[anil john]

Easy methods to do problems persisting to cash flow and fund flow.

[oopsyaar]

Cash Flow Statement : Statement showing changes in inflow &
Outflow of cash during the period.

Methods of cash flow:1.Direct Method : presenting
Information in:Statement of A. operating Activities, B.
Investment Activities C.Financial Activities
2.Indirect Method :uses net income as base & make
Adjustments to that income(cash & non-cash)transactions.

Funds Flow Statement :Statement showing the sorce &
Application of funds during the period.
Major Difference:

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.

FFS is showing the fund for the future activities of the
Company.
:rolleyes:

[oopsyaar]

Cash flow depicts the inflow and out flow of cash between two accounting periods.
Fundflow depicts the inflow and outflow of working capital

Fund flow statement r meant 4 long term financial analysis while cash flow r used 4 short term cash planning.