1. CASH FLOW
AND
FUND FLOW
PRESENTED BY:-
ARHAAM ANSARI
ROLL NO:-9

2. 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.

3. 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.

5. Particular
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 debenture
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
Add:-Provision for taxation
Less:-Tax paid
Net cash from operating activities:-
Amount

6. Particular
2.Cash flow from investing activity
sale of assets ……………………..
purchase of assets (…………………..)
dividend received ……………………
Net cash used in investing activity
3.Cash flow from financing activity
Issue of shares …………………….
Redemption of shares (…………………...)
Loan from bank ……………………
Net cash used in financing activity
Amount
…………….
……………..

7. 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.

8. 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.

9. 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.

10. STEPS INVOLVE IN THE
PREPRATION OF FUND FLOW
STATEMENT

14. 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.

15. 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.