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The aim is to algebraically analyze individual changes in non current accounts to refine funds flow calculations.

Funds-Flow Equations.

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The aim is to algebraically analyze individual changes in non current accounts to refine funds flow calculations.
Analyzed transfers and changes in non current assets and equities
Developed equations for calculating individual sources and uses of working capital
Employed an algebraic system for cash-flow analysis
Created relationships between funds flow and financial statements
Produced a set of equations linking income statements and balance sheets
Facilitated the elimination of non fund items
Enhanced adaptability of funds flow concepts for computerized accounting

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This article demonstrates algebraically the sources and uses of working capital, suggesting a method for funds flow analysis.

Glenn L. Johnson (1966) studied this question.

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