Purchase Solution

Funds Flow and Ratio Analysis

Not what you're looking for?

Ask Custom Question

I am struggling with this question can you describe the primary difference between "funds flows" analysis and ratio analysis. Which analysis technique is preferred and why?

Purchase this Solution
Solution Summary

This solution of 338 words explains the differences between funds flow analysis and ratio analysis. It also discusses which analysis technique is preferred and why.

Solution Preview

Fund flow analysis is the analysis of the funds flow of the organization. Fund flow analysis deals with the changes in working capital position of the company between the two different periods. Fund flow describes the changes in current assets and current liabilities of the organization. It reveals important changes in the utilization and disposition of resources. It is a statement of changes in the financial position.
Ratio analysis is the analysis of financial position of the company in terms of liquidity, ...

Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

View More Free Quizzes
Related BrainMass Solutions

  • Financial planning is an important part of business planning

    One way that financial ratio analysis is projected financial statements is described.

  • Cash flow, financial statements, ratio analysis

    406660 Cash flow, financial statements, ratio analysis and time value of money Given your understanding of cash flow, financial statements, ratio analysis and time value of money, provide an in depth example of why the integration of these concepts would

  • Annual report to assess the risk management strategy

    risk management purpose: Ratio Analysis Fund Flow statement Cash Flow statement Comparative Financial Statement Common size Financial statement Trend Analysis // After listing down the components and tools of financial statements, we

  • Risk level and valuation of CVS

    (CVS Cash Flow Statement) Analyze each of the 3 major sections of the statement . What are the key sources and uses of funds overall for the most recent year for each section. Is cash flow positive or negative for each section and overall?

  • Accounting framework

    The financial statements are inclusive of a balance sheet, Income statement, and cash flow. Where, the balance sheet states the list of assets, liabilities and the sources of funds as of the specified period.

  • Financial Analysis: Ratio Analysis

    preferences dividend and shareholder's funds.

  • Identify which financial statement would help answer questio

    You need the cash flow statement for this -- see operating cash flow! Does the firm generate enough internal funds to support investment, or does new stock need to be issued? Internal funds = operating cash flow.

  • Business Analysis

    Her job is likely to include all of the following activities except: a. preparing a cash flow analysis b. preparing financial statements c. acquiring funds for the firm d. planning for the expenditure of funds 6.

  • memo to your superior analyzing the performance of SAC

    Ø Fund Flow Analysis: Fund flow analysis is a vital tool that analyzes the financial position of the business; as this statement highlights the changes taking place in the working capital.

View More Related Solutions