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Fund flow analysis is the analysis of flow of

Fund flow analysis is the analysis of flow of -...

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Fund flow analysis is the analysis of flow of fund from current asset  to fixed asset or current asset to long term liabilities or vise- ver   a. First of all, we make fund flow statement and then stud its cause and effect  deeply and try to find many important facts and information whic can be used in business. It can also solve followin   problems.Q:  - 1. Why are net current assets decreasing after getting high volume of ne    profit?Ans. Fund flow statement is made by take two period ba  ance sheets and  if we study it then we can find that it may po ible that we  are usi  g net profit fo   purchasi  g fixed assets. Statement of changing in working  pital can also show net decrease in working capital.Q:-2.Why did company not issued high dividend, even company had earned high profit in   last year?Ans. You know that dividend is given after seeing the level of fund from operation not net profit. If company has made fund flo
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