sources and uses of funds statement

(redirected from funds-flow statement)

Cash Flow Statement

A statement every publicly-traded company must file with the SEC each quarter indicating all cash inflows and cash outflows from all sources, whether they are business activities or the company's investments. This is considered one indication among many of a company's financial health. A business activity may be reported as income if a company has agreed to a contract, even if no money has actually changed hands; a cash flow statement seeks to avoid this by showing how much cash the company has on hand. It is also called an application of funds statement.

sources and uses of funds statement

sources and uses of funds statement

or

funds-flow statement

an accounting statement that shows the sources from which a firm derives its cash and the use to which this cash is put during a trading period. The major source of funds is usually the net cash generated from sales, though this can be added to by cash raised from selling FIXED ASSETS and by raising further LOANS or new SHARE ISSUES. The major applications of funds are the purchase of new FIXED ASSETS, repayment of LOANS and payments of TAXES and DIVIDENDS. When further allowance is made for the cashflow effect of changes in STOCKS, DEBTORS and CREDITORS, the sources and uses of funds statement shows the net inflow or outflow of cash to the firm. See CASH FLOW STATEMENTS.