Understanding Cash and Fund Flow Concepts

We have designed this course to break down the concepts of cash flow and fund flow into their simplest form. We have structured the course into two modules. Each contains case studies on how to independently put into practice the conceptual aspects of the cash flow and fund flow statement analysis. We explore the reasons why both cash flow and the fund flow statements have to be prepared separately from existing financial statements. We outline the meaning of cash flows, the importance of cash generation, the limitations of financial statements and how to track the cash flows. Learn to record cash flows, including cash and cash equivalents. We then explain how to identify and exclude non-cash items in the balance sheet and the income statement by not including them in the cash flow statement. We demonstrate applying the ‘golden rule of cash flow’ to all balance sheet and income statement items.

There are three mandatory financial statements required of any company. We will explore these and the importance of each statement as required by the accounting standard. Learn to classify the cash flow statements into different categories of activities. Become familiar with the format for preparing the cash flow statement before proceeding to case studies on preparing them. In the second module, we teach the concepts and the importance of the fund flow statement. Research the sources and uses of funds. We break down the concepts of working capital and how the working capital operates to explain the working capital cycle. We investigate the relation between working capital, changes in the current assets and current liabilities. We show you how to apply these concepts to prepare different statements of fund flow.

By the end of this course, you would have understood the concepts of cash and fund flow statement analysis. We have methodically taught you the step-by-step process of preparing the cash and fund flow statements in a Microsoft Excel worksheet, using case studies to cement your understanding of the economic standing of a business. This course is suitable for everyone and requires no prior accounting or finance background knowledge. So check out this course today.