Fillable Form Cash Flow Statement

What is a Cash Flow Statement?

A Cash Flow Statement or also referred to as a Statement of Cash Flow is a financial statement used to report the summary of cash generated and spent for a specific period. A Cash Flow Statement presents how a company manages its cash inflows and outflows, and it measures how well a company generates cash to pay debts and fund its operations.

There are three sections of a Statement of Cash Flow:

• Operating Activities
• Investing Activities
• Financing Activities

The Operating Activities section is the principal revenue-generating activity from a company’s actual operation. Cash from this type of activity may be calculated using the direct or indirect method. Take note that either method will have the same results, but the process of calculation of the cash flow from operations is different.

The direct method uses a straightforward manner of calculating. It involves taking up the cash by adding all cash payments and receipts and other cash collections and subtracting cash disbursements. This method is commonly used for small businesses utilizing the cash basis accounting method.

The indirect method is calculated by starting with the net income from the income statement and adjusting it by subtracting or adding the difference from non-cash transactions. Adjustments are commonly used for depreciation and amortization.

The direct method is easier to understand but it takes a lot of time because this method requires accounting for every transaction that took place during the period. Hence, the indirect method is mostly used by companies as it is faster and linked to the balance sheet. Nonetheless, the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) accept both methods.

The Financing Activities section contains any kind of cash flow resulting from a change in the composition and size of the borrowings of the company or contributed equity capital. This section includes bonds, stock, and dividends.

The last section is the Financing Activities section. It includes any cash flow from disposal and acquisition of assets and other investments not considered cash equivalents. This section also covers inflows and outflows of financing activities, such as generating cash and paying debts to company creditors and investors.

While the Cash Flow Statement is an effective way of tracking the company’s income and expenses, you should take note of the overall financial changes in your company. A negative cash flow should not be taken in a bad light without analysis.

If your company has poor cash flow, it is a result of its decision to expand the business at a certain period. Make sure to analyze these changes and know the next steps to generate more income or where to invest your money.

A cash flow statement also gives a prospective investor an idea about the performance of your company, whether it is performing well or it is becoming bankrupt. You must also consider checking your statement of cash flow with the other two financial statements.

A cash flow statement is different from an income statement and a balance sheet. A cash flow statement does not have future incoming and outgoing cash.

You may download a PDF copy of the Cash Flow Statement Template from websites that offer document templates. But you may electronically fill it out on PDFRun for your convenience.

How to fill out a Cash Flow Statement?

Provide all necessary information in the required fields. Make sure that everything you enter is true, accurate, and correct.

Company Name

Enter the Company Name.

For the Date Ended

Enter the date ended.

Operating Activities

The cash from operating activities is the most important section in the Statement of Cash Flow. Operating activities include sources and uses of cash from business activities, which means that this section includes most of your cash flow.

Cash Sales

Enter the amount of cash sales.

Collection from Accounts Receivable

Enter the amount of collection from accounts receivable.

Less:

Suppliers and Freight Charges

Enter the amount of suppliers and freight charges.

Payment for Rent

Enter the amount of payment for rent.

Payment for Utilities

Enter the amount of payment for utilities.

Payment for Salaries

Enter the amount of payment for salaries.

Payment for Advertising

Enter the amount of payment for advertising.

Payment for Supplies

Enter the amount of payment for supplies.

Payment for Transportation

Enter the amount of payment for transportation.

Payment for Permits and Licenses

Enter the amount of payment for permits and licenses.

Payment for Tax

Enter the amount of payment for tax.

Cash Flow from Operating Activities

Enter the total amount of cash flow from operating activities.

Investing Activities

Cash from Investing Activities includes all investments your company has made. This includes real estate, purchasing equipment, sales of assets, loans, or other liquidated financial products known as “cash equivalents.” The items in this section are also considered cash-out items.

Acquisition of Equipment

Enter the amount of acquisition of equipment.

Acquisition of Furniture and Fixtures

Enter the amount of acquisition of furniture and fixtures.

Cash Flow from Investing Activities

Enter the total amount of cash flow from investing activities.

Financing Activities

Financial activities cover debt and equity financings, such as dividends, repayment of debt loans, and payment for stock repurchases. These cash-in changes happen when the capital is raised and it is cash-out when the dividends are paid.

Investment from Partners

Enter the amount of investment from partners.

Less:

Withdrawal

Enter the amount of withdrawal.

