Basis information: The techniques used in the preparation of SCFP based on the working capital concept of the funds very from on business enterprise to another. But the basic information has to be obtained from the following common sources:

Comparative balance sheets: Comparative balance sheets for the beginning and the end of the year disclose the change in assets, liabilities and owner(s) equity items with the help of additional increase and decrease columns. This provides a rough idea about the changes in working capital and flow of funds.
The income statement: The income statement is also an essential document in the preparation of SCFP although in its absence the statement of retained earnings or the reserves and surplus items are used to ascertain the working capital from operations. It is enough to have income statement of only for the current accounting period. Income statement has to be suitably adjusted for items such as depreciation, loss or gain on the sale of non-current assets, etc. to calculate the working capital from operations.
Supplementary data: In addition to the comparative balance sheets and income statements for ascertaining sources and application of working capital, supplementary data are also imperative for adjustments especially for digging hidden transition. For example, the company might have sold an asset on will ciliate to determent the book value of the asset as also the source and applications fo working capital.

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