A 3 year cash flow statement template is a financial document that summarizes the amount of cash and cash equivalents entering and leaving a company over a three-year period.
This statement is used to assess a company’s financial health and its ability to generate cash flow. It is also used by investors to make decisions about whether or not to invest in a company.
The 3 year cash flow statement template includes three sections: operating activities, investing activities, and financing activities. The operating activities section shows the cash flow from the company’s core operations, such as sales, expenses, and depreciation.
How to create a 3 year cash flow statement template
To create a 3 year cash flow statement template, you will need to gather the following information:
- The company’s income statement for the past three years
- The company’s balance sheet for the past three years
- The company’s statement of cash flows for the past three years
Once you have gathered this information, you can follow these steps to create a 3 year cash flow statement template:
- Start by creating a new spreadsheet.
- In the first column, list the years for which you are creating the cash flow statement.
- In the second column, list the operating activities for the company.
- In the third column, list the investing activities for the company.
- In the fourth column, list the financing activities for the company.
- In the fifth column, calculate the net cash flow for each year.
- Format the spreadsheet so that it is easy to read and understand.
Benefits of using a 3 year cash flow statement template
There are many benefits to using a 3 year cash flow statement template. These benefits include:
- It can help you to track your company’s financial performance over time.
- It can help you to identify trends in your company’s cash flow.
- It can help you to make better decisions about how to manage your company’s cash flow.
- It can help you to attract investors.
- It can help you to improve your company’s financial health.
Conclusion
A 3 year cash flow statement template is a valuable tool for any business. It can help you to track your company’s financial performance, identify trends, and make better decisions about how to manage your cash flow.
If you are not already using a 3 year cash flow statement template, I encourage you to start using one today. It is a simple and effective way to improve your company’s financial health.
