Cash flow financial statement templates are valuable tools for businesses of all sizes. They provide a snapshot of a company’s cash flow over a period of time, and can be used to track progress, identify trends, and make informed decisions.
There are many different types of cash flow financial statement templates available, but they all share some common features. The most important parts of a cash flow statement template include:
Operating Activities
The operating activities section of a cash flow statement template shows the cash flow generated by a company’s core business operations. This includes revenue from sales, as well as expenses such as cost of goods sold, salaries, and marketing. Operating activities are the most important part of a company’s cash flow, as they provide the cash that is needed to pay for ongoing expenses and invest in future growth.
The operating activities section of a cash flow financial statement template typically includes the following:
- Net income
- Adjustments for non-cash items
- Changes in working capital
- Depreciation and amortization
The net income figure is the starting point for the operating activities section of a cash flow statement template. This figure represents the profit or loss that a company has generated from its core business operations. Adjustments for non-cash items are then made to the net income figure to account for items that did not involve the receipt or payment of cash. Changes in working capital are also added to the net income figure to account for changes in the company’s accounts receivable, inventory, and accounts payable.
Depreciation and amortization are non-cash expenses that are added back to the net income figure to calculate the cash flow from operating activities. Depreciation is the allocation of the cost of a fixed asset over its useful life, while amortization is the allocation of the cost of an intangible asset over its useful life.
Investing Activities
The investing activities section of a cash flow statement template shows the cash flow generated by a company’s investing activities. This includes the purchase and sale of fixed assets, as well as the purchase and sale of securities. Investing activities are important for a company’s long-term growth, as they provide the cash that is needed to purchase new equipment, expand into new markets, and develop new products.
The investing activities section of a cash flow financial statement template typically includes the following:
- Purchase of fixed assets
- Sale of fixed assets
- Purchase of securities
- Sale of securities
The purchase of fixed assets is the largest cash outflow in the investing activities section of a cash flow statement template. This figure represents the cost of new equipment, buildings, and other fixed assets that a company has purchased. The sale of fixed assets is the largest cash inflow in the investing activities section of a cash flow statement template. This figure represents the proceeds from the sale of old equipment, buildings, and other fixed assets.
The purchase of securities is another cash outflow in the investing activities section of a cash flow statement template. This figure represents the cost of new stocks and bonds that a company has purchased. The sale of securities is another cash inflow in the investing activities section of a cash flow statement template. This figure represents the proceeds from the sale of old stocks and bonds.
Financing Activities
The financing activities section of a cash flow financial statement template shows the cash flow generated by a company’s financing activities. This includes the issuance and repayment of debt, as well as the issuance and repurchase of stock. Financing activities are important for a company’s capital structure, as they provide the cash that is needed to pay for dividends, interest payments, and stock repurchases.
The financing activities section of a cash flow financial statement template typically includes the following:
- Issuance of debt
- Repayment of debt
- Issuance of stock
- Repurchase of stock
The issuance of debt is the largest cash inflow in the financing activities section of a cash flow statement template. This figure represents the proceeds from the issuance of new bonds or loans. The repayment of debt is the largest cash outflow in the financing activities section of a cash flow statement template. This figure represents the principal and interest payments on a company’s outstanding debt.
The issuance of stock is another cash inflow in the financing activities section of a cash flow statement template. This figure represents the proceeds from the issuance of new shares of stock. The repurchase of stock is another cash outflow in the financing activities section of a cash flow statement template. This figure represents the cost of repurchasing shares of a company’s own stock.
Conclusion
A cash flow financial statement template is a valuable tool for businesses of all sizes. It can be used to track progress, identify trends, and make informed decisions. By using a cash flow financial statement template, businesses can gain a better understanding of their financial performance and make the necessary adjustments to improve their cash flow.
There are many different types of cash flow financial statement templates available, so it is important to choose one that is appropriate for your business. Once you have chosen a template, be sure to customize it to fit your specific needs.
