18.4 CASH-FLOW STATEMENT
A cash-flow statement is to a large extent similar to a funds-flow statement. The only difference is that a cash-flow statement shows the position of the cash balance in a firm (including cash at bank), whereas the funds-flow statement indicates the changes in the working capital as a whole. Cash is only a part of working capital, and so any change in the working capital does not necessarily indicate a changes in the cash balance. It is possible for there to be an increase in working capital, with the cash position either deteriorating, or not satisfactory from the viewpoint of liquidity. If, for example, sales have been larger but bills stand uncollected, the working capital would be larger without any increase in cash. ...
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