Reviews the book "The Meaningful Interpretation of Financial Statements," by Donald E. Miller.

This article is an attempt at explaining more clearly the objectives and reasons underlying the Funds Provided by Operations analysis. The schedule contains nothing new, radical, or magical; it is merely an aid in the explanation, and may serve as a black-and-white reminder to the accounting student of what has happened and what must be done. The main benefit of the schedule, probably, is that its use helps to structure the teacher's explanation, beginning with the known events of the Income Statement and ending with the Working Capital change resulting from that Income Statement. Prior to the introduction of the schedule to the class, there should be a full explanation of the purpose of the Funds Statement and of the sources and applications of funds, with operations stressed as one (albeit important) source. The purpose of the present analysis, then, is to determine what net effect the revenue and expense items thereon have had on working capital. A line-by-line explanation of the schedule seems to work best.

Reviews the book "Fundamental Accounting Principles," by William W. Pyle and John Arch White.