Excel Skills | Cash Flow Statement Template

Instructions
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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
instructions on the calculation of the line items which are included on the cash flow statement. The template includes
statements of cash flow that have been compiled based on both the direct and indirect methods.

The
Inputfollowing sheets
- this sheet are included
includes all the in thiscells
input template:
used in compiling the cash flow statement. User input consists of an income
statement and a balance sheet section as well as some additional information which is required in order to produce a cash
flow statement.
Direct - this sheet contains a cash flow statement based on the direct method which is automatically calculated from the
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 to
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 colou
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, 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 be
accessed by selecting the Review tab on the ribbon and selecting the Protect Sheet option from the Changes section o
the ribbon. You will 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 B2. 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, 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 with
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 statements
will not balance. Each of these control totals are covered in more detail in the Control Totals sub section of these
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 statements
not balancing.

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Excel Skills | Cash Flow Statement Template
Instructions
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The depreciation control total in row 57 highlights an inconsistency between the depreciation charges in the income
statement and the accumulated depreciation charges in the balance sheet (with disposals being taken into account). The
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 this
inconsistency.

The amortization control total in row 58 basically functions in the same way as the depreciation control total but is applied
to amortization and accumulated amortization on intangibles instead of depreciation on property, plant and equipment. The
same principle applies - the income statement charges are added back on the cash flow statement and if these charges
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 is
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 such
adjustments have been made, the adjustments need to be included in the adjustment section of the cash flow statements
on the Direct and Indirect sheets.

Cash Flow Statement Calculations

This section of the instructions provides more information on the calculations which are performed for each line item on 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.

Cash receipts from customers

This amount is calculated by adding the turnover amount to the opening trade accounts receivable balance and the trade
accounts receivable balance which forms part of business acquisitions for the particular period. The closing trade accounts
receivable balance is then deducted from this total in order to calculate the amount of cash which has been received from
customers.

Cash paid to suppliers and employees

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.

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

Profit before taxation
Less: Turnover
Add: Depreciation
Add: Amortization
Add: Interest expense
Less: Investment income
Add: Other non-cash items which are included in expenditure (for example: loss on disposal of equipment or intangibles)
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.

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Excel Skills | Cash Flow Statement Template
Instructions
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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 or loss before taxation and all non-cash
income & expenses and items which are included in other line items on the cash flow statements are then added back
from the calculated amounts.
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 the
sale of intangibles are non-cash items and are also added back. Balance sheet movements in reserves are also non-cash
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 should
therefore be deducted. An increase in payables, however, results in an inflow of cash (because less payments are made to
creditors) and should therefore be added in the calculation. A decrease in payables is therefore an outflow of cash and
should be deducted.

Note: The receivables and payables lines include multiple balance sheet items which have been consolidated into a single
line for cash flow statement purposes. Trade receivables, loans & advances and other receivables are grouped together in
the receivables lines and trade payables, sales tax, payroll accruals and other accruals are grouped together in the
payables lines on the cash flow statements.

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. 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 cash
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, in
determining the increase in inventory, the inventory amount which forms part of the business acquisition section is added
to the opening inventory balance on the balance sheet before deducting the closing inventory balance in order to
determine the movement in inventory between the two financial years 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 which were sold during the period under review
Less: Acquisitions financed through financial leases

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Excel Skills | Cash Flow Statement Template
Instructions
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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.

Purchase of intangible assets

These amounts are calculated in much the same way as the property, plant and equipment amounts but are based on
intangible assets instead. Finance leases also play no role in the calculation of intangible amounts because these are
unique to property, plant & equipment.

Proceeds from sale of equipment or intangibles

These amounts are the cash amounts which are received after the sale of equipment or intangible assets and are included
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
deducting 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 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 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 the
property, plant & equipment cash acquisitions total.

Payment of long-term borrowings

This amount is calculated as follows:

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

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Excel Skills | Cash Flow Statement Template
Instructions
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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 of
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 34 on the Direct sheet and row 45 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 [email protected] 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 o
international copyright laws.

