Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

CASH FLOW STATEMENT

Veerababu (IT employee) (45 Points)

20 November 2010

I would like to know about Cash flow and fund flow statement in organization. Please share me if any examples of practly.

Reply
Follow
Share

4 Replies

kashish (article hira motors ) (25 Points)
Replied 20 November 2010

vehleee

Upgrade to CAclubindia Pro. Subscribe Now!

sameer C (manger Costing and accounts) (62 Points)
Replied 23 November 2010

According to me most of the company used cash flow statement to know their cash position and expected cash flow so they can plan their payment for smooth running of the business.

Cash flow statement show from where cash has come and how it was spent

where as in fund flow statement you will know from where fund has come and it is apply.it can be in the form of cash, invesment, debtors or any form of assets

Lakshmi (Student) (1836 Points)
Replied 23 November 2010

Fund Flow Statement

Fund Flow Statements summarize a firm’s inflow and outflow of funds. Simply put, it tells investors where funds have come from and where funds have gone. The statements are often used to determine whether companies efficiently source and utilize funds available to them.

Cash Flow Statement

Complementing the balance sheet and income statement, the cash flow statement (CFS), a mandatory part of a company's financial reports since 1987, records the amounts of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent. Here you will learn how the CFS is structured and how to use it as part of your analysis of a company

A company can use a cash flow statement to predict future cash flow, which helps with matters in budgeting. For investors, the cash flow reflects a company's financial health: basically, the more cash available for business operations, the better. However, this is not a hard and fast rule. Sometimes a negative cash flow results from a company's growth strategy in the form of expanding its operations.

By adjusting earnings, revenues, assets and liabilities, the investor can get a very clear picture of what some people consider the most important aspect of a company: how much cash it generates and, particularly, how much of that cash stems from core operations.