Excel Skills | Cash Flow Statement Template

Instructions
www.excel-skills.com

This template enables users to automatically compile a complete cash flow statement by simply entering basic income
statement and balance sheet information. The template includes a current and comparative financial period and detailed On
Onthis
thissheet:
sheet:
instructions on the calculation of the line items that are included on the cash flow statement. The template includes This
This sheet
sheet includes
includes detailed
detailed instructions
instructions
statements of cash flow that have been compiled based on both the direct and indirect methods. on
on setting
setting up
up and
and using
using this
this template.
template.

The following sheets are included in this template:

Info - this sheet includes all the input cells that are used in compiling the cash flow statement. User input consists of an
income statement and a balance sheet as well as some additional information that is required in order to produce a cash flow
statement.
Direct - this sheet includes a complete cash flow statement based on the direct method that is automatically calculated from
the information that is entered on the Info sheet. No user input is required on this sheet.
Indirect - this sheet includes a complete cash flow statement based on the indirect method that is automatically calculated
from the information that is entered on the Info sheet. No user input is required on this sheet.

User Input
GET
GETFULL
FULL VERSION
VERSION TO
TO
All the cells on the Info sheet that require user input are indicated by a yellow or green cell background in the column to the UNLOCK!
UNLOCK!
right of the appropriate input cell. The cells that are indicated in yellow require positive values to be entered, while the cells
that are indicated in green require negative values to be entered. Cells that don't have a yellow or green colour next to them
contain formulas and should be left unchanged.

If you are concerned about replacing the formulas in the cells that do not require user input, we recommend that you protect
the sheet with a user defined password. Only valid input cells will then be available for user input. The Protect Sheet feature
can be accessed by selecting the main Tools menu, selecting Protection and selecting the Protect Sheet option. You will then
be required to enter and to confirm a user defined password (all input cells have already been unlocked in order to allow user
input).

The default reporting periods can be amended by simply entering a new year in cell B3. All the other cells in this template
that contain references to the reporting periods will automatically be amended.

The additional information section requires users to specify whether any business acquisitions, disposals of property, plant
and equipment or raising of long term finance occurred during the current and previous financial periods. The default input
values in these cells can be replaced by nil values if they are not applicable.

You'll also notice that three years' balance sheet information is required in order to produce a cash flow statement with
accurate comparative data.

The balance sheet control total in row 48 has been added to the sheet in order to highlight an imbalance on the balance
sheet after entering the required balance sheet information. If an imbalance is encountered, the appropriate cells in this row
will be highlighted in orange.

Similarly, the depreciation control total in row 49 will indicate if the sum of the depreciation that is specified in the income
statement section and the accumulated depreciation that is specified in the Disposal of Property, Plant & Equipment section
does not agree to the movement in the accumulated depreciation balance on the balance sheet. Any imbalance that is
encountered will also be highlighted in orange.

Cash Flow Statement Calculation

This section of the instructions provides more information on the calculations that are performed for each line item that is
included in the cash flow statements. Note that both cash flow statements are calculated automatically and no user input is
therefore required on either the Direct or Indirect sheets.

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Excel Skills | Cash Flow Statement Template
Instructions
www.excel-skills.com

Cash receipts from customers

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sheet:
This
This sheet
sheet includes
includes detailed
detailed instructions
instructions
This amount is calculated by adding the appropriate turnover amount to the opening accounts receivable balance and the on
accounts receivable balance that forms part of business acquisitions for the particular period. The closing accounts on setting
setting up
up and
and using
using this
this template.
template.
receivable balance is then deducted from this total in order to calculate the amount of cash that has been received from
customers.

Cash paid to suppliers and employees

This amount is determined by calculating the cash generated from operations and deducting the cash receipts from
customers from this amount. The calculation of cash generated from operations is discussed in the next section.

An alternative calculation of the cash paid to suppliers and employees is as follows:

Profit before taxation
Less: Turnover
Add: Depreciation
Add: Interest expense
Less: Investment income
Add: Other non-cash items that are included in expenditure (for example: loss on disposal of equipment)
Add: Inventory opening balance
Less: Inventory closing balance
Add: Trade payables closing balance
Less: Trade payables opening balance

As you can see, this calculation is quite complicated and we therefore recommend calculating the cash generated from
operations and then simply deducting the cash receipts from customers from this amount.

Cash generated from operations

A detailed calculation of this amount is included below the cash flow statement on the Direct sheet and at the top of the cash
flow statement on the Indirect sheet. The calculation starts with the profit before taxation and all non-cash income &
expenses and items that are included in other line items on the cash flow statement are then added back.

Investment income and interest expenses are added back because these items are included separately on the cash flow
statement. The depreciation and profit or loss from sale of property, plant & equipment amounts are non-cash items and are
therefore also added back.

