Funds flow statement query

WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES

DECREASE IN WORKING CAPITAL MEANS:-

1. EITHER DECREASE IN CURRENT ASSETS
2. OR INCREASE IN CURRENT LIABILITIES.

EXAMPLE: 

DECREASE IN CURRENT ASSETS

• DEBTORS (31.03.2011) = RS. 20,000
• DEBTORS (31.03.2012)= RS. 10,000  ==> SOME MONEY RECEIVED FROM DEBTORS ==> FUND

• DECREASE IN WC = RS. 10,000

INCREASE IN CURRENT LIABILITIES

• CREDITORS (31.03.2011) = RS. 50,000
• CREDITORS (31.03.2012) = RS. 80,000 ==> SOME MONEY RECEIVED FROM CREDITORS==> AGAIN FUND
• INCREASE IN WC = RS. 30,000

I HOPE YOU UNDERSTOOD!!!!