This approach shows cash generated from operations separate from non-operating activities and from external sources. You will need to know and understand operating cash flow, and many lenders or investors will want to see these elements separated. Another approach is to separate cash receipts from cash paid out, whether from internal or external sources.
Instructional notes follow the worksheet.
You might also find these notes helpful when preparing your income statement projection. The Annual Cash Flow plan is prepared on a monthly or quarterly basis. For most businesses, it is best to prepare a monthly plan. At the end of each month, you should compare estimates to actual cash receipts and disbursements. Cash Balance, Beginning of Period You will need to estimate what your cash balance will be at the beginning of the projection period.