosen
Khairul Basar
Risul Islam Tonu
Md. Asik Mahamud
Ahsan Ullah
Tanveer Shaharear
Md. Imran Hossain
Arif Hossain (leader)
Md. Aslam Hossain
Md. Faysal Alam
Md. Junayed
Md. Nazrul Islam
Md. Rasel Mollah
This is a useful template depicting the analytical method used by Banks & Financial Institution to assesse the working capital requirement of Customer.
Presentation on Budget, budgeting and budgetary control..
Contents-
1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
7) Zero-based budgeting
8) Difference in Traditional & Zero based budgeting.
Financial Statements and Business Model Canvas_Nov5th.pptxRashmi Gowda KM
In detail description about Financial Statements which includes Balance sheet, Income statement, Cash Flow and Statement of Retained Earning. Also there is explanation on Business Model Canvas
Not-for-Profit Financial Reporting: How to Convert Your Financial Statements ...McKonly & Asbury, LLP
This webinar was hosted by McKonly & Asbury Partner, Janice Snyder, and Principal, Jim Shellenberger, and addressed the requirements of Accounting Standard Update 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The presenters reviewed the new requirements under this standard and converted a full set of not-for-profit financial statements from the previous requirements to the new requirements. This was a step-by-step, page-by-page review of not-for-profit financial statements.
Cash FlowsIntroductionThe Statement of Cash Flows is the third.docxcravennichole326
Cash Flows
Introduction
The Statement of Cash Flows is the third basic financial statement that is presented with the Balance Sheet and the Income Statement on a periodic basis. By reviewing the changes in cash due to operations, investing activities, and financing activities, the analyst can better ascertain how cash was generated and spent.
The Statement of Cash Flows
The statement of cash flows was developed in the 1970s and 1980s as a reaction to the need for management to reconcile net income to available cash. Many managers questioned how a company could report a profit, but have no money, or report a loss and still have cash available; the statement of cash flows was developed to explain how the income statement related to the available cash. The statement of cash flows can help managers and business owners to understand the sources and uses of cash, and predict future cash requirements so that needs may be met.
The cash flow statement focuses attention on a firm's ability to generate cash internally, its management of current assets and current liabilities, and the details of its investments and its external financing (Libby, Libby, & Short, 2004). It is designed to help both managers and analysts answer important cash-related questions such as these:
Will the company have enough cash to pay its short-term debts to suppliers and other creditors without additional borrowing?
Is the company adequately managing its accounts receivable and inventory?
Has the company made necessary investments in new productive capacity?
Did the company generate enough cash flow internally to finance necessary investment, or did it rely on external financing?
Is the company changing the makeup of its external financing?
These questions and others can be answered through the preparation and examination of the statement of cash flows.
Operating, Investing, and Financing Activities
The statement of cash flows has three main sections: (a) cash flows from operating activities, which are related to earning income from normal, recurring operations; (b) cash flows from investing activities, which are related to the acquisition and sale of productive assets; and (c) cash flows from financing activities, which are related to external financing of the enterprise. The net cash inflow or outflow for the year is the same amount as the increase or decrease in cash and cash equivalents for the year on the balance sheet. Cash equivalents are highly liquid investments with original maturities of less than three months. The operating activities section of the statement of cash flows can be prepared using either the direct or indirect method; the investing and financing activities sections are always prepared directly.
Direct Method of Determining Cash Flows from Operating Activities
The direct method for reporting cash flows from operating activities separates all of the operating transactions that result in either a deb ...
Cash is the most liquid of assets.
Offers both liquidity and flexibility.
Both the beginning and the end of a company’s operating cycle.
Contrast: Accrual accounting and Cash basis accounting.
Net cash flow as the end measure of profitability.
Cash flow analysis helps in assessing liquidity, solvency, and financial flexibility.
Role of Financial Statements
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Accounting Polices
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Accounting standards are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in financial statements.
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This presentation tells about the AS 7 on Cash Flow Statement.
2018 Community Health Center Accounting Standards UpdateJones & Roth
In this session, we will discuss several sweeping accounting standards updates that will specifically affect Community Health Centers. Specifically, there are three new upcoming standards updates that will require changes in financial reporting and presentation; recording of leases, revenue recognition from contracts, and changes in financial statement presentation for non-profit organizations.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
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Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
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Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
1. FUNDS FLOW ANALYSIS
• Learning objectives:
• Concept of funds flow statement
• Preparation on total resource basis
• Preparation on cash basis
• FFS on working capital basis
• Significance of FFS and its interpretation.
