A company’s cash flow and fund flow statements reflect two different variables during a specific period. The funds flow statement takes both cash and non-cash items for accounting. A funds flow statement is useful to study the funds exactly available for working capital from long-term sources. It also enables the assessment of an entity’s ability…
In accounting there are generally four different kinds of financial statements namely the balance sheet, the income statement, the cash flow statement, and the fund flow statement. Here, we delve into the last two. The Cash flow statement represents the actual inflow, and outflow of cash, and the increased or decreased position of cash and…
Profitability ratios help a business entity as well as the lenders/investors to evaluate the ability to generate income as compared to its expenses and other cost associated with generation of income during a particular period. Profitability Ratios also help the managements in making business decision in respect of expansion or diversification of the business. As…