Improve your financial decision-making with our comprehensive Cash Flow Analysis Template, fine-tuning records and guiding your business towards its goals.
1
Identify the accounting period for analysis
2
Gather income statements for the chosen period
3
Gather balance sheets for the chosen period
4
Calculate net income for the chosen period
5
Calculate change in current assets
6
Calculate change in current liabilities
7
Calculate change in fixed assets
8
Calculate change in long-term liabilities
9
Combine all calculations to calculate Cash Flow from Operations
10
Calculate Cash Flow from Investing
11
Calculate Cash Flow from Financing
12
Combine all cash flows to calculate Total Cash Flow
13
Decision: Does Total Cash Flow meet the company goals?
14
Approval: CFO
15
Document the results and findings of the analysis
16
Filing the documents with all calculations and results
17
Present the results to the board of directors
Identify the accounting period for analysis
This task involves determining the specific time period for conducting the cash flow analysis. It is crucial to choose the appropriate accounting period to ensure accurate analysis. The desired result is to identify the start and end dates for the analysis period. Consider potential challenges such as overlapping fiscal years or incomplete financial data. Required resources include financial statements and historical records.
Gather income statements for the chosen period
This task aims to collect the income statements for the selected accounting period. Income statements provide crucial information about revenue, expenses, and net income. The desired result is to gather accurate and complete income statements for the analysis. Consider potential challenges such as missing or incorrect data. Required resources include financial documents and access to accounting software.
Gather balance sheets for the chosen period
This task involves collecting the balance sheets for the chosen accounting period. Balance sheets provide a snapshot of the company's financial position, including its assets and liabilities. The desired result is to gather accurate and complete balance sheets for the analysis. Consider potential challenges such as missing or incorrect data. Required resources include financial documents and access to accounting software.
Calculate net income for the chosen period
We need to calculate the net income for the chosen period. This is done by subtracting expenses from revenues. What is the total amount of revenues and expenses for the period?
Calculate change in current assets
We need to calculate the change in current assets. This will help us determine the cash flow from operating activities. What is the total value of current assets at the beginning and end of the period?
Calculate change in current liabilities
We need to calculate the change in current liabilities. This will help us determine the cash flow from operating activities. What is the total value of current liabilities at the beginning and end of the period?
Calculate change in fixed assets
We need to calculate the change in fixed assets. This will help us determine the cash flow from investing activities. What is the total value of fixed assets at the beginning and end of the period?
Calculate change in long-term liabilities
We need to calculate the change in long-term liabilities. This will help us determine the cash flow from financing activities. What is the total value of long-term liabilities at the beginning and end of the period?
Combine all calculations to calculate Cash Flow from Operations
Let's combine all the calculations to determine the cash flow from operations. This includes the changes in current assets and liabilities as well as the net income. What is the cash flow from operations?
Calculate Cash Flow from Investing
We need to calculate the cash flow from investing activities. This includes the changes in fixed assets. What is the cash flow from investing activities?
Calculate Cash Flow from Financing
We need to calculate the cash flow from financing activities. This includes the changes in long-term liabilities. What is the cash flow from financing activities?
Combine all cash flows to calculate Total Cash Flow
Let's combine all the cash flows from operations, investing, and financing to determine the total cash flow. What is the total cash flow?
Decision: Does Total Cash Flow meet the company goals?
Based on the total cash flow calculated, we need to assess if it meets the company's goals. Does the total cash flow meet the company's goals?
1
Yes
2
No
Approval: CFO
Will be submitted for approval:
Combine all cash flows to calculate Total Cash Flow
Will be submitted
Document the results and findings of the analysis
Please document the results and findings of the cash flow analysis. This will help provide a clear summary of the analysis for future reference.
Filing the documents with all calculations and results
Let's file all the documents related to the cash flow analysis along with the calculations and results. Provide a location or folder name where the documents will be stored.
Present the results to the board of directors
We need to present the results of the cash flow analysis to the board of directors. Provide the email addresses of the board members who should receive the presentation.
