[bmun]

I am preparing a cash flow statement and do not understand how to come up with the ending cash balance. This is what I have so far:

Cash Received 2008 2009 2010 2011
Cash From Operations:
Cash Sales $20,895.00 $39,025.00 $55,200.00 $78,885.00
Cash from Receivables $0 $0 $0 $0
Subtotal Cash From Operations $20,895.00 $39,025.00 $55,200.00 $78,885.00

Additional Cash Received
Sales tax, Vat, HST/GST Received $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0
New other Liabilities (interest free) $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0
New Investment Received $0 $0 $0 $0
Subtotal Cash Received $20,895.00 $39,025.00 $55,200.00 $78,885.00

Expenditures
Expenditures from Operations:
Cash Spending $21,800.00 $21,800.00 $32,200.00 $42,600.00
Payment of Accounts Receivable $26,333.00 $33,060.00 $45,999.00 $54,005.00
Subtotal Spent on Operations $48,133.00 $54,860.00 $78,199.00 $96,605.00
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0
Principal Repayment of Current Borrowing$0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0
Long-term Liabilities Principal Repayment $8,600.00 $9,100.00 $9,850.00 $10,255.00
Purchase other Current Assets $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0
Dividends $0 $0 $0 $0
Subtotal Cash Spent $56,733.00 $63,960.00 $88,049.00 $106,860.00

Net Cash Flow ($35,838.00) ($24,935.00) ($32,849.00) ($27,975.00)
Cash Balance

[jeffinnport]

After the line that shows net cash flow you need a line that shows cash at beginning of the year. So at the beginning of 2008 you must have had cash on hand. You then add to that number your cash flow for the year and you end up with cash balance, wish also then gets entered for the next year as cash at beginning of year

For example (my numbers)

2008 2009

Cash flow 10,000 12,000
Cash at start of year 5,000 15,000
Cash balance 15,000 27,000

You're showing an expense item for principle repayment, so you must have had a loan. If that was in a lump sum, and it was in hand at the beginning of 2008, then that's your starting cash balance.

A couple of other observations:

You show cash from sales, but no cash from receivables. Are you always getting paid the day you make a sale? If not, then you need to factor in your receivable time.

You how payment of account receivable under expenses. Don't you mean accounts payable?

Assuming that the sum of the loan principle repayments was your starting capital, you'll be out money by the end of this year