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CASH FLOW STATEMENT TEMPLATE
This template enables users to automatically compile a complete cash flow statement by simply entering basic income state
information. The template includes a current and comparative financial period and detailed instructions on the calculation o
included on the cash flow statement. The template includes statements of cash flow that have been compiled based on bot
methods.
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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 incom
statement and balance sheet information. The template includes a current and comparative financial period and detaile
instructions on the calculation of the line items which are included on the cash flow statement. The template include
statements of cash flow that have been compiled based on both the direct and indirect methods.
The following
Input sheets
- this sheet are included
includes all the in this cells
input template:
used in compiling the cash flow statement. User input consists of an incom
statement and a balance sheet section as well as some additional information which is required in order to produce a cas
flow statement.
Direct - this sheet contains a cash flow statement based on the direct method which is automatically calculated from th
information entered on the Input sheet. No user input is required on this sheet.
Indirect - this sheet contains a cash flow statement based on the indirect method which is automatically calculated from
the information entered on the Input sheet. No user input is required on this sheet.
User Input
All the cells on the Input sheet which require user input are indicated by a yellow or green cell background in the column t
the right of the appropriate input cell. The cells which are indicated in yellow require positive values to be entered, while the
cells which are indicated in green require negative values to be entered. Cells that don't have a yellow or green colour nex
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, you can protect the sheet with
a user defined password. Only valid input cells will then be available for user input. The Protect Sheet feature can b
accessed by selecting the Review tab on the ribbon and selecting the Protect Sheet option from the Changes section of the
ribbon. You will be required to enter and to confirm a user defined password (all input cells have already been unlocked i
order to allow user input).
The default reporting periods can be amended by simply entering a new year in cell B2. All the other cells in this templat
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, plan
and equipment or intangibles and 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 wit
accurate comparative data.
The Input sheet also contains 4 control totals in rows 56 to 59 which should all be nil otherwise the cash flow statement
will not balance. Each of these control totals are covered in more detail in the Control Totals sub section of thes
instructions which follows next.
Control Totals
The balance sheet control total in row 56 has been added to the sheet to highlight an imbalance on the balance sheet afte
entering the required balance sheet information. If an imbalance is encountered, the cells in this row will be highlighted in
orange and it simply means that your balance sheet does not balance which will also result in your cash flow statement
not balancing.
The depreciation control total in row 57 highlights an inconsistency between the depreciation charges in the incom
statement and the accumulated depreciation charges in the balance sheet (with disposals being taken into account). Th
income statement charges are added back in the cash flow statement which means that if these charges are not consisten
with the balance sheet movement in accumulated depreciation, the cash flow statement may not balance as a result of thi
inconsistency.
Page 3 of 10
Excel Skills | Cash Flow Statement Template
Instructions
www.excel-skills.com
The amortization control total in row 58 basically functions in the same way as the depreciation control total but is applie
to amortization and accumulated amortization on intangibles instead of depreciation on property, plant and equipment. Th
same principle applies - the income statement charges are added back on the cash flow statement and if these charge
are not consistent with the movement in accumulated amortization, the cash flow statements may not balance.
The retained earnings control total in row 59 tests whether the balance sheet movement in the retained earnings line i
consistent with the profit or loss for the period. If it is not, it indicates that other adjustments (like for example a prior yea
adjustment) have been made directly against retained earnings instead of being included in the income statement. If suc
adjustments have been made, the adjustments need to be included in the adjustment section of the cash flow statement
on the Direct and Indirect sheets.
This section of the instructions provides more information on the calculations which are performed for each line item on th
cash flow statements. Note that both cash flow statements are calculated automatically and no user input is therefor
required on either the Direct or Indirect sheets.
This amount is determined by calculating the cash generated from operations and deducting it from the cash receipts from
customers. The calculation of cash generated from operations is discussed in the next section.
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.
Page 4 of 10
Excel Skills | Cash Flow Statement Template
Instructions
www.excel-skills.com
Investment income and interest expenses are added back because these items are included separately on the cash flow
statement. The depreciation, amortization, profit or loss from sale of property, plant & equipment and profit or loss from th
sale of intangibles are non-cash items and are also added back. Balance sheet movements in reserves are also non-cas
items and also added back.
The net effect of all working capital balances is then deducted in the calculation because these items also form part o
operating cash flow. Note that an increase in accounts receivable and inventory results of an outflow of cash and shoul
therefore be deducted. An increase in payables, however, results in an inflow of cash (because less payments are made t
creditors) and should therefore be added in the calculation. A decrease in payables is therefore an outflow of cash an
should be deducted.
Note: The receivables and payables lines include multiple balance sheet items which have been consolidated into a singl
line for cash flow statement purposes. Trade receivables, loans & advances and other receivables are grouped together i
the receivables lines and trade payables, sales tax, payroll accruals and other accruals are grouped together in th
payables lines on the cash flow statements.
These amounts are all calculated by adding the appropriate income statement amounts to the opening balance of th
appropriate provisions (liabilities) and deducting the closing balance of the appropriate provisions from this calculation. A
three amounts are negative because all three items result in an outflow of cash.
Business Acquisitions
This amount should be the total amount which was paid in order to acquire a new or existing business net of the cas
amount received from the business acquired.
