Funds Flow Analysis And Cash Flow Analysis
Given below are the balance sheets of bharathy ltd. For a period of three years as at 31st march each.
- Depreciation provided in the books:
- 2009-10: Rs.6 Lakhs; 2010-11: rs.8 Lakhs; 2011-12: rs.10 Lakhs
- A part of the debentures was converted into equity at par in september 2010.
- There was no sale of fixed assets during the period.
As you are the management accountant of the concern, the management seeks your advice on the liquidity position of the company. Analyse the case and advice the management using funds flow analysis.
- Calculate funds from operations.
- Prepare schedule of changes in working capital.
- Prepare funds flow statement.
- Calculate current ratio and liquidity ratio.
- Based on the above workings suitable advice may be given to the management.
Tags : Accounting For Managers - Funds Flow Analysis And Cash Flow Analysis
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