Cash Flow Calculator

Forecasting cash flows must be the top priority for any business plan. This shows how the two most important cash flow forecasts are calculated.

Operating Cash Flow and Net Revenue

Operating cash flow represents cash forecast to be generated exclusively by core trading operations.

Everything alse such as fixed asset acquisition, taxes and dividends are added / subtracted to arrive ar net cash flow. Both operating and net cash flow forecasts are produced by Figurewizard.

Operating cash flow starts with operating revenue which is essentially the net profit less depreciation (as no cash is involved) plus tax and interest charges as these do not arise from trading operations.

Operating Cash Flow and Working Capital

The next step is to add the difference between the forecast year's current assets and liabilities. These relate exclusively to trading as follows:

Current assets    
Cash in hand
Accounts Receivable
Stock / Inventory

Current Liabilities
Trade Creditors
Sundry Creditors
VAT

Adding these differences to operating revenue returns the operating cash flow forecast.

Monthly Bank Balances and Undrawn Cash Facilities

This cash flow forecast is also automatically calculated and applied by Figurewizard.

It starts with the monthly bank balance B/Fwd plus a breakdown of all income and expenditure. The value of undrawn external financing facilities such as the bank overdraft and  available cash from factoring or invoice discounting if selected are added to return the actual value of cash available to be business in any given month.

Testing Figurewizard Forecasts

Visitors to this site are free to test Figurewizard online by selecting "create a forecast" to take control of the sample forecast. This enables the entries that make up the sample forecast to be changed, which in turn will change the profit and loss, balance sheet and cash flow forecasts.

To view working examples of all of the cash flow forecasts Figurewizard produces, follow the links below.

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