Learning Outcomes

In this free course, you will learn how to:

• State reasons for preparing separate cash and fund flow statements from existing financial statements
• Compare and analyze the differences between cash and fund flow statements
• Define cash flow and explain the importance of cash flow statements
• Analyze the movement of cash and cash equivalent in the cash flow statement
• Discuss how to apply the ‘golden rules of cash flow’ to all items on the balance sheet and the income statement
• Compute the statement of cash inflow and cash outflow of a given company with the data provided in the case study
• Classify cash flow into different categories such as operating, investing and financing activities
• Define ‘working capital’ and explain how it is generated
• Identify the sources and uses of funds from a balance sheet analysis
• Explain the concept of a fund flow statement
• Discuss the relationship between current assets and current liabilities to the working capital
• Distinguish the formats for preparing financial, cash flow and fund flow statements