Hi I would like to know the contents which define the Funds Flow Statement which need to be included in the MBA Project report?

Fund Flow Statements actually summarize a firm’s inflow and outflow of funds. Simply put, it tells investors where funds have come from and where funds have gone. The statements are often used to determine whether companies efficiently source and utilize funds available to them.

Fund flow statements are prepared by taking the balance sheets for two dates representing the coverage period. The increases and decreases must then be calculated for each item. Finally, the changes are classified under four categories: (1) Long-term sources, (2) long-term uses, (3) short-term sources, (4) short-term uses.

Fund flow statements can be used to identify a variety of problems in the way a company operates. For example, companies that are using short-term money to finance long-term investments may run into liquidity problems in the future.

Meanwhile, a company that is using long-term money to finance short-term investments may not be efficiently utilizing its capital.

OBJECTIVES OF THE STUDY INCLUDES:

To know the operational efficiency of

To show the manner in which the operations have been financed , and how the financial resources have been used.

To analyze the movement of funds between the dates of two balance sheets in period of study.

To identify the changes in the working capital in between above mentioned year.
To improve the financial performance of the company.

It focuses attention on resources available for capital investment.

They provide useful guide to creditors & lenders