Prepare your Cash Flow Statement by following the steps below:
Determine Operating Cash Flow. Start with Net Income and add back non-cash items. Determine the change in all Balance Sheet accounts associated with daily operations.
Determine Investing Cash Flow. Determine the change in all long term assets of the business.
Determine Financing Cash Flow. Determine the change in all loans, equity accounts (exclusive of net income).
Add the three components together to equal Total Cash Flow.
Add Cash Balance at the beginning of the period, and you should get the Cash Balance at the end of the period. If not, you've made an error somewhere. Recheck your math and the +/- signs for each of the balance sheet changes.
Here's a blank worksheet to help you get started:
Cash Flow Statement
For the Period From ____________ to ____________
|Operating Cash Flow|
|Net Income After Tax||____________|
|+ Depreciation and amortization||____________|
|+/- Decrease (Increase) in Accounts Receivable||____________|
|+/- Decrease (Increase) in Inventory||____________|
|+/- Decrease (Increase) in Other Current Assets||____________|
|+/- Increase (decrease) in Accounts Payable||____________|
|+/- Increase (decrease) in Accrued Expenses||____________|
|+/- Increase (decrease) in Other Current Liabilities||____________|
|Total Operating Cash Flow||____________|
|Investing Cash Flow|
|+/- Decrease (Increase) in Fixed Assets||____________|
|+/- Decrease (Increase) in Notes Receivable||____________|
|+/- Decrease (Increase) in securities, investments||____________|
|+/- Decrease (Increase) intangible, noncurrent assets||____________|
|Total Investing Cash Flow||____________|
|Financing Cash Flow|
|+/- Increase (decrease) in Borrowings||____________|
|+/- Increase (decrease) Capital Stock||____________|
|- Dividends Paid||____________|
|Total Financing Cash Flow||____________|
|Total Cash Flow||____________|
|Cash at beginning of period||____________|
|Cash at end of period||____________|