Funds flow analysis provides an insight into the movement of funds and helps in understanding the change in the structure of assets, liabilities and owners’ equity.
(ii) how far short-term sources of financing have
been used to support capital investment?
(ii) how much funds have been generated from the operations of a business?
(iii) to what extent the enterprise has relied on external sources of financing?
(iv) what major commitments of funds have been made during the year?
(v) where did profits go?
(vi) why were dividends not larger?
(vii) how was
it possible to distribute dividends in excess of current earnings or in the
presence of a net loss during the current period?
(viii)why are the current assets down although the income is up?
(ix) has the liquidity position of the firm improved?
accounted for an increase in net current assets despite a net loss for the
the increase in working capital financed?