Fund Flow Statement
1 min read
Updated 29 Sep 2026
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AI summary
Sources and uses of long-term funds, and how working capital changed.
3 sections
What it shows
How long-term funds were raised and used between two Balance Sheets, and the resulting change in working capital. It is used mainly by lenders and in older analysis; companies now prepare a Cash Flow Statement instead.
Format
| Sources of funds | Uses of funds |
|---|---|
| Funds from operations (profit + depreciation and other non-cash items) | Purchase of fixed assets and long-term investments |
| Issue of capital, long-term loans raised | Repayment of long-term loans |
| Sale of fixed assets and investments | Dividends / drawings, tax paid |
| Increase in working capital (balancing figure) |
Schedule of changes in working capital
List each current asset and current liability at the start and end of the year. The net increase or decrease must match the balancing figure above.
Fund flow looks at working capital as "funds"; cash flow looks only at cash. Banks often ask for both for loan renewals.
PreviousCash Flow Statement (indirect method) Next in Financial Statements Receivables and payables ageing
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