What is the diferebnce between Cash flow and fund flow - balance sheet
mathaisunil@yahoo.com Started The Discussion:

hi all can anybody plz tell me what is the diferebnce between Cash flow and fund flow. Reds Sunil

leolingham2000 - Senior Member
CASH FLOW

CASH FLow is the summary statement shows

-money receipts by the organization

-money payments by the organization

-difference of total receipts > total payments , then cashflow is positive.

-difference of total receipts < total payments, then cashflow is negative.

===================================
FUNDS FLOW

THE FUNDS FLOW STATEMENT SHOWS HOW THE SOURCES OF FUNDS
EQUAL THE USES OF FUNDS DURING THE PERIOD COVERED
BY THE STATEMENT.

FUNDS OBTAINED FROM
-SALES OF GOODS
-SALES OF PROPERTIES
-SALE OF STOCK
-BORROWINGS
-OTHERS

ARE RELATED TO THEIR USE FOR
-PURCHASE OF FIXED ASSETS
-PAYMENT OF DEBTS
-DISTRIBUTION OF FUNDS
-OTHER PURCHASES
==============================

REGARDS

LEO LINGHAM

Hemalatha - Contributing Member
Hi Sunil,

Cash Flow:

It measures actual inflow and outflow of cash. It does not consider any accruals.

While drafting a cash flow, you start with the opening balance of cash and summarise the receipts and payments and the resultant figure is the closing balance of cash.

Funds flow:

It measures the working capital of the company. It is excess of current assets over current liabilities.

Consider depreciation : Though an entry is made in the P&L account, cash does not go out (actually it is a book entry). Therefore, while preparing funds flow statement, you have to add this amount to profit.

Similarly, when you sell a asset, you have to account for profit of loss on sale of an asset. You take into account the book value of the asset and find the difference from sale value and estimate your profit. Therefore, if you had accounted for loss, it is again a book entry only and has to be added back to profits.

In the cash flow, you would have considered the actual cash that had come in on sale of the asset.

Moreover, for working out funds flow, you start from the opening balance of accumulated profits and end with the closing balance.

Another way of working the funds flow through balance sheet is finding the difference between the current assets and current liabilities.

Please get back if you require more clarity.

Hi Guys I have a problem in Fund Flow can u guys help me solve this please

 fund_flow_315.doc (334.0 KB, 660 views)
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 activites of the Company

Hi. all the friends i am facing a problem actually i am working in a Construction company in delhi there is large transaction of Cash & Bank & my boss has told me that u will give me monthly Project wise Cash Flow & Fund Flow so how can i pass the write way of Flow please give formats of Cash Flow & Fund Flow as soon as possible plz.

Hallo every body i suggest you to go following link. (Cash flow statement - Wikipedia, the free encyclopedia) at http://en.wikipedia.org/wiki/Cash_flow_statement Nilesh Sheth

nirmalkumar - Contributing Member
Hi,

Nirmal here i can send you very good notes regarding Finance

Same way can i have notes not the Information regarding i would like to have the notes hints regarding SAP FICO

Looking forward

Regards
Nirmal

CASH FLOW

CASH FLow is the summary statement shows
-money receipts and payment by the organization
-difference of total receipts is greter than the total payments means cash flow of the organisation is profitable.:-P
-difference of total receipts is less than the total payments means cash flow of the organisation is going to downwards.:(

===================================
FUNDS FLOW

THE FUNDS FLOW STATEMENT SHOWS HOW THE SOURCES OF FUNDS
EQUAL THE USES OF FUNDS DURING THE PERIOD COVERED BY THE STATEMENT MEANS IN A STIPULATED PERIOD FUNDS COLLECTED FROM SALES OF GOODS/STOCK/DEBT Etc. ARE RELATED TO THEIR USE FOR
-PURCHASE OF FIXED ASSETS, PAYMENT OF DEBTS,DISTRIBUTION OF FUNDS,OTHER PURCHASES

SANDI

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