Statement of cash flows [in-depth guide]
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The numbers in the statement of cash flows are derived from the changes in a business's balance sheet accounts during the year. Changes in the balance sheet accounts drive the amounts reported in the statement of cash flows.
The report will look at specific account types and transactions that occurred within the selected date range.
For the following example, the values are based on "This Fiscal Year".
Each section will be explained below:
Statement of cash flow calculation
Net Income +Account Receivable + Current Assets + Accounts Payable + Current Liability = Net cash increase or decrease for a period
Net income: This field is based upon the calculated net income from the corporate P&L
How the value is calculated:
Run corporate profit & loss for the designated start date and end date of your cash flow statement
Ex. start date= 1/1/2021 and end date= 12/31/2021>>run corporate P&L with same date range.
The net income value displayed will be used
-1110.00
Account type: Accounts receivable> Each account designated with this type will be listed in the report. The displayed value is calculated based on balance sheet results.
How the value is calculated:
(Run balance sheet for as of date equal to one day prior to the start date of your cash flow Statement
Ex. start date= 1/1/2021>>run balance sheet as of 12/31/2020)
subtract
(Run balance sheet as of date equal to the end date of your cash flow statement
Ex. end date = 12/31/2021>> run balance sheet as of 12/31/2021)
equals
Accounts receivable cash flow value
40989 - 8191 = 32798
Account type: Current asset> Each account designated with this type will be listed in the report. The displayed value is calculated based on the balance sheet results.
How is the value calculated:
(Run balance sheet for as of date equal to one day prior to the start date of your cash flow Statement
Ex. start date= 1/1/2021>>run balance sheet as of 12/31/2020)
subtract
(Run balance sheet as of date equal to the end date of your cash flow statement
Ex. end date = 12/31/2021>> run balance sheet as of 12/31/2021)
equals
Current asset cash flow value
-763 - 200 = -963
Account type: Accounts payable> Each account designated with this type will be listed in the report. The displayed value is calculated based on balance sheet results.
How is the value calculated: NOTE: This is calculated using the current period - past period
(Run balance sheet as of date equal to the end date of your cash flow statement
Ex. end date = 12/31/2021>> run balance sheet as of 12/31/2021)
subtract
(Run balance sheet for as of date equal to one day prior to the start date of your cash flow Statement
Ex. start date= 1/1/2021>>run balance sheet as of 12/31/2020)
equals
Accounts payable cash flow value
16350 - 15350 = 1000
Account type: Current liability > Each account designated with this type will be listed in the report. The displayed value is calculated based on balance sheet results.
How is the value calculated: NOTE: This is calculated using the current period - past period
(Run balance sheet as of date equal to the end date of your cash flow statement
Ex. end date = 12/31/2021>> run balance sheet as of 12/31/2021)
subtract
(Run balance sheet for as of date equal to one day prior to the start date of your cash flow Statement
Ex. start date= 1/1/2021>>run balance sheet as of 12/31/2020)
equals
Current liability cash flow value
6500 - 5000 = 1500
Cash at beginning of period
Account type: Bank > Each account designated with this type will be listed in the report. The displayed value is calculated based on balance sheet results.
How is the value calculated:
Run the balance sheet as of the day prior to the start date of your cash flow statement. Sum all bank accounts
227570.38 + 135 = 227705.38
Cash at end of period
Account type: Bank > Each account designated with this type will be listed in the report. The displayed value is calculated based on balance sheet results.
How is the value calculated:
Run the balance sheet as of the end date of your cash flow statement. Sum all bank accounts
260930.38 + 135 = 261065.38
The above calculations provided the values displayed below for the statement of cash flows for the period of "This Fiscal Year".