The All-Inclusive Statement of Funds.

Abstract The statement of funds is a time-honored statement, undergoing a metamorphosis from the simple Where Got Where Gone statement of William Morse Cole to the sophisticated variable statements of today. This variability in statements is seen in the following different objectives corresponding to the two major forms of statement presently in use to show the change in working capital for the year and to show the change in cash for the year. The statement accomplishing the second objective is merely an extension of the first, whereby the change in working capital is modified to express the change in cash. This modification is expressed in two forms; the balance sheet form and income statement form. Depreciation and amortization may be listed as sources of cash in the balance sheet form, but invariably are eliminated in arriving at the net income or net loss in the income statement form. The statement should show enough information parenthetically so as to permit a reconciliation of the balance sheet at the beginning of the period with the balance sheet at the end of the period, category by category.