The Cash Flow Statement accumulates, a company’s inflow and outflow of cash, meaning where a business’s money came from bills, by selling products etc. and goes outside when we pay money to buy something. It is also known as Statement of Cash Flows. The meaning of cash here all physical currency and money in a monitoring account. It is a basic financial statement which is used with the balance sheet and income statement.

Format of Cash Flow Statement

The blueprint of a cash flow for a company for yearly reporting purposes is validly explain. It should be in the format that is easy to understandable and easily manageable that can be used in the business. A basic and valuable format is shown in the example below.

Cash Flow Statement Template

Company Name

Cash Flow Statement

For the year ending

Cash at the begging of the year


Net income 11,000
Depreciation 12,000
Loss on sale of assets 3,000
Gain on sale of investments -4,000
Changes in working capital -5,000
Operating activities 17,000
Purchase of assets -45,000
Proceeds from the sale of investments 10,000
Proceeds from the sale of assets 5,000
Investing activities -30,000
Issue of new capital 12,000
Issue of new debt 26,000
Repayment of debt -8,000
Dividend payments -2,000
Financing activities 28,000
Net cash flow 15,000
Beginning cash balance 1,000
ending cash balance 16,000
Simple cash flow statement

Main Parts of Cash Flow Statement

It divides into three activities including Operating Activities, Investing Activities and Financing activities. Each activity shows particular type of cash flow inside and outside the company:

Operating Activities:

Selling and purchasing product and stockpile, paying wages to the employees of the company, and also paying operating expenses etc.

Investing Activities:

Investing activities consist of all the buying and selling goods like apparatus, lending money to others and collecting the key values, and investment securities etc.

Financing activities:

Financing activities include borrowing from the beneficiary and pay back loans and collect money from owners or investors etc.

Cash Flow Statement Template

A statement of cash flows can sum up data for any accounting period may be for one year. It may work for any duration of time and you can compare other accounting periods for a quick analysis of cash flows. It includes a list of earning and expenses, calculations of totals and net cash flows, and a simple layout for ease of use. You can also modify the template by adding or removing sections of the cash flow statement. Cash flow is important for the business survival. You can run business for a duration of time without profits but it cannot survive if the cash finish. The basic cash flow statement will expose to suppliers and the banks that the business has satisfactory assets to meet its cash fulfillment. Many people may be using your cash flow statement to take opinion about your business. It is important that you have a proper understanding of cash flow statement and assure that you are providing the correct information in the cash flow statement.

Leave a Reply

Your email address will not be published. Required fields are marked *