Fund Flow Statement Explained with Example | Working Capital + Sources & Uses

📊 Download the Excel file used in this video: 👉https://myconciergecpa.com/fund-flow-statement-a-complete-guide/ (This is the exact workbook I use in the walkthrough.) Struggling to understand Funds Flow Statements? You’re not alone — and by the end of this video, it will finally make sense. In this step-by-step tutorial, I’ll show you exactly how to prepare a Fund Flow Statement using a simple, clean, two-year balance sheet and a fully worked Excel example. This format is still used in accounting courses across India, Pakistan, Bangladesh, and Sri Lanka — and even though it’s not part of U.S. GAAP anymore, the underlying logic is incredibly valuable. You’ll learn how to analyze working capital changes, calculate Funds From Operations, and build a complete Sources & Applications of Funds statement that balances perfectly. 💡 In This Video You’ll Learn: ✔ What a Funds Flow Statement actually is ✔ Why “funds” = working capital (not cash!) ✔ How to prepare the Schedule of Changes in Working Capital ✔ How to calculate Funds From Operations (FFO) ✔ How long-term financing & investing decisions affect working capital ✔ How to build the final Fund Flow Statement ✔ How this connects to the Cash Flow Statement ⏱ Timestamps / Chapters 00:00 – Intro: Why Funds Flow Statements Still Matter 01:48 – What Is a Fund Flow Statement? (Funds ≠ Cash) 02:33 – Working Capital, Funds, and Long-Term Transactions 03:23 – Why Fund Flow Is Still Useful for Students & Professionals 04:37 – Step 1: Schedule of Changes in Working Capital (Rules) 05:18 – Working Capital Logic Table (Sources vs Uses) 06:27 – Step 2: Funds From Operations (Concept + Setup) 07:40 – Step 3: Fund Flow Statement – Sources & Applications 08:26 – Example Overview: What We’re About to Build 08:57 – Example Step 1: Two-Year Balance Sheet Setup 09:23 – Example Step 2: Identify Working Capital Accounts 09:43 – Example Step 3: Working Capital 2024 vs 2025 10:34 – Example Step 4: Change in Working Capital (7,500 Use) 11:03 – Example Step 4 (cont.): Breaking WC Change by Account 12:07 – Example Step 5: Long-Term Sources & Applications (Equity, Loan, Fixed Assets) 13:19 – Example Step 6: Funds From Operations – Full Calculation 14:07 – Example Step 7: Final Fund Flow Statement (Sources = Applications) 15:19 – Fund Flow Statement vs Cash Flow Statement 16:26 – Final Recap: Why This Framework Still Matters 16:45 – Closing: Like, Share & Subscribe for More Accounting Clarity Vsit the blog https://myconciergecpa.com/