Cash Flow from Financing Activities

Enter the total amount of cash flow from financing activities.

Net Cash Increase (Decrease)

Enter the amount of net cash increase.

Beginning Cash Balance

Enter the amount of the beginning cash balance.

Ending Cash Balance

Enter the amount of the ending cash balance.

Frequently Asked Questions About a Cash Flow Statement

How to file a Cash Flow Statement?

A statement of cash flow can be done by anyone, but bookkeepers or accountants are usually in charge of the company’s cash flow statements. Make sure you do a monthly cash flow statement and keep track of them so that the company is updated with the incoming and outgoing cash flow.

To do a statement of cash flow, you will need to gather all the financial information for the month. This includes sales, invoices, expenses, investments, and any other type of income or expenditure. Once you have all this information, you can start categorizing it into three sections: operating activities, investing activities, and financing activities.

Operating activities are the day-to-day operations of the business. This can include sales, manufacturing, customer service, etc.

Investing activities are things like buying equipment or property, investing in stocks or bonds, and other long-term investments.

Financing activities are anything that has to do with borrowing money, such as taking out loans or issuing stock.

Once you have categorized all the information, you can start putting it into a cash flow statement. This will show how much cash is coming in and going out, as well as what the net change is for the month.

If you are having trouble putting together a cash flow statement, there are many templates and programs available online that can help you. Make sure you find one that is tailored to your specific business so that it is accurate.

Completing a cash flow statement is an important part of running a business. It will give you a clear picture of the company’s financial health and where the money is coming from and going. This information can be used to make important decisions about the business and its future.

What are the 3 types of cash flows?

The three types of cash flows are operating activities, investing activities, and financing activities.

• Operating Activities — These are the cash flows that result from the company’s primary business activities. Examples include cash received from customers for goods or services, cash paid to suppliers for inventory, and cash paid to employees for salaries and wages.
• Investing Activities — These are the cash flows that result from the company’s investments in long-term assets such as property, plants, and equipment. Examples include cash paid to purchase new equipment or real estate, and cash received from the sale of investments.
• Financing Activities — These are the cash flows that result from the company’s borrowing and lending activities. Examples include cash received from the issuance of new debt, cash paid to repay existing debt, and cash paid to shareholders in the form of dividends.

These three types of cash flows are all interrelated. For example, a company may use cash from its operating activities to finance its investments in long-term assets. Or a company may use cash from its financing activities to fund its operations. It’s important to understand the relationships between these different types of cash flows in order to make informed decisions about a company’s financial health.

While all cash flows are important, operating cash flow is typically the most closely watched by analysts and investors. This is because it provides insight into a company’s ability to generate revenue and profit from its day-to-day operations.

The other two types of cash flows, investing and financing, can be more volatile and less predictable. For example, a company may use cash from its financing activities to fund an acquisition, which could boost its growth prospects in the long term. But this same cash could also be used to pay down debt, which would have a positive impact on the company’s financial health but may not do much to grow the business.

Investors and analysts often use ratios such as the operating cash flow ratio and the free cash flow ratio to measure a company’s financial health and assess its investment potential.

The operating cash flow ratio is a measure of a company’s ability to generate cash from its operations. It is calculated by dividing a company’s operating cash flow by its total debt. A higher ratio indicates that a company is better able to cover its debt payments with cash from its operations.

The free cash flow ratio is a measure of a company’s ability to generate cash flow that is available for reinvestment or can be used to pay down debt. It is calculated by dividing a company’s free cash flow by its total debt. A higher ratio indicates that a company has more cash available for reinvestment or debt reduction.

Ratios such as the operating cash flow ratio and the free cash flow ratio measure a company’s financial health and assess its investment potential. These ratios can give you valuable insights into a company’s operational efficiency and overall financial strength.

When analyzing a company, it’s important to look at all three types of cash flows in order to get a complete picture of its financial health. Each type of cash flow provides different information that can be useful in making investment decisions.

Who uses a cash flow statement?

The primary users of a cash flow statement are investors, creditors, and analysts who use it to assess a company's liquidity, solvency, and overall financial health. A cash flow statement can also be used by management to assess and monitor a company's short-term and long-term financing needs.

As a document, a cash flow statement is useful in that it provides a snapshot of a company's financial condition at a given point in time. This can be especially helpful when trying to assess trends over time or compare a company's financial condition to that of its competitors.

