The Cash Flow Statement

The Cash Flow Statement

One of the three main financial statements: Balance Sheet, Income Statement, and the Cash Flow Statement

Open Ended

Do Now: How can understanding your cash flow help you make informed financial decisions and achieve your long-term financial goals?

Complete sample personal cash flow statement in Excel

Lesson Objective

A corporate cash flow statement has three main parts: Cash Flow from Operating Activities, Cash Flow from Investing Activities and Cash from from Financing Activities.​

The Cash Flow Statement

Multiple Choice

A corporate Cash Flow Statement tracks inflows

and outflows of cash from the following activities:

• Cash from selling activities, cash from building acitivities, and cash from management activities.

• Cash from operating acitivities, cash from investing activities, and cash from financing activities

Personal Cash Flow Statement

Simplified Version

For our version of a Personal Cash Flow Statement we will summarize the three sections of a Corporate Cash Flow Statement.

Notice that our Simplified Personal Cash Flow Statement has two sections: "Sources of Income" and "Spending Categories".

Simplified Personal Cash Flow Statement

Simplified Personal Cash Flow Statement

• Cash Flow Statement: A financial statement that shows the inflows and outflows of cash.

• Importance: Provides insights into your liquidity and summarizes operating activities, and investing and financing activities.

• Key Components: Sources of Income and Spending Categories

• Analysis: Helps assess your ability to generate cash and your financial health in particular your liquidity which is how much cash is available for personal uses.

Multiple Choice

What does a Cash Flow Statement provide insights into?

• Profitability

• Liquidity

• Market share

• Employee turnover

Recreate this Personal Cash Flow Statement in Excel. Please close out this lesson and use the PDF version of this Cash Flow Statement provided in Schoology to recreate an Excel version using the same numbers and automated calculations and formulas as needed.

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Personal Cash Flow Statement