Question

I have almost completed an excel project in which I created a proforma budget. I am stuck on what to put on the line item "Cash flow". I am including a screen shot of the portion of the spreadsheet that includes this line item. Any information would be appreciated.

File Home Insert Page Layout Formulas Data Review View Help Share Comments A32 L E 775.00 850.00 900.00 4640.00 7166.67 559.93 67663.04 F 775.00 850.00 900.00 4640.00 7166.67 559.93 67663.04 G 775.00 850.00 900.00 4640.00 7166.67 559.93 67663.04 H 775.00 850.00 900.00 4640.00 7166.67 559.93 67663.04 775.00 850.00 900.00 4640.00 7166.67 559.93 67663.04 J 775.00 850.00 900.00 4640.00 7166.67 559.93 67663.04 K 775.00 850.00 900.00 4640.00 7166.67 559.93 67663.04 85 90 464 716 55 676€ A B с D 19 Electricity 775.00 775.00 775.00 20 Insurance 850.00 850.00 850.00 21 Advertising 900.00 900.00 900.00 22 Hourly Wages 4640.00 4640.00 4640.00 23 Salaries 7166.67 7166.67 7166.67 24 Loan Payment 559.93 559.93 559.93 25 Total Expenses 67663.04 67663.04 67663.04 26 27 Income Before Tax 39914.76 39914.76 39914.76 28 Tax 9579.54 9579.54 9579.54 29 Net Income 30335.22 30335.22 30335.22 30 Cash Flow 31 32 22 Cash ProForma Assumptions Startup Cost 39914.76 9579.54 30335.22 39914.76 9579.54 30335.22 39914.76 9579.54 30335.22 39914.76 9579.54 30335.22 39914.76 9579.54 30335.22 39914.76 9579.54 30335.22 39914.76 9579.54 30335.22 3991 957 3033 Cost Of Goods Sold Shee ...

Answer 1

The amount of cash or cash-equivalent which the company receives or gives out by the way of payment(s) to creditors is known as cash flow.

Here, if all your expenses had already paid by you then sum of all the expenses paid in your net cash outflow.

But if any of expenses given are accrued to pay then that accured expenses should not be added in cash outflow as u havn't paid that yet.

similarlu in case of income if you have received all the income in cash then add all those income that will be your cash inflow.

But if any of income is accrued that means that's due but not yet received then you don have to consider that accrued amount while calculating your cash inflow.

In the given spread sheet, if you have all the cash transaction only and not any income/expense is accrued then your net income will be your net cash flow i.e (cash inflow-cash outflow)