In short, a cash flow statement is an important tool for anyone who wants to get a clear picture of a company's financial health.

If you're thinking of investing in a company, or if you're already an investor, you should definitely take a look at its cash flow statement. And if you're a creditor or analyst, a cash flow statement can give you valuable insights into a company's ability to pay its debts and meet its financial obligations.

Why is a cash flow statement important?

A cash flow statement is important because it provides insights into a company's ability to generate cash and its overall financial health. It can also be used to identify trends, assess risk, and make decisions about investing and financing.

Here are some of the benefits of cash flow statements:

• Improved decision making — A cash flow statement can help you make informed decisions about where to invest your money and how to finance your business.
• Increased transparency — A cash flow statement can make it easier for outsiders, such as shareholders and creditors, to understand your company's financial situation.
• Better risk management — By understanding your company's cash flow, you can better manage risks associated with potential shortfalls.
• Enhanced financial planning — A cash flow statement can be used to predict future cash needs and formulate a financial plan accordingly.
• Improved communication — A clear and concise cash flow statement can improve communication between management and other stakeholders.

Overall, a cash flow statement is an important tool that can be used to assess a company's financial health and make informed decisions about investing and financing. While there are some limitations to cash flow statements, such as not being able to capture all forms of cash flow or providing only limited information about a company's overall financial picture, they nonetheless provide valuable insights into a company's ability to generate cash.

What is the purpose of a cash flow statement?

A cash flow statement is a financial statement that provides a snapshot of a company's inflow and outflow of cash. It is used to assess the solvency of a company, as well as its ability to generate cash flow. The statement can be used by creditors and investors to assess the riskiness of lending money to or investing in a company.

The purpose of a cash flow statement is twofold: first, it shows how much cash a company has on hand at any given time; and second, it provides insights into a company's short-term liquidity, which is crucial for survival. In other words, the statement helps creditors and investors determine whether or not a company will be able to meet its financial obligations in the short term.

What are the benefits of cash flow?

There are many benefits of cash flow, including:

• Better financial planning and control — When you have a good handle on your cash flow, it makes it much easier to plan and control your finances. This can help you avoid financial problems in the future.
• Increased profitability — Good cash flow management can lead to increased profitability for your business. This is because you will be able to make better use of your assets and reduce your costs.
• Improved decision-making — With good cash flow information, you will be able to make better decisions about where to invest your money and how to grow your business. This can lead to improved performance and increased profits.
• Greater flexibility — Good cash flow gives you the flexibility to respond quickly to changes in the market or your business. This can help you take advantage of opportunities as they arise and avoid potential problems.
• Reduced stress — When you have good cash flow, it can reduce stress levels in your business. This is because you will be able to meet your obligations on time and not have to worry about where the money is coming from.

Overall, there are many benefits of cash flow. By increasing your understanding of cash flow and learning how to manage it effectively, you can reap these benefits and improve your business's bottom line.

What are the elements of a cash flow statement?

There are three major components of a cash flow statement: operating activities, investing activities, and financing activities.

Operating activities include cash inflows and outflows from a company's core business operations. This can include items like revenue from sales, payments to suppliers, or money spent on employee wages.

Investing activities involve cash flow related to a company's investments, such as the purchase or sale of property or equipment.

Financing activities are those that involve a company's borrowing and lending activity. This can include issuing new debt, taking out loans, or repaying existing debts.

These three categories can be further broken down into more specific line items, but these are the broad strokes.

What are the two types of cash flow statements?

There are two types of cash flow statements:

• Direct method — The direct method lists cash receipts and cash payments by operating, investing, and financing activities.
• Indirect method — The indirect method adjusts net income for the changes in balance sheet accounts to arrive at cash from operating activities. The indirect method is more commonly used than the direct method.

These two methods must result in the same bottom-line cash balance, but the presentation of the information may be different.

Both methods have their pros and cons, so it’s important to understand both before deciding which one to use. Here are some of their pros and cons:

Direct Method Pros:

• Provides more transparency into a company’s operating cash flow.
• Gives investors a better idea of how much cash is coming in and going out each period.
• Is required by International Financial Reporting Standards (IFRS).

Direct Method Cons:

• Requires more work to prepare than the indirect method.
• Some items, such as depreciation, are difficult to assign to specific cash flows.
• Not as commonly used as the indirect method, so it may be less familiar to investors.

