Cash flow statement example

Check out this example of a cash flow statement to learn how they work. See what numbers go where, what maths takes place, and how to read the results.

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Example cash flow statement

A cash flow statement is divided into four sections. We'll explain each section in detail, but let's start with the overall layout.

An example cash flow statement shows money coming and going from operations, money coming and going from investments (buying or selling assets), and money coming and going from financing. These sources are totalled to show a net increase or decrease in cash.

Get more on each of the four sections below.

Cash flow from operations

Show the cash coming in from sales. And show the cash that you spent running the business. Total these amounts to show the overall effect of operations on cash flow.

Cash flow from operations shows money coming in from sales, minus money going out on inventory, payroll, operations, loan interest, and tax.

Cash flow from investments

Show cash spent on big items like real estate and equipment. Also show money received from selling those same types of things. Total these amounts to show the overall effect of investments on cash flow (it will often be a negative number).

Cash flow from investments shows money received from the sale of vehicles, equipment and land minus money spent on those same types of things.

Cash flow from financing

Show cash received from lenders and investors, and amounts that were paid back to them. Also show cash put in, or taken out, by the owner. Total these amounts to figure out the overall effect of financing on cash flow.

Cash flow from financing shows cash received from investors and lenders, minus cash paid back to them as repayments or dividends. It also makes adjustments for money put in or taken out by the owner.

Net cash movement

Bring everything together to show the overall changes in your cash position.

Net cash movement adds cash flow from operations, investments and financing. This number is then added to the starting balance to show how much cash the business had at the end of the period.

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What a cash flow statement tells you

A cash flow statement shows how much money you have to spend, and where that money comes from. If there’s not much cash left, it can help you see where it all went.

To do this, the cash flow statement combines information from your:

  • profit and loss – including sales revenue and business expenses.

  • balance sheet – including owner’s drawings and repayment of loan principal (your P&L only shows interest paid).

As you can see from our example cash flow statement, these reports also provide a handy summary of taxes and interest paid, which can be useful numbers to have on hand.