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Worked example
Real numbers from this tool, line by line.
A US CPA-firm staff accountant drafting a client's cash flow statement in Excel can miss trial-balance cash by $40,000 from one equipment note, and this template shows the gap before the manager does. Here is the worked example, computed by the template's own formulas:
| Line | Correct (ASC 230) | Financed part left in investing |
|---|---|---|
| Net cash from operating activities | $161,400 | $161,400 |
| Purchases of fixed assets paid in cash | $55,000 | $95,000 |
| Net cash from investing activities | -$40,000 | -$80,000 |
| Net cash from financing activities | -$50,000 | -$50,000 |
| Net change in cash | $71,400 | $31,400 |
| Ending cash per statement | $156,400 | $116,400 |
| Ending cash per trial balance | $156,400 | $156,400 |
| Tie-out difference | $0 | $40,000 |
The inputs are the client's own figures: beginning cash $85,000, ending cash per trial balance $156,400, net income $142,000, depreciation $38,500, a $6,000 gain on a disposal, a $24,300 increase in receivables, inventory and prepaids, an $11,200 increase in payables and accruals, $95,000 of fixed-asset additions of which $40,000 was financed by a note, $15,000 of sale proceeds, net borrowings of -$20,000 and $30,000 of owner distributions.
Why the right column misses
The fixed-asset rollforward says additions were $95,000. It is tempting to type that straight into investing. But $40,000 of that equipment came with a note payable, and no cash left the bank for it. ASC 230-10-50-3 says investing and financing activities that change recognized assets or liabilities without a cash receipt or payment are disclosed, not run through the statement. Leave the $40,000 inside investing and the statement ends at $116,400 while the trial balance says $156,400. The difference is exactly the financed amount.
The second trap: the gain on disposal
The $6,000 gain is already inside net income, and the $15,000 proceeds belong in investing. If the gain is not backed out of operating, operating cash reads $167,400 instead of $161,400 and the statement overshoots trial-balance cash by $6,000. The template subtracts the gain in operating (enter a loss as a negative number and it is added back) and puts the proceeds in investing.
What the template does
You type twelve figures from the trial balance, prior-year balance sheet and fixed-asset rollforward. The page returns operating cash (indirect method), cash capex with financed additions removed, investing and financing totals, ending cash, and the tie-out difference to trial-balance cash. Nothing is uploaded.
Free and paid
The statement and the tie-out line are free on the page, from your own numbers, with nothing held back. The paid file is the .xlsx workpaper: the same live formulas in a file you can tick-mark, keep in the engagement binder and roll forward next year, plus an Error checks tab that shows the noncash disclosure figure ($40,000 in the example), the investing total if the financed part stayed in (-$80,000), the operating total if the gain were left in ($167,400) and free cash flow ($106,400). It is a one-time payment, not a subscription.
The yardstick
The BLS Occupational Outlook Handbook gives the May 2024 median pay of accountants and auditors as $39.27 per hour. A returned draft costs that hour twice: preparer and reviewer.
Type your own trial balance figures into the free page and read the tie-out line before the draft goes to review.
15 seconds — what it actually does
Questions people ask
What does this cash flow statement template do?
It turns twelve figures from a client's trial balance, prior-year balance sheet and fixed-asset rollforward into a US GAAP statement of cash flows using the indirect method. It shows operating, investing and financing totals, computes ending cash, and prints the difference to trial-balance cash so you know at once whether the statement ties.
Who is it for?
Audit, review and compilation staff at US CPA firms who draft a private client's statement of cash flows in a spreadsheet because their audit software does not build one. It also suits controllers preparing year-end statements for a lender or an outside accountant who will check the cash tie-out.
Why not use a free template or ask a chatbot?
Free templates give the indirect-method layout, but they leave financed equipment inside investing. ASC 230-10-50-3 says equipment bought with a note or lease is a noncash activity to disclose, not a cash outflow. Leave it in and the statement misses trial-balance cash by exactly that amount. This template removes it and shows the tie-out line.
What is free and what is paid?
The whole statement is free on the page: type your own twelve figures and read operating, investing and financing totals, ending cash and the tie-out difference. The paid file is the .xlsx workpaper with live formulas to tick-mark, file in the binder and roll forward next year, plus an Error checks tab. You pay once; it is not a subscription.
How does the cost compare with doing it by hand?
The BLS Occupational Outlook Handbook puts the May 2024 median pay for accountants and auditors at $39.27 per hour. One hour spent hunting an unexplained cash difference costs more than this workpaper, and a statement that does not tie usually costs that hour twice: once for the preparer and once for the reviewer.
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