Also note that the amounts that are included in each individual asset class should be added to the appropriate opening
balance of the asset class in determining the increase or decrease in the balance of each asset class. For example, i
determining the increase in inventory, the inventory amount which forms part of the business acquisition section is adde
to the opening inventory balance on the balance sheet before deducting the closing inventory balance in order t
determine the movement in inventory between the two financial years under review.
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 which 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 amoun
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 b
deducting the movement in the revaluation reserve in the above calculation.
Page 5 of 10
Excel Skills | Cash Flow Statement Template
Instructions
www.excel-skills.com
These amounts are calculated in much the same way as the property, plant and equipment amounts but are based o
intangible assets instead. Finance leases also play no role in the calculation of intangible amounts because these ar
unique to property, plant & equipment.
These amounts are the cash amounts which are received after the sale of equipment or intangible assets and are include
in the Additional information section on the Input sheet.
Acquisition of investments
This amount is calculated by deducting the closing investment balance from the opening investment balance and deductin
any amounts received through business acquisitions.
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 th
profit before tax and it is included as a separate line item on the cash flow statement.
This amount is calculated by deducting the opening share capital balance from the closing share capital balance. A
increase in share capital results in an inflow of cash.
This amount is specified in the Additional information section on the Input sheet and should include all the long term deb
which was raised during the period under review, but should exclude all the finance leases that are deducted from th
property, plant & equipment cash acquisitions total.
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 agains
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.
Page 6 of 10
Excel Skills | Cash Flow Statement Template
Instructions
www.excel-skills.com
The cash balance control total in row 34 on the Direct sheet and row 45 on the Indirect sheet has been included in order t
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 highlighte
in orange.
If you experience any difficulty while using this template and you are not able to find the appropriate guidance in thes
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibilit
in mind to ensure that it can be used in most business environments. If however you need an Excel based template that i
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanatio
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 expressl
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 acces
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 o
international copyright laws.
Page 7 of 10
Cash Flow Statement Data
Current Reporting Period 2020
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Income Statement 2020 2019
Turnover 316,500.00 265,200.00
Cost of sales (260,000.00) (242,800.00)
On this sheet:
Gross profit 56,500.00 22,400.00
All the financial information required to produce a complete cash flow
Depreciation (4,700.00) (2,500.00)
statement needs to be entered on this sheet. Input cells are indicated by a
Amortization (1,000.00) (1,000.00)
yellow (positive values) or green (negative values) square next to the cell.
Administrative and selling expenses (9,500.00) (8,000.00) All other cells contain formulas.
Interest expense (4,000.00) (3,000.00)
Investment income 5,000.00 3,500.00
Profit before taxation 42,300.00 11,400.00
Taxes on income (12,000.00) (4,000.00)
Profit 30,300.00 7,400.00
Dividends paid (7,575.00) (1,850.00)
Retained Earnings 22,725.00 5,550.00
Assets
Non-current assets
Property, plant and equipment 25,800.00 11,500.00 7,000.00
Property, plant and equipment at cost 37,300.00 19,000.00 15,000.00
Accumulated depreciation (11,500.00) (7,500.00) (8,000.00)
Intangible assets 8,000.00 9,000.00 -
Intangible assets at cost 10,000.00 10,000.00 -
Accumulated amortization (2,000.00) (1,000.00) -
Investments 25,000.00 15,000.00 13,500.00
Current assets
Inventory 22,000.00 15,500.00 12,000.00
Trade receivables 18,000.00 9,000.00 6,950.00
Loans & advances 1,200.00 800.00 500.00
Other receivables 1,800.00 1,000.00 500.00
Interest receivable 1,000.00 800.00 -
Cash and cash equivalents 11,500.00 1,600.00 3,200.00
Total assets 114,300.00 64,200.00 43,650.00
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Statement of Cash Flows
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Cash flows from operating activities
Cash receipts from customers 309,000.00 263,150.00
Cash paid to suppliers and employees (269,500.00) (249,625.00) On this sheet:
Cash generated from operations 39,500.00 13,525.00 This direct method cash flow statement is calculated automatically from the
Interest paid (2,800.00) (2,800.00) financial information entered on the Input sheet. No user input is required
Income taxes paid (4,000.00) (3,000.00) on this sheet.
Dividends paid (1,850.00) (1,500.00)
Net cash from operating activities 30,850.00 6,225.00
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Statement of Cash Flows
© www.excel-skills.com 2020 2019
Cash flows from operating activities
Profit / (Loss) before taxation 42,300.00 11,400.00
Adjustments for:
Depreciation 4,700.00 2,500.00 On this sheet:
Amortization 1,000.00 1,000.00 This indirect method cash flow statement is calculated automatically from the
Investment income (5,000.00) (3,500.00) financial information entered on the Input sheet. No user input is required on
Interest expense 4,000.00 3,000.00 this sheet.
Profit / (Loss) on the sale of property, plant & equipment 300.00 (400.00)
Profit / (Loss) on the sale of intangible assets - -
Movement in reserves - -
Working capital changes:
(Increase) / Decrease in trade and other receivables (8,700.00) (2,850.00)
(Increase) / (Decrease) in inventories (3,500.00) (3,500.00)
Increase / (Decrease) in trade and other payables 4,400.00 5,875.00
Cash generated from operations 39,500.00 13,525.00
Interest paid (2,800.00) (2,800.00)
Income taxes paid (4,000.00) (3,000.00)
Dividends paid (1,850.00) (1,500.00)
Net cash from operating activities 30,850.00 6,225.00
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