2. Introduction and concept of FFS
Over a period of time, every item of B/S
undergoes change. While a business may
show considerable profits, there may not be
adequate cash to meet business needs.
Or, in spite of borrowings, funds may not be
available to support inventory. Statement
of changes in financial position (SCFP)
answers all these questions.
3. Funds Flow Statement
• Funds Flow Statement (FFS) is also known as:
• Cash flow statement (presentation is different)
• Statement of sources and uses / applications of
funds
• Statement of money provided and its disposition
• Summary of financial operations
• Financial expansion and replacement
• Statement of changes of financial position(SCFP)
4. FFS – the concept
• FFS captures movement of funds, whereas
B/S indicates static picture of sources and
uses of funds. FFS shows how did the
business meet its expenses, liabilities and
create assets during the year, how did it pay
taxes and dividends and the sources of those
funds. FFS is complementary to B/S, and
PL statement.
5. Preparation of FFS on total
resource basis
• Take difference of corresponding values in B/S of
2 years.
• Positive differences on assets side and negative
differences on liability side should be grouped.
• Negative differences on assets side and positive
differences on liability side should be grouped.
• When added up all items in each group, both totals
will tally, indicating arithmetical accuracy.
• Thus FFS is prepared and presented as required by
management.
6. FFS on cash basis
• Classify net B/S changes between 2 points
in time into changes that increase or
decrease cash.
• Classify from PL A/c. factors that increase
or decrease cash.
• Reclassify this information into a source of
funds and uses (or application) of funds.
7. Sources of funds that increase
cash
1. Net decrease in any asset other than cash
and fixed assets
2. Decrease in gross block or gross fixed
assets
3. Net increase in any liability
4. Proceeds from sale of any equity or pref.
shares
5. Funds from operations
8. Uses of funds that decrease cash
• Net increase in any asset other than cash
and fixed assets
• Gross increase in fixed assets
• Net decrease in any liability
• Retirement / redemption of shares or bonds
or purchase of shares
• Dividend pay out
9. FFS on working capital basis
• Increase in CA results in increase in WC
• Decrease in CA results in decrease in WC
• Increase in CL results in decrease in WC
• Decrease in CL results in increase in WC
• This statement is frequently used by bankers to
determine whether minimum WC requirement is
maintained by borrowers and to monitor
borrowers’ cash credit a/c. or WC loan A/c.
10. Significance of FFS
• Detection of imbalances in cash flows and
appropriate action
• Divisional performance appraisal
• Evaluation of firm’s financing
• Planning for future financing
11. Advantages-Funds Flow
Statement
• 1. It gives the figure of flow of funds from
operations. This is more relevant than the
net profit revealed by PL A/c. Depn and
amortization is charged at the discretion of
management and hence, profit, which is
after deducting above two charges, may not
be representative of cash generated. In
FFS, depn and non-cash charges are added
back.
12. Advantages - FFS
• 2. Comparison of the figures of working
capital budget with the figures of sources
and applications of funds in the FFS enables
management to ascertain how far the budget
has been implemented. It also helps in
preparation of budget for the subsequent
period.
13. Limitations of Funds Flow
Statement
• FFS shows flow of net working capital,
which includes Stock of goods, Prepaid
expenses, which do not contribute to the
short term ability of the enterprise to pay its
debts or liabilities. Because of these
limitations, AS 3 (Revised) has done away
with it and has recommended preparation of
Cash Flow Statement.
14. Distinction- FFS & CFS.
• 1. FFS deals with changes in working
capital position while CFS deals with
changes in cash position between two
points of time.
• 2. FFS does not contain opening and
closing balances of cash and cash
equivalents, but CFS gives both.
15. Distinction between FFS & CFS
• 3. FFS records sources of funds and
application of funds, resulting in increase in
working capital (WC) or decrease in WC.
In case of CFS, difference is reflected in
opening and closing cash and cash
equivalents. 4. Statement showing WC
changes is prepared along with FFS, but no
such statement is prepared in case of CFS.
16. Distinction between FFS & CFS
• 5. FFS can be prepared if CFS by indirect
method is made available. But one cannot
prepare CFS from FFS. For CFS, statement
showing changes in WC is required. To
prepare CFS by direct method, cash
received from Debtors and paid to Creditors
and to employees, etc. are required.
17. Distinction between FFS & CFS
• 6. FFS is relevant in estimating firm’s
ability to meet its long term liabilities. CFS
is more relevant in estimating firm’s
capacity to meet its liabilities over a short
term. 7. FFS is not required by Companies
Act or SEBI’s regulations. CFS must be
prepared and circulated to shareholders of
company, as per Co. Act and SEBI’ rules.
