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Fund flow statement

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(Querist)
13 March 2012 Dear All,

I wanna know why reduction in working capital is considered as sources of funds in Fund Flow Statement?

Regards
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
13 March 2012 Reduction in working capital will arise on the result of reduction in current assets or increase in current liability.so it will be treated as sources of fund only.

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