HOW IS A CASH FLOW STATEMENT PREPARED?
• The cash flow statement is displayed in the following format. You may add different receipts or disbursements which are appropriate for your business. • The cash receipts for each month of the first year should be provided. The heading notes the date of the end of the period covered by the cash flow statement. ABC COMPANY Cash Flow Forecast For the Year Ended December 31,2009 Opening Cash BalanceJANFEBMARCH RECEIPTS Cash Received from Sales* Cash from Receivables Collected Loan Proceeds** Personal Investment Sales of Assets (specify others…) TOTAL RECEIPTS DISBURSEMENTS Accounts Payable*** Supplies Rent Utilities Purchase Fixed Assets Insurance Professional Fees Advertising & Promotion Wages Salaries Long Term Debt Taxes (specify others…) TOTAL DISBURSEMENTS SURPLUS (DEFICIT) * Method for recording sales Some sales will be made for cash while others may be made on credit. Because sales made on credit will not result in the receipt of cash until a later date, they must not be reco