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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

Balance Sheet 2020 2019 2018

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

Equity & liabilities

Equity
Share capital 150.00 150.00 125.00
Retained earnings 33,275.00 10,550.00 5,000.00
Reserves - - -
Non-current liabilities
Long term loans 29,900.00 23,850.00 16,300.00
Current liabilities
Trade payables 17,500.00 14,800.00 10,900.00
Sales tax 5,000.00 2,900.00 1,325.00
Payroll accruals 4,700.00 4,000.00 3,500.00
Other accruals 2,000.00 1,100.00 1,200.00
Interest payable 2,200.00 1,000.00 800.00
Income taxes payable 12,000.00 4,000.00 3,000.00
Dividends payable 7,575.00 1,850.00 1,500.00
Total equity and liabilities 114,300.00 64,200.00 43,650.00

Balance Sheet Control - - -

Depreciation Control - -
Amortization Control - -
Retained Earnings Control - -

Additional Information 2020 2019

Business Acquisitions Values

Property, plant and equipment 15,000.00 -
Intangible assets - -
Investments - -
Inventories 3,000.00 -
Accounts receivable 1,500.00 -
Cash 1,000.00 -
Trade payables (2,000.00) -
Long-term debt - -
18,500.00 -

Disposal of Property, Plant & Equipment

Cost 1,000.00 3,000.00
Accumulated Depreciation (700.00) (3,000.00)
Book value 300.00 -
Proceeds on sale of property, plant & equipment - 400.00
Profit / (Loss) on sale of equipment (300.00) 400.00

Disposal of Intangible Assets

Cost - -
Accumulated Amortization - -
Book value - -
Proceeds on sale of intangible assets - -
Profit / (Loss) on sale of intangibles - -

Long Term Debt

Loans raised 10,000.00 4,000.00
Finance lease acquisitions - 5,000.00
10,000.00 9,000.00

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Statement of Cash Flows
© www.excel-skills.com 2020 2019
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

Cash flows from investing activities

Business acquisitions, net of cash acquired (17,500.00) -
Purchase of property, plant and equipment (4,300.00) (2,000.00)
Purchase of intangible assets - (10,000.00)
Proceeds from sale of equipment - 400.00
Proceeds from sale of intagibles - -
Acquisition of investments (10,000.00) (1,500.00)
Investment income 4,800.00 2,700.00
Net cash used in investing activities (27,000.00) (10,400.00)

Cash flows from financing activities

Proceeds from issue of share capital - 25.00
Proceeds from long-term borrowings 10,000.00 4,000.00
Payment of long-term borrowings (3,950.00) (1,450.00)
Net cash used in financing activities 6,050.00 2,575.00

Net increase in cash and cash equivalents 9,900.00 (1,600.00)

Cash and cash equivalents at beginning of period 1,600.00 3,200.00

Cash and cash equivalents at end of period 11,500.00 1,600.00

Cash Balance Control Total - -

Notes to the Statement of Cash Flows 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
Amortization 1,000.00 1,000.00
Investment income (5,000.00) (3,500.00)
Interest expense 4,000.00 3,000.00
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

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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

Cash flows from investing activities

Business acquisitions, net of cash acquired (17,500.00) -
Purchase of property, plant and equipment (4,300.00) (2,000.00)
Purchase of intangible assets - (10,000.00)
Proceeds from sale of equipment - 400.00
Proceeds from sale of intagibles - -
Acquisition of investments (10,000.00) (1,500.00)
Investment income 4,800.00 2,700.00
Net cash used in investing activities (27,000.00) (10,400.00)

Cash flows from financing activities

Proceeds from issue of share capital - 25.00
Proceeds from long-term borrowings 10,000.00 4,000.00
Payment of long-term borrowings (3,950.00) (1,450.00)
Net cash used in financing activities 6,050.00 2,575.00

Net increase in cash and cash equivalents 9,900.00 (1,600.00)

Cash and cash equivalents at beginning of period 1,600.00 3,200.00

Cash and cash equivalents at end of period 11,500.00 1,600.00

Cash Balance Control Total - -

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