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Unformatted text preview: 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 flolast year?...
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This note was uploaded on 10/19/2011 for the course FINANCE 302 taught by Professor Staff during the Fall '10 term at East West University, Chicago.
- Fall '10