Cash Flow Statement (with Income Statement & Balance Sheet)

    Creating a Cash Flow is challenging, but often this is often, really what the Finance Department want to see.

    It is challenging because, usually, the General Ledger / Chart of Accounts doesn't provide the details necessary to produce the Cash Flow statement.

     

    Cash Flow Methodology

    There are two methods of creating a cash flow, the "direct method" or the "indirect method".  The majority of financial statements use the "indirect method":

     

    Indirect method
    Profit before interest and income taxes
    Add back depreciation
    Add back amortization of goodwill
    Increase in receivables
    Decrease in inventories
    Increase in trade payables
    Interest expense
    Less Interest accrued but not yet paid
    Interest paid
    Income tax paid
    Net cash from operating activities

     

    You will require to determine which General Ledger Accounts are grouped into the various Cash Flow Movements.  Some will be from within the "Income Statement" and some are "Balance Sheet" movements.


    Here is a simplified example of how to create a Cash Flow statement, with integrated the Income Statement (Profit & Loss) and Balance Sheet.

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    Nick Scott.

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    Discover more on GitHub: GitHub - nicholasscott72/Qlik-DimensionalModelling: A simple development methodology for QlikView applications, leveragi…