BMSH2003

Statement of Cash Flows in MS Excel

Statement of Cash Flows
Objectives:
At the end of the exercise, the students will be able to:
• Create a statement of cash flows using MS Excel.

Equipment:
• Computer installed w/ MS Excel

Basic Principle/s:
• Cash Inflow is the lifeblood of the business. Itcomes from sources like payments from customers,
receipt of a loan, monetary infusion from an investor, or interest on savings or investments.
• Positive cash flow means the business is running smoothly. High positive cash flow is even better
and will allow new investments (hire employees, open another location) and further grow the
business (Kashoo Cloud Accounting Inc., 2017).

Procedures:
1. Create a new sheet and rename it as “SCF”.
2. Determine the heading:
a. Select cells A1-B1, merge, and type ‘Chan Accounting Firm’.
b. Select cells A2-B2, merge, and type ‘Statement of Cash Flows’.
c. Select and merge cells A3-B3 for the date.
3. Analyze the cash transactions:

Debits Amount Nature Classification Reason

Dec. 1 P1,000,000 Cash investment of owner Financing Affects equity
Dec. 1 200,000 Proceeds from bank loan Financing Affects non-current liability
Dec. 8 75,000 Collection from Customers Operating Affects net income
Dec. 15 270,000 Collection from Customers Operating Affects net income
Dec. 22 70,000 Collection from Customers Operating Affects net income

Credits Amount Nature Classification Reason

Dec. 1 P20,000 Payment of business permits Operating Affects net income
Dec. 1 150,000 Payment of annual rent Operating Affects net income
Dec. 2 30,000 Purchase of office supplies Operating Affects net income
Dec. 8 60,000 Purchase of equipment Investing Affects non-current assets
Dec. 17 100,000 Cash withdrawal of owner Financing Affects equity
Dec. 31 46,000 Payment of salaries Operating Affects net income

4. Prepare the Operating Activities Section.

a. Select and merge A5-B5 and type ‘CASH FROM OPERATING ACTIVITIES’.
b. In cell A6, type ‘Cash received from customers’.
c. In cell A7, type ‘Cash paid for wages and other operating expenses’.
d. In cell A8, type ‘Cash paid to suppliers’.
e. In cell A9, type ‘Net cash provided by (used in) operating activities’.
f. Compute the amount based on the analyzed data above.

CASH FROM OPERATING ACTIVITIES

Cash received from customers ₱ -
Cash paid for wages and other operating expenses -
Cash paid to suppliers -
Net cash provided by operating activities ₱ -

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 BMSH2003

5. Prepare the Investing Activities Section.

a. Select and merge A10-B10. Type ‘CASH FROM INVESTING ACTIVITIES’.
b. In cell A11, type ‘Purchase of property, plant, and equipment’.
c. In cell A12, type ‘Net cash provided by (used in) investing activities’.
d. Look for the amount on the above data.

CASH FROM INVESTING ACTIVITIES

Purchase of property, plant, and equipment ₱ -
Net cash used in investing activities ₱ -

6. Prepare the Financing Activities Section.

a. Select and merge A13-B13. Type ‘CASH FROM FINANCING ACTIVITIES’.
b. In cell A14, type ‘Proceeds from cash investment of owner’.
c. In cell A15, type ‘Cash received from bank loan’.
d. In cell A16, type ‘Cash withdrawn by C. Chan’.
e. In cell A17, type ‘Net cash provided by (used in) financing activities’.

CASH FROM FINANCING ACTIVITIES

Proceeds from cash investment of owners ₱ -
Cash received from bank loan -
Cash withdrawn by C. Chan -
Net Cash provided by financing activities ₱ -

7. Determine the ending cash balance.

a. In cell A18, type ‘NET CHANGE IN CASH - Increase’.
b. In cell A19, type ‘ADD: Cash Balance - Beginning’.
c. In cell A20, type ‘Cash Balance - Ending’. Compute the amount.

NET CHANGE IN CASH - Increase ₱ -

ADD: Cash Balance - Beginning -
Cash Balance - Ending ₱ -

8. Afterwards, design your own statement of cash flows as desired.

9. Create an SCF button on the Home Sheet, and create a hyperlink to SCF sheet.
10. Save the file.

Rubric for scoring:

CRITERIA PERFORMANCE INDICATORS POINTS
Neatness and The spreadsheet has exceptional formatting, and the information is well-
20
Organization organized.
The spreadsheet formulas are well-developed and will correctly determine the
Formulas 30
needed information.
Titles, Labels, and
The spreadsheet contains clearly labeled rows and columns. 10
Headings
The spreadsheet meets all the necessary requirements to interpret the result of
Content 40
the operation.
TOTAL 100

References:
Kashoo Cloud Accounting Inc. (2017). What is Cash Flow and Why is it so Important? Retrieved from
Kashoo: https://www.kashoo.com/blog/what-is-cash-flow-and-why-is-it-so-important

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