A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. It is used to assess a company’s ability to generate cash, and can be used to identify potential financial problems. There are three main types of cash flow statements: operating, investing, and financing.
The operating cash flow statement shows the cash generated from a company’s normal operations. This includes cash from sales, less cash paid for expenses. The investing cash flow statement shows the cash used to purchase or sell assets, such as property, plant, and equipment. The financing cash flow statement shows the cash used to raise capital, such as issuing stock or taking on debt.
## Creating a Cash Flow Statement in Excel
To create a cash flow statement in Excel, you will need to gather the following information:
- Beginning cash balance
- Ending cash balance
- Net income
- Changes in working capital
- Depreciation and amortization
- Capital expenditures
- Issuance of stock
- Repayment of debt
Once you have gathered this information, you can follow these steps to create a cash flow statement in Excel:
1. Open a new Excel workbook.
2. Enter the beginning cash balance in cell A1.
3. Enter the ending cash balance in cell A2.
4. Calculate the net income by subtracting the cost of goods sold, operating expenses, and taxes from the revenue. Enter the net income in cell A3.
5. Calculate the changes in working capital by subtracting the beginning working capital from the ending working capital. Enter the changes in working capital in cell A4.
6. Enter the depreciation and amortization expense in cell A5.
7. Enter the capital expenditures in cell A6.
8. Enter the issuance of stock in cell A7.
9. Enter the repayment of debt in cell A8.
10. Calculate the operating cash flow by adding the net income, depreciation and amortization, and changes in working capital. Enter the operating cash flow in cell A9.
11. Calculate the investing cash flow by adding the capital expenditures and subtracting the issuance of stock. Enter the investing cash flow in cell A10.
12. Calculate the financing cash flow by adding the repayment of debt and subtracting the issuance of stock. Enter the financing cash flow in cell A11.
13. Calculate the ending cash balance by adding the beginning cash balance, operating cash flow, investing cash flow, and financing cash flow. Enter the ending cash balance in cell A12.
## Using a Cash Flow Statement Template
If you do not want to create a cash flow statement from scratch, you can use a cash flow statement template. There are many different cash flow statement template excel free available online. To use a template, simply download it and enter your own financial data.
Using a cash flow statement template can save you a lot of time and effort. However, it is important to remember that templates are not always perfect. You should always review the template carefully and make sure that it is appropriate for your needs.
## Conclusion
A cash flow statement is an important financial statement that can be used to assess a company’s ability to generate cash. Creating a cash flow statement in Excel is a relatively simple process, but it is important to gather the correct information and follow the steps carefully.
If you do not want to create a cash flow statement from scratch, you can use a cash flow statement template excel free. However, it is important to remember that templates are not always perfect. You should always review the template carefully and make sure that it is appropriate for your needs.
