cash flow

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Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2009 dear all

i would like to know the difference between Fund flow statement and Cash flow statement

reply me as early as possible

Jag Bhushan Sharma

Jag Bhushan Sharma (Expert)
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29 December 2009 The main difference between CFS and FFS is that CFS explains the reasons for changes in cash and cash equivalents between two given dates. On the other hand FFS explains the changes in worksing capital between two given dates. If you need to know more on any particular point, you are most welcome.

Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2009 Sir in CFS also it it explains changes in working capital between two given dates if you dont mind could you please elaborate the issue if you are free

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Jag Bhushan Sharma

Jag Bhushan Sharma (Expert)
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30 December 2009 In FFS you prepare schedule of changes in working capital. In that you sum up all the current assets including cash and bank and subtract from that the sum of all current liabilities. The difference is working capital. This you do for both the years and find out the difference. For example working capital for 1st year is Rs.100000 and for 2nd years it is 150000. It means working capital has increased by Rs.50000. Now you try to explain the sources from which you received funds and also its applications. But in case of CFS you find out how much cash you received from Operations, Investing activities and Financial Activities. To the total of all the three activities opening cash and bank balance is added to find out the closing Cash+Bank Balance. So now I hope you appreciate the difference between the two. If you still have some doubts, don't hesitate to ask further.

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