Covering funds and working capital, capital invested and factors affecting fund requirements, and fund flow and cash flow statement, this new edition also emphasizes on:

Ø liquidity quotient of a business entity

Ø sources and uses of fund

Ø control on working capital that differentiates business entities from each other

Ø investing and financial activities.

Introduction

1. Funds

· Funds

· Operating cycle

2. Working Capital

· Working Capital

· Flow of Funds

· Need for Working Capital

· Reconciling Increase in Working Capital

3. Capital Invested in Business

· Need to Invest in Cash

· Need to Invest in Receivables

· Need to Invest in Inventory

· Need to Invest in Fixed (Non-Current) Assets

· Determining the Working Capital Requirement

· Future Capital Requirements

· Possible Sources of Working Capital

· Internal Sources

· External sources

4. Factors Affecting Fund Requirements

5. Fund Flow Statement

· The Funds Flow Equations

· The Format

· Funds Flow from Operations

· Statement of Changes in the Working Capital

· Changes in the Financial Position

· Fund Flow Statement Illustrated

6. Preparing a Cash Flow Statement

· Format

· Preparing Cash Flow Statement: An Introduction

7. Interpretation of Cash Flow Statement

· The Need for a Cash Flow Statement

· Cash and Cash Equivalents

8. Solved illustrations

· Summary