SYSTEM MAINTENANCE
Sunday, May 19, 2013
12:30 a.m. until 4:30 a.m.
Due to system maintenance, Online Banking and Mobile Banking will be unavailable on Sunday, May 19, 2013 between the hours of 12:30 a.m. and 4:30 a.m. Thank you.
While an income statement can present a true picture of the operating results of your business, understanding what is happening with your cash flow is also critical and can help you with the day-to-day operation of your business. Managing your business without adequate cash flow to meet operating needs and to take advantage of marketplace opportunities can make life miserable.
Most businesses prepare Cash Flow Statements at least annually and many prepare one each quarter. Here is a format that you may find helpful. You might want to start with one for the prior year to become familiar with the process and then start doing quarterly projections of your cash flow.
After you have prepared the statement below or one similar to it, you can then focus on each of the line items and begin the process of improving them as you see appropriate.
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Line # |
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Prior year |
Current year |
$$$ Increase/ |
%'age |
Comments for lines |
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Year ending |
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Enter the year |
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Sources and Uses of Cash |
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1 |
Net Income |
$ |
$ |
$ |
% |
Enter your income |
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Plus Non-Cash Expenses Included in Net Income |
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2 |
Depreciation |
$ |
$ |
$ |
% |
Enter as a positive. (Depreciation is a non cash expense) |
|
3 |
Net change in accounts receivable |
$ |
$ |
$ |
% |
Increases for the year are entered as negatives and decreases are entered as positives |
|
4 |
Net change in accounts payable |
$ |
$ |
$ |
% |
Increases for the year are entered as positives and decreases are entered as negatives |
|
5 |
Net change in inventory |
$ |
$ |
$ |
% |
Increases are entered as negatives and decreases are entered as positives |
|
6 |
Net change in other accrued items |
$ |
$ |
$ |
% |
Increases in other accrued assets are entered as negatives and increases in other accrued liabilities are entered as positives |
|
7 |
Net Cash Provided by Operating Activities |
$ |
$ |
$ |
% |
Add Lines 1 through 6 |
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Cash Flow From Investing Activities |
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8 |
Purchase of capital assets |
$ |
$ |
$ |
% |
Enter as a negative |
|
9 |
Sales of capital assets |
$ |
$ |
$ |
% |
Enter as a positive |
|
10 |
Loans given by you |
$ |
$ |
$ |
% |
Enter as a negative |
|
11 |
Loans repaid to you |
$ |
$ |
$ |
% |
Enter as a positive |
|
12 |
Net Cash From Investment Activities |
$ |
$ |
$ |
% |
Add Lines 8 through 11 |
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Cash Flows From Financing Activities |
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13 |
Debt reduction |
$ |
$ |
$ |
% |
Enter as a negative |
|
14 |
Proceeds from borrowing |
$ |
$ |
$ |
% |
Enter as a positive |
|
15 |
Proceeds from sale of equity |
$ |
$ |
$ |
% |
Enter as a positive |
|
16 |
Dividends |
$ |
$ |
$ |
% |
Enter as a negative |
|
17 |
Net Cash from Financing Activities |
$ |
$ |
$ |
% |
Add Lines 14 through 17 |
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18 |
Net Change in Cash |
$ |
$ |
$ |
% |
Add Lines 7, 12 and 17 |