The book Inflation Adjusted Funds Flow Statements was written by author Michael F Van Breda Here you can read free online of Inflation Adjusted Funds Flow Statements book, rate and share your impressions in comments. If you don't know what to write, just answer the question: Why is Inflation Adjusted Funds Flow Statements a good or bad book?
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He terms this a distributable funds statement, which is really a misnomer since it is actually a modified sustainable income statement. This should be ap- parent from the numbers two-thirds of the way down which may be compared with those in Exhibit IV. Once sustainable net income has been calculated, one has the sus- tainable funds (net of depreciation) that were available in the past year to fund increases in net working capital and to finance a dividend. It is only necessary to fund these tw...o items, since the depreciation charges have already taken care effectively of investment over the year. The traditional SCFP inserts the actual increase in working capital at this point as may be seen in Exhibit III where the increase for 1977 was $259, 000. Rappaport suggests that this figure is potentially mis- leading for two reasons. Firstly, the end-of-year net working capital figures may not reflect the normal working capital figures over the year. This might be due to window-dressing, but is more commonly due to the financial year-end being coincident with the end of an operating cycle.
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