Answer Posted / rajesh jain

Cash flow statement shows the actual cash flow of a
company. This summarrise the data of cash or cash related
activities only.

funds flow statements shows that where the funds have been
generated & where they have been utilised. thus funds means
current assets & currents liabilities of a company.If
current assets are more that current liabilities that
working capital of a company willbe increased & if current
liabilities are more that current Assets it will be
decrease.thus fund flow shows the reason of change in
working capital.

this is a statement of sources & uses of application of
funds.the sources are funds from operation,sale of fixed
assets,issue of share capital & debenture,non operating
receipts. Uses are purchase of fixed assets,redemption of
prefence shares & Debentures,Loss on sale of fixed
assets,loss from operations etc.

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