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Cash flow. The receipts and payments can be gathered either from records of accounts or by adjusting the cost of sales, sales and other elements in the income statement. But on the other side in case of indirect method, profit and loss is adjusted on elements which are related to financing and investing activities and effects of noncash transactions like changes in receivables, payables, inventory, provisions, depreciation, amortisation, gains and losses in foreign currency and differed tax liabilities are also adjusted for the items (Thornton, 2012, p. The net cash flow from operating activities of FedEx in the year 2011 is $4041 million and in 2012 it is $4835 million. Thus the cash flow from operating has been increased over the years.

It has increased due to increment in net income and earnings from other operating activities.The net cash flow from operating activities of DHL for the year 2012 is -203 million euro and in 2011 it was 2371 million euro. There is a significant decrease in the operating cash flow due to negative earnings from operating activities and increment in depreciation amount.Working capital of DHL is negative for both the years 2011 and 2012. In 2011, working capital is -1439 million euro and in 2012 it is -336 million euro. It indicates that the company has no cash for its day to day activities.Cash flow from financing activities of DHL is 1199 million euro in the year 2012 and it is negative in the year 2011. Thus it indicates that the cash flow from financing activities has improved in 2012. Thus it can be said that DHL will face lower risk in its long-term funding policy because in recent year it has positive cash flow from financing activity as compared to the company FedEx. Cash flow from investing activities of FedEx in 2011 -$3419 million and in 2012 it is -$4049 million. Cash flow from investing activities of DHL in 2011 is -1697 million euro and in 2012 it is -1129 million euro. Although the cash flow for both the company is negative in recent year the company DHL has a more prudent investment policy than FEDEX as it has less negative cash flow from investment activities than FEDEX. Cash flow.

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