Funds from operations, Cost Accounting

Consider as Illustration. Profit and loss account of TIL demonstrates, that, operations have given gross addition of Rs. 360 million to funds throughout the period. These funds show the sale proceeds of goods and services through the company.

We also identify what part of these funds is utilized for meeting the cost of input as personnel, material and the other operating costs. Separate from these we have also to meet the interest commitments and costs expiration of the machinery and equipment. Though, expiration of costs of the machinery and equipment as depreciation is one item that does not need use of funds in the current period.

 

TOOLS INDIA LTD. Summarized Profit and Loss Account

For the year ended December 31, 2002

121_Funds from Operations.png

*    Other income involves Rs. 1 million profits on sale of furniture.

 

Hence the funds provided from the operations are actually the revenues earned from operations as also non-operating incomes less all instantaneous costs of goods sold needing use of funds. Conversely, this is net income or profit after taxes as well as all the non-cash expenses, as depreciation and amortization.

The funds flow statement would demonstrate funds from operations of TIL given as:

(Rs. in Millions)

Operations                                                               55

Net Income

Add: Depreciation and Amortisation                              11.90

    66.90

Less: Profit on sale of furniture                                    1.00

Total funds provided from operations                            65.90

Posted Date: 4/9/2013 1:40:19 AM | Location : United States







Related Discussions:- Funds from operations, Assignment Help, Ask Question on Funds from operations, Get Answer, Expert's Help, Funds from operations Discussions

Write discussion on Funds from operations
Your posts are moderated
Related Questions
(i) Describe the difference between the balance sheet and the income statement in financial statements of companies. (ii) Give two examples of intangible assets and two exampl

This coursework is intended to help you develop your understanding of shell scripting in both a Windows and Unix environment. You should undertake this coursework in groups cons

Freshly Ground Investments have just made an investment of $550 000 in a new Toyota Hilux (with trailer) delivery vehicle. This vehicle will be used for deliveries and generate rev

The Butchering Department of the Santa Fe Meat Packing Corporation (a process costing corporation, FIFO costing) had 1,500 units, 1/3 completed at the beginning of the period and 1

What is a standard and acceptable variance

First in First Out or FIFO FIFO method is based upon the assumption such stock purchased first is issued first. Prices of stock purchased first are employed to determine the v

tHE FIRST SECTION ASSIGEMTN ANSWER FOR HAMPSHIR COMPANY DECISIONS

Find Out the Cost per Unit Material A is added at the start of a production process. Overheads and Labor are added continuously throughout the production process. At the endi

Cost Book-Keeping In cost account accounts, extensive employ is made of control accounts that are based in the similar principles as those utilized in financial accounts.  Two

Stock control and its Level Management must formulate decisions regarding to the control of stock levels along with a view to minimizing the cost of the company whereas achie