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statement of sources and application of funds Older type of financial statement (replaced by cash flow statement) summarizing transactions that increased the working capital, such as net income, sale of securities, depreciation, and deference of taxes, or used up cash, such as purchase of machinery and equipment, payment of dividends, repayment of debts, payment of taxes. Also called sources and applications of funds statement, statement of changes in financial condition, statement of changes in financial position, or just funds statement.