Indirect Method Pros:

• Is simpler to prepare than the direct method.
• All companies already report the net income on their income statements, so there is no need to calculate it separately.
• Adjustments for non-cash items are clear and easy to make.
• More commonly used than the direct method, so it may be more familiar to investors.

Indirect Method Cons:

• Does not provide as much information about a company’s operating cash flow as the direct method.
• Can be less transparent than the direct method, since it relies on accrual accounting principles.
• Not required by IFRS, though companies may choose to use it if they feel it provides a more accurate picture of their cash flow from operations.

Is cash debit or credit?

Cash is a debit account because it represents an asset. When you receive cash, you are increasing your assets. When you spend cash, you are decreasing your assets.

Moreover, when you prepare your financial statements, you will list your assets first and then your liabilities. Therefore, cash is a debit account.

Is cash flow the same as income?

No, cash flow is not the same as income. Income is the total amount of money that comes into your business, while cash flow is the net amount of cash that flows into and out of your business. Your business may have a positive cash flow if more cash is flowing into your business than flowing out. Alternatively, your business may have a negative cash flow if more cash is flowing out of your business than flowing in. either way, it's important to keep track of both your income and your cash flow so you can make informed decisions about how to manage your finances.

Moreover, while income can be generated from a variety of sources, cash flow typically comes from three main sources: operating activities, investing activities, and financing activities. So, even if your business is generating a lot of income, it may still have negative cash flow if more money is going out than coming in from these three key sources.

What are the three main components of a cash flow statement?

The three main components of a cash flow statement are operating activities, investing activities, and financing activities. Operating activities include cash receipts and cash payments related to a company's primary revenue-generating activities. Investing activities include cash receipts and payments related to investments in long-term assets such as property, plants, and equipment. Financing activities include cash receipts and payments related to a company's borrowing and lending activities.

What is the most important part of a cash flow statement?

The most important part of a cash flow statement is the section that details where your money came from (revenues) and where it went (expenses). This information can help you better understand your business's financial health and make more informed decisions about how to allocate your resources.

Moreover, the cash flow statement can also be used as a tool for forecasting future cash needs. By understanding how cash flows in and out of your business, you can make better predictions about when and how much cash you will need to keep your business running smoothly.

What are the 4 basic types of financial statements?

There are four basic types of financial statements. Each one provides valuable information about a company's financial health and performance:

• The balance sheet — This shows a company's assets, liabilities, and shareholder equity at a specific point in time. It can help investors determine whether a company has the financial resources to pay its debts and meet its other obligations.
• The income statement — This reports a company's revenue, expenses, and net income over a period of time. It can give investors an idea of how profitable a company is and how well it is managed.
• The cash flow statement — This reports a company's inflows and outflows of cash over a period of time. It can help investors assess a company's financial health and its ability to generate cash to pay its debts and other obligations.
• The statement of shareholders' equity — This shows a company's changes in shareholder equity over a period of time. It can help investors see how much money shareholders have invested in the company and how that investment has changed over time.

All four of these financial statements are important when assessing a company's financial health. They can provide insights into a company's profitability, solvency, and liquidity.

What's the opposite of cash flow?

Outbound cash flow is the opposite of cash flow. Outbound cash flow is when a company pays out more money than it takes in. This can happen when a company is growing quickly and needs to invest in new inventory, hire new employees, or open new locations. It can also happen when a company is struggling and needs to sell off assets or take out loans. Either way, outbound cash flow is not a good sign for a company's financial health.

In contrast, positive cash flow means that a company is bringing in more money than it is spending. This is a good sign for a company's financial health, as it indicates that the company is generating enough revenue to cover its expenses. Positive cash flow is essential for a company to be able to pay its bills, make investments, and grow.

How can cash flow be improved?

There are a few ways to improve cash flow. One is to increase revenue. This can be done by finding new customers, selling more to existing customers, or increasing prices. Another way to improve cash flow is to reduce expenses. This can be done by cutting costs, negotiating better terms with suppliers, or automating processes. Finally, another way to improve cash flow is through financing. This can involve taking out loans, issuing bonds, or selling equity in the company.

Improving cash flow is essential for any company that wants to be financially healthy and successful. There are many different ways to do this, but all of them require careful planning and execution. With the right strategy, any company can improve its cash flow and get on the path to financial success.

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