The net effect of all working capital balances are then deducted in the calculation because these items also form part of
operating cash flow. Note that an increase in accounts receivable and inventory results of an outflow of cash and should
therefore be deducted. An increase in trade payables, however, results in an inflow of cash (because less payments are
made to trade creditors) and should therefore be added in the calculation. A decrease in trade payables is therefore an
outflow of cash and should be deducted.

Interest, Income tax and Dividends

These amounts are all calculated by adding the appropriate income statement amounts to the opening balance of the
appropriate provisions (liabilities) and deducting the closing balance of the appropriate provisions from this calculation. All
three amounts are negative because all three items result in an outflow of cash.

Business Acquisitions

This amount should be the total amount that was paid in order to acquire a new or existing business net of the cash amount
that was received from the business that was acquired.

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Excel Skills | Cash Flow Statement Template
Instructions
www.excel-skills.com

Also note that the amounts that are included in each individual asset class should be added to the appropriate opening
On
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sheet:
balance of the asset class in determining the increase or decrease in the balance of each asset class. For example, in
determining the increase in inventory, the inventory amount that forms part of the business acquisition section is added to the This
This sheet
sheet includes
includes detailed
detailed instructions
instructions
opening inventory balance on the balance sheet before deducting the closing inventory balance in order to determine the on
on setting
setting up
up and
and using
using this
this template.
template.
movement in inventory between the two financial years that are under review.

Purchase of property, plant and equipment

The amount of cash purchases of property plant & equipment is determined as follows:
Property, plant & equipment - closing balance at cost
Less: Property, plant & equipment - opening balance at cost
Less: Property, plant & equipment - acquired through business acquisitions
Add: Cost of assets that were sold during the period under review
Less: Acquisitions financed through financial leases

Note that the calculated amount is a cash outflow and should be included on the cash flow statement as a negative amount
and that financial leases do not result in an immediate outflow of cash and should therefore be excluded from this line item.
Payments of financial leases should be included under the financing activities section of the cash flow statement.

Also note that revaluations of property, plant and equipment should also be excluded from the cash flow statement by
deducting the movement in the revaluation reserve in the above calculation.

Proceeds from sale of equipment

This amount is the cash amount that is received after the sale of equipment and is included in the Additional information
section on the Info sheet.

Acquisition of portfolio investments

This amount is calculated by deducting the closing portfolio investment balance from the opening portfolio investment
balance.

Investment income

This amount is included in this section of the cash flow statement because it does not form part of operating cash flows. Note
that investment income is deducted in the cash generated from operations calculation because it is included in the profit
before tax and it is included as a separate line item on the cash flow statement.

Proceeds from issue of share capital

This amount is calculated by deducting the opening share capital balance from the closing share capital balance. An
increase in share capital results in an inflow of cash.

Proceeds from long-term borrowings

This amount is specified in the Additional information section on the Info sheet and should include all the long term debt that
was raised during the period under review, but should exclude all the finance leases that are deducted from the property,
plant & equipment cash acquisitions total.

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Excel Skills | Cash Flow Statement Template
Instructions
www.excel-skills.com

Payment of long-term borrowings

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This amount is calculated as follows: This
This sheet
sheet includes
includes detailed
detailed instructions
instructions
on
on setting
setting up
up and
and using
using this
this template.
template.
Long term debt closing balance
Less: Long term debt opening balance
Less: Long term debt included in business acquisitions
Less: Long term debt raised
Less: Finance lease acquisitions

The calculation should be included on the cash flow statement as a negative amount because the payment of long term debt
results in an outflow of cash. The finance lease acquisitions should be excluded because this amount is set off against the
property, plant & equipment acquisitions and the long term debt raised is deducted because it is included in a separate line
item on the cash flow statement.

Cash Flow Statement Control Total

The cash balance control total in row 32 on the Direct sheet and row 40 on the Indirect sheet has been included in order to
highlight an imbalance between the closing cash balance on the balance sheet and the closing cash balance on the cash
flow statement. If an imbalance is encountered on one of these sheets, the appropriate cells in this row will be highlighted in
orange.

Help & Customization

If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility in
mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation of
your requirements.

© Copyright

This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws. Any
publication or distribution of this template outside the scope of the permitted use of the template is expressly prohibited. In
terms of the permitted use of this template, only the distribution of the template to persons within the same organisation as
the registered user or persons outside the organisation who can reasonably be expected to require access to the template
as a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the template by
parties outside of the organisation is however expressly prohibited and represents an infringement of international copyright
laws.

