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Cash flow analysis, statement | Free template

Cash flow analysis is a template for establishing a financial cash analysis of a company. A cash flow analysis is a statement of a company's changes in liquidity.

A cash flow analysis includes cash receipts, cash disbursements and measure of cash flow. Cash flow is calculated as cash receipts minus cash disbursements. A cash flow analysis can be prepared using the indirect or direct method. The direct method to establish cash flow analysis is about to obtain data on cash receipts and cash disbursements directly from the source in the accounting system. The indirect method is about to create the cash flow analysis by using the income statement and balance sheet as the source for the statement.

A cash flow analysis is divided into three parts, cash flow from operations, cash flow from financing activities and cash flow from investing activities. This division into three parts is done in a transparent way to see where the total cash flow comes from in the business.

The cash flow analysis is free of accounting estimates and accruals, which makes it popular for non-accounting experts and financial analysts.

This template for cash flow analysis is primarily adapted to establish a cash flow statement using the indirect method. The starting point for the cash flow analysis is the operating income after depreciation and this measure is then adjusted for depreciation, financial items, taxes and changes in working capital. In order to establish a cash flow analysis using the indirect method, you need to have access to the income statement and balance sheet. The cash flow analysis results in a measure for closing cash balance that can be used to verify that the cash flow statement has been made in a proper way.
Updated: 01-01-2015 | Created by

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