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Answer Posted / indranil sen
FUND FLOW IS ANALYSIS SHOWING THE SOURCES AND APPLICATION
OF FUND OVER A CERTAIN PERIOD OF TIME UNDER CONSIDERATION.
IT IS REPRESENTED BY THE CHANGES IN WORKING CAPITAL AND
INTERACTION BETWEEN THE CURRENT ASSETS, CURRENT
LIABILITIES, NON-CURRENT ASSETS AND NON-CURRENT
LIABILTIES.IT SHOWS HOW A COMPANY USES ITS CURRENT OR NON-
CURRENT ASSETS TO MEET ITS CURRENT OR NON-CURRENT
LIABILITIES. IT SHOWS THE COMPANY'S PRUDENCY TO MAINTAIN
LIQUIDITY TO MEET ITS CURRENT AND FUTURE OPERATIONAL
ACTIVITIES AND MEET ITS EXPANSION PLANS.
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