Cash Flow Statement
Build a custom Cash Flow Statement with categorized transactions.
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The Ultimate Guide to Cash Flow Statements
Welcome to the EasyToolz Cash Flow Statement Calculator. While profit is important, cash is king. Understanding how cash moves in and out of your business is vital for survival.
What is a Cash Flow Statement?
A cash flow statement is one of the three core financial statements. It tracks the exact amount of cash and cash equivalents entering and leaving a company. Unlike the income statement (which uses accrual accounting), the cash flow statement only cares about actual money in the bank.
The Three Categories of Cash Flow
Our tool strictly organizes your cash into standard accounting categories:
- Operating Activities: Cash generated from normal business operations (e.g., customer payments, inventory purchases).
- Investing Activities: Cash spent on or generated from long-term assets (e.g., buying equipment, selling property).
- Financing Activities: Cash related to debt and equity (e.g., taking a loan, paying dividends).
How to Use This Tool
Simply enter your inflows (positive numbers) and outflows (negative numbers) into the respective categories. The calculator will aggregate the data and show your Net Increase/Decrease in Cash.
Frequently Asked Questions
Why can a profitable company still go bankrupt?
If a company makes $1M in sales (profit) but the customers have 90 days to pay, the company might run out of actual cash to pay its employees in the meantime. This is why cash flow analysis is critical.