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Is an increase in cash a source or use of funds?

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Question ajoutée par Sara Naeem , Trainee Finance officer , Wah Brass Mill
Date de publication: 2014/10/10
FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

I think that the increase in the cash source 

An opportunity to re-invest in and increase revenues 

With increased cash flow can recycle capital during the financial period 

But it is not meant source of funding because the activist is based on fixed capital efficiently exploits

Malik Khalid Mahmood
par Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

Increase in cash a part of Cash Flow Statement IAS7 is sources of funds

Ahmed Abd Alwahab Awad Ibrahim
par Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

Right answer increasing Cash is a source of   fund

Khaled Abdelrehim ACCA DipIFR CMA
par Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

The increase in cash is a source of fund.

Tanveer Qureshi
par Tanveer Qureshi , Director , Qureshi Associates

It is source.

James Perez, CPA, CMA Candidate
par James Perez, CPA, CMA Candidate , Assistant Manager-Financial Planning and Analysis , Tupperware Brands Philippines

Definitely, a source.

Divyesh Patel
par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Thank you for your invitation.

Its use of funds.

Utilisateur supprimé
par Utilisateur supprimé

Increase in cash = a source = positive cash-flow

Ali Hussain Yousuf
par Ali Hussain Yousuf , Assistant Manager Internal Audit , Index Exchange LLC

Source of Funds

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Cash Flow from Operations (CFO) = Net Income (NI) + Depreciation and Amortizations + Other Non-Cash Items (NCI) – Change in Working Capital (ΔWC) 

The last item, change in Working Capital is subtracted because an increase in working capital is a use of funds as opposed to being a source of funds.  The definition of Working Capital in the cash flow statement excludes financing related activities such as short-term debt or the current portion of long term debt.   The Change in Working Capital calculation also eliminates cash and cash equivalents because we are attempting to explain how cash changes over time

Utilisateur supprimé
par Utilisateur supprimé

The increase in Cash is a result of the use of these funds

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