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    Cashflow and Fund Flow

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    Harking Castro Reyes
    This document provides information on cash flow statements and fund flow statements. It defines cash flow statements as showing the actual cash inflows and outflows of a company. Fund flow statements indicate changes in balance sheet items between periods and show the sources and uses of funds. The document outlines the objectives, components, advantages and disadvantages of both cash flow statements and fund flow statements.

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    Cashflow and Fund Flow

    Uploaded by

    Harking Castro Reyes
    307 views17 pages
    This document provides information on cash flow statements and fund flow statements. It defines cash flow statements as showing the actual cash inflows and outflows of a company. Fund flow statements indicate changes in balance sheet items between periods and show the sources and uses of funds. The document outlines the objectives, components, advantages and disadvantages of both cash flow statements and fund flow statements.

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    Cash flow and Fund flow

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    Cashflow and Fund Flow.ppt

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    This document provides information on cash flow statements and fund flow statements. It defines cash flow statements as showing the actual cash inflows and outflows of a company. Fund flow statements indicate changes in balance sheet items between periods and show the sources and uses of funds. The document outlines the objectives, components, advantages and disadvantages of both cash flow statements and fund flow statements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    307 views17 pages

    Cashflow and Fund Flow

    Uploaded by

    Harking Castro Reyes
    This document provides information on cash flow statements and fund flow statements. It defines cash flow statements as showing the actual cash inflows and outflows of a company. Fund flow statements indicate changes in balance sheet items between periods and show the sources and uses of funds. The document outlines the objectives, components, advantages and disadvantages of both cash flow statements and fund flow statements.

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    © All Rights Reserved
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    CASH FLOW

    AND
    FUND
    FLOW
    PRESENTED BY:-
    ARHAAM ANSARI
    ROLL NO:-9
    CASH FLOW STATEMENT
    Cash flow statement is the actual movement of
    cash into and cash out of an organisation.The
    flow of cash into the business is called as cash
    inflow or positive cash flow and flow of cash
    out of the firm is called cash outflow or
    negative cash flow.
    The difference between inflow and outflow
    of cash is the net cash flow.
    OBJECTIVE OF CASH FLOW
    STATEMENT
     To determine cash requirements.
     To determine cash position (inflow &
    outflow)
     Efficient and effective cash
    management.
     To identified liquidity position.
     To help in dividend decisions
     Provide information in proper
    manner.
    Particular Amount
    1. Cash flow from operating
    activities:-
    Net Profit:- …………….
    Add:-decrease in current assets
    increase in current liabilities
    Less:-increase in current assets
    decrease in current liabilities
    Add:-Non cash /non-operating exp..
    depreciation
    Goodwill
    Patents
    intt.on
    debentur
    e
    Less:-Non-cash
    /Non-operating
    income
    Dividend
    Income
    Profit on sale of Fixed assets
    Intt.income
    add:-Proposed Dividend
    Add:-Transfer to reserve
    Add:-Interium dividend
    Particular Amount

    2.Cash flow from investing activity


    sale of assets ……………………..
    purchase of assets (…………………..)
    dividend ……………………
    received
    Net cash used in
    …………….
    3.Cash flow from financing activity
    investing
    activity
    Issue of shares …………………….
    Redemption of shares (…………………...)
    Loan from bank ……………………
    Net cash used in financing ……………..
    activity
    ADVANTAGES OF CASH FLOW
    STATEMENT
    I. Helps to evaluate the current cash position.
    II. Projected cash flow helps to know the future
    cash position.
    III. It helps in taking loan form banks and other
    financial institutions.
    IV. Helps the management in taking short-term
    financial decisions.
    V. Statement explain the causes for poor cash
    position.
    DIS-ADVANTAGES OF CASH
    FLOW STATEMENT
    I. It ignores non-cash transactions.
    II. Not suitable for income statement.
    III. Cash flow statement gives only a narrow
    picture of working capital as compare fund
    flow statement.
    FUND FLOW STATEMENT
    Fund flow statement indicates the amount
    of change in various balance sheet items
    between two accounting dates.It shows
    the source and use of funds during an
    accounting period.
    In another words , it is a
    statement that shows how the funds are
    obtained and how they are put into use.
    STEPS INVOLVE IN THE
    PREPRATION OF FUND FLOW
    STATEMENT
    ADVANTAGES OF FUND FLOW
    STATEMENT
     Helps in knowing the sources & use of fund.
     Helps in improving working capital position.

     Helps in assessing the efficiency of management


    utilization of fund.
     Helps in planning investment of funds.

     It show the relation-ship between working


    capital and net income.
     It evaluate post financial performance.
    DIS-ADVANTAGES OF FUND
    FLOW STATEMENT
     It ignore the non-fund items.
     It is not original but just a systematic re-
    arrangements of fund.
     Fund flow statement is basically historic in
    nature.

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