18. Distinction between FFS &
Income Statement or PL A/c.
• 1. FFS matches funds raised during a period
and funds applied or used. PL A/c. matches
income and expenditure over a period.
• 2. FFS tells increase or decrease in NWC
during a period , whereas PL A/c. reveals
net profit or loss during the period.
• 3. FFS deals with revenue and capital items,
whereas PL deals with only revenue items.
19. Distinction - FFS & PL A/c.
• 4. For preparing FFS, Income statement or
PL is required. Income statement can be
prepared without reference to FFS.
• 5. Preparation of FFS, though optional, is
advantageous. Income statement is must.
• 6. No prescribed format for FFS. But for
PLA/c. prescribed format must be followed
by banks, ins.co. and electricity companies.
20. Dist-Statement Showing Changes
in Working Capital & FFS
• 1. SSCWC notes the effect of changes in
each one of the current assets and current
liabilities on WC. FFS notes the effect of
items other than current assets and current
liabilities on WC.
• 2. Items appearing in SSCWC are
constituents of WC, but items appearing in
FFS are not constituents of WC.
21. Distinction - SSCWC and FFS
• 3. Only BS is required to prepare SSCWS,
whereas to prepare FFS, PLA/c. and BS are
required.
• 4. SSCWC is not presented in T form, but
FFS can be presented in T form.
22. Why FFS is important
• Remember these words:
• In business,
“CASH IS KING”
Cash Flow Statement will be taken up in
next session.
23. Assignment
• Prepare FFS or statement of sources and uses or
application of funds from the Balance Sheet and
Profit and Loss A/c. of any company. Comment
on your findings.
• Prepare cash flow statement showing:
Funds generated from operations,
Funds generated from investing activities, and
Funds generated from financing activities
Compare with cash flows of earlier year and
comment on observations.
24. Summary
• We have studied:
the concept of cash flow & funds flow
how to prepare and FFS?
what are the methods of presentation of FFS?
what is Cash Flow statement under Clause 32
of Listing Agreement with stock exchange?
what is the utility of FFS and interpretation?
what is the significance of FFS?
25. Case study – Reliance Industries
• Preparation and Study of
Funds Flow Statement of
Reliance Industries Limited
for the year 2007-08.
Source:
Annual Report of Reliance Industries Limited
for Financial Year 2007-08
26. Funds Flow Analysis
-Reliance Industries Limited
• Year ended 31st March, 2008
SOURCES OF FUNDS Rs. Crores
• Profit After Tax (PAT) 19506
• Add: Depreciation 4692
• Equity share warrants 1682
• Unsecured Loans 11623
• Increase in Current Liab.&Prov 5460
• Increase in Deferred Tax 890
• Total Sources 43853
27. Funds Flow Analysis-
Reliance Industries Ltd.:Uses
• Acquisition of Fixed Assets 20174
• Investments 5812
• Inventory 2111
• Sundry Debtors 2495
• Cash and Bank Balances 2445
(continued on next slide)
28. Funds Flow Analysis-
Reliance Industries Ltd.:Uses
• Loans and Advances 5852
• Other Current Assets 73
• Secured Loans repaid 2969
• Sub-total 41931
• Increase in Reserves 1781
• Others 141
• Total Applications 43853
29. Funds Flow Analysis-
Reliance Industries Limited
• Long term Sources: Rs. Crores
• 43853 minus 5460 (CL+)-890(Def.tax)
=37503
• Long term applications:
• 27104(FA)+5812(Inv)+2969(loans)=35885
• (continued on next slide)
30. Funds Flow Analysis-
Reliance Industries Limited
• Short term sources = 5460+890=6350 crores
• Short term uses = 12976 crores(CA)
• Unsecured loans + share warrants=13305 crores
plus part of profits have been used for acquiring
fixed assets of 21704 crores
31. Funds flow analysis-
Reliance Industries Limited
• CA increase 7051 crores as against CL
increased by 5280 crores.
• Note: Statement of changes in working
capital is not prepared as a separate
statement, but changes ae included in
Sources and Uses of funds.
32. Next Quiz
• 11th December, 2010. Date will be
confirmed and time, and venue will be
announced by Exam and Academics dept.
• Syllabus – All what has been taken up in
class till 5th December, 2010.
• Mis Sem Exam or one more quiz will be
conducted even earlier or this date may be
advanced or pre-poned.