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 that 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 following sheets are included in this template: Info - this sheet includes all the input cells that are used in compiling the cash flow statement. User input consists of an income statement and a balance sheet as well as some additional information that is required in order to produce a cash flow statement. Direct - this sheet includes a complete cash flow statement based on the direct method that is automatically calculated from the information that is entered on the Info sheet. No user input is required on this sheet. Indirect - this sheet includes a complete cash flow statement based on the indirect method that is automatically calculated from the information that is entered on the Info sheet. No user input is required on this sheet.

User Input
All the cells on the Info sheet that 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 that are indicated in yellow require positive values to be entered, while the cells that are indicated in green require negative values to be entered. Cells that don't have a yellow or green colour 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, we recommend that you 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 main Tools menu, selecting Protection and selecting the Protect Sheet option. You will then 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 B3. 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, plant and equipment or 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 balance sheet control total in row 48 has been added to the sheet in order to highlight an imbalance on the balance sheet after entering the required balance sheet information. If an imbalance is encountered, the appropriate cells in this row will be highlighted in orange. Similarly, the depreciation control total in row 49 will indicate if the sum of the depreciation that is specified in the income statement section and the accumulated depreciation that is specified in the Disposal of Property, Plant & Equipment section does not agree to the movement in the accumulated depreciation balance on the balance sheet. Any imbalance that is encountered will also be highlighted in orange.

Cash Flow Statement Calculation

This section of the instructions provides more information on the calculations that are performed for each line item that is included in 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.

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Excel Skills | Cash Flow Statement Template

Instructions
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Excel Skills | Cash Flow Statement Template

Instructions
www.excel-skills.com
Cash receipts from customers This amount is calculated by adding the appropriate turnover amount to the opening accounts receivable balance and the accounts receivable balance that forms part of business acquisitions for the particular period. The closing accounts receivable balance is then deducted from this total in order to calculate the amount of cash that has been received from customers. Cash paid to suppliers and employees This amount is determined by calculating the cash generated from operations and deducting the cash receipts from customers from this amount. 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: Interest expense Less: Investment income Add: Other non-cash items that are included in expenditure (for example: loss on disposal of equipment) 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. 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 before taxation and all non-cash income & expenses and items that are included in other line items on the cash flow statement are then added back. Investment income and interest expenses are added back because these items are included separately on the cash flow statement. The depreciation and profit or loss from sale of property, plant & equipment amounts are non-cash items and are therefore also added back. The net effect of all working capital balances are then deducted in the calculation because these items also form part of 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 trade payables, however, results in an inflow of cash (because less payments are made to trade creditors) and should therefore be added in the calculation. A decrease in trade payables is therefore an outflow of cash and should be deducted. 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. All three amounts are negative because all three items result in an outflow of cash. Business Acquisitions

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Excel Skills | Cash Flow Statement Template

Instructions
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This amount should be the total amount that was paid in order to acquire a new or existing business net of the cash amount that was received from the business that was acquired.

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Excel Skills | Cash Flow Statement Template

Instructions
www.excel-skills.com
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 that 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 that are 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 that 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 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. Proceeds from sale of equipment This amount is the cash amount that is received after the sale of equipment and is included in the Additional information section on the Info sheet. Acquisition of portfolio investments This amount is calculated by deducting the closing portfolio investment balance from the opening portfolio investment balance. 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 Info sheet and should include all the long term debt that 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.

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Excel Skills | Cash Flow Statement Template

Instructions
www.excel-skills.com
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 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 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 32 on the Direct sheet and row 40 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 support@excel-skills.com 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 of international copyright laws.

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Financial Information
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Current Reporting Period Income Statement

Turnover Cost of sales Gross profit Depreciation Administrative and selling expenses Interest expense Investment income Profit before taxation Taxes on income Profit Dividends paid Retained Earnings

2013 2013
31,650.00 (26,000.00) 5,650.00 (450.00) (950.00) (400.00) 500.00 4,350.00 (300.00) 4,050.00 (1,200.00) 2,850.00

2012
26,520.00 (24,280.00) 2,240.00 (260.00) (800.00) (300.00) 350.00 1,230.00 (145.00) 1,085.00 (200.00) 885.00

Balance Sheet Assets

Cash and cash equivalents Accounts receivable Interest receivable Inventory Portfolio investments Property, plant and equipment at cost Accumulated depreciation Property, plant and equipment net

2013

2012

2011

1,230.00 1,800.00 100.00 2,200.00 2,500.00 3,730.00 (1,450.00) 2,280.00

160.00 1,200.00 1,650.00 2,500.00 1,910.00 (1,060.00) 850.00

320.00 695.00 900.00 2,000.00 1,500.00 (800.00) 700.00

Total assets Liabilities

Trade payables Interest payable Income taxes payable Dividends payable Long term debt

10,110.00

6,360.00

4,615.00

250.00 230.00 400.00 1,200.00 2,300.00

1,890.00 100.00 400.00 200.00 1,140.00

1,690.00 80.00 300.00 800.00

Total liabilities Shareholders equity

Share capital Retained earnings

4,380.00

3,730.00

2,870.00

1,500.00 4,230.00

1,250.00 1,380.00

1,250.00 495.00

Total shareholders equity Total liabilities and shareholders equity

Balance Sheet Control Total Depreciation Control Total

5,730.00 10,110.00
-

2,630.00 6,360.00
-

1,745.00 4,615.00
-

Additional Information Business Acquisitions Values

Inventories Accounts receivable Cash Property, plant and equipment Trade payables Long-term debt

2013

2012

100.00 100.00 40.00 650.00 (100.00) (200.00) 590.00

Disposal of Property, Plant & Equipment

Cost Accumulated Depreciation Book value Proceeds Profit / (Loss) on sale of equipment 80.00 (60.00) 20.00 70.00 50.00 -

Long Term Debt

Loans raised Finance lease acquisitions 250.00 900.00 1,150.00 200.00 210.00 410.00

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