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Cash Flow Statement Data
Current Reporting Period 2018
© www.excel-skills.com
Income Statement 2018 2017
On
Onthis
thissheet:
sheet:
All
All the
the financial
financial information
information that
that isis required
required in in order
order to
to produce
produce aa
Turnover 31,650.00 26,520.00 complete
complete cash cash flow
flow statement
statement needs
needs to to be
be entered
entered onon this
this sheet.
sheet.
Cost of sales (26,000.00) (24,280.00) Input
Input cells
cells are
are indicated
indicated by
by aa yellow
yellow (positive
(positive values)
values) or
or green
green
Gross profit 5,650.00 2,240.00 (negative
(negative values)
values) square
square next
next to
to the
the cell.
cell. All
All the
the other
other cells
cells contain
contain
formulas.
formulas.
Depreciation (450.00) (260.00)
Administrative and selling expenses (950.00) (800.00)
Interest expense (400.00) (300.00)
Investment income 500.00 350.00
Profit before taxation 4,350.00 1,230.00
Taxes on income (300.00) (145.00)
Profit 4,050.00 1,085.00
Dividends paid (1,200.00) (200.00)
Retained Earnings 2,850.00 885.00

Balance Sheet 2018 2017 2016

Assets
Cash and cash equivalents 1,230.00 160.00 320.00
Accounts receivable 1,800.00 1,200.00 695.00
Interest receivable 100.00 - -
Inventory 2,200.00 1,650.00 900.00
Portfolio investments 2,500.00 2,500.00 2,000.00
Property, plant and equipment at cost 3,730.00 1,910.00 1,500.00
Accumulated depreciation (1,450.00) (1,060.00) (800.00)
Property, plant and equipment net 2,280.00 850.00 700.00
Total assets 10,110.00 6,360.00 4,615.00

Liabilities
Trade payables 250.00 1,890.00 1,690.00
Interest payable 230.00 100.00 80.00
Income taxes payable 400.00 400.00 300.00
Dividends payable 1,200.00 200.00 -
Long term debt 2,300.00 1,140.00 800.00
Total liabilities 4,380.00 3,730.00 2,870.00

Shareholders’ equity
Share capital 1,500.00 1,250.00 1,250.00
Retained earnings 4,230.00 1,380.00 495.00
Total shareholders’ equity 5,730.00 2,630.00 1,745.00

Total liabilities and shareholders’ equity 10,110.00 6,360.00 4,615.00

Balance Sheet Control Total - - -

Depreciation Control Total - -

Additional Information 2018 2017

Business Acquisitions Values

Inventories 100.00 -
Accounts receivable 100.00 -
Cash 40.00 -
Property, plant and equipment 650.00 -
Trade payables (100.00) -
Long-term debt (200.00) -
590.00 -

Disposal of Property, Plant & Equipment

Cost 80.00 -
Accumulated Depreciation (60.00) -
Book value 20.00 -

Proceeds 70.00 -

Profit / (Loss) on sale of equipment 50.00 -

Long Term Debt

Loans raised 250.00 200.00
Finance lease acquisitions 900.00 210.00
1,150.00 410.00

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Statement of Cash Flows
© www.excel-skills.com 2018 2017
Cash flows from operating activities
Profit before taxation 4,350.00 1,230.00
On
Onthis
thissheet:
sheet:
Adjustments for: The
The cash
cash flow
flow statement
statement on on this
this sheet
sheet is
is compiled
compiled based
based on
on
Depreciation 450.00 260.00 the
the indirect
indirect method
method and
and produced
produced automatically
automatically from
from the
the
Investment income (500.00) (350.00) financial
financial information
information that
that isis entered
entered on
on the
the Info
Info sheet.
sheet. No
No
user
user input
input is
is required
required on
on this
this sheet.
sheet.
Interest expense 400.00 300.00
Profit / (Loss) on the sale of property, plant & equipment (50.00) -
Working capital changes:
(Increase) / Decrease in trade and other receivables (500.00) (505.00)
(Increase) / (Decrease) in inventories (450.00) (750.00)
Increase / (Decrease) in trade payables (1,740.00) 200.00
Cash generated from operations 1,960.00 385.00
Interest paid (270.00) (280.00)
Income taxes paid (300.00) (45.00)
Dividends paid (200.00) -
Net cash from operating activities 1,190.00 60.00

Cash flows from investing activities

Business acquisitions, net of cash acquired (550.00) -
Purchase of property, plant and equipment (350.00) (200.00)
Proceeds from sale of equipment 70.00 -
Acquisition of portfolio investments - (500.00)
Investment income 400.00 350.00
Net cash used in investing activities (430.00) (350.00)

Cash flows from financing activities

Proceeds from issue of share capital 250.00 -
Proceeds from long-term borrowings 250.00 200.00
Payment of long-term borrowings (190.00) (70.00)
Net cash used in financing activities 310.00 130.00

Net increase in cash and cash equivalents 1,070.00 (160.00)

Cash and cash equivalents at beginning of period 160.00 320.00

Cash and cash equivalents at end of period 1,230.00 160.00

Cash Balance Control Total - -

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