This hybrid builder assembles a single-period statement of cash flows using the indirect method. Enter beginning and ending working-capital balances from your comparative balance sheet, then add net income, depreciation, and the investing and financing cash transactions that balances cannot reveal.
How to use this calculator
- Optionally label the entity and reporting period, then enter beginning cash and optional balance-sheet ending cash.
- Enter net income, depreciation and amortization, any disposal gain or loss, and other operating adjustments.
- Enter beginning and ending accounts receivable, inventory, and accounts payable. Leave a pair blank if that account is not used. The Builder calculates the change and cash-flow effect.
- Enter capital expenditures and proceeds from asset sales. Do not infer these from PP&E balances.
- Enter debt issued, debt repaid, and dividends paid. Do not infer these from net debt or retained earnings.
- Review the statement, reconciliation status, and interpretation before printing or sharing.
Formula
Working-capital changes are derived as ending minus beginning. AR and inventory increases reduce operating cash; AP increases increase operating cash. Indirect method: CFO = Net income + Depreciation − Gain on disposal − ΔAR − ΔInventory + ΔAP + Other operating. CFI = −CapEx + Proceeds from asset sales. CFF = Debt issued − Debt repaid − Dividends paid. Calculated ending cash = Beginning cash + CFO + CFI + CFF.
Example
If accounts receivable rises from $50,000 to $60,000, the change is +$10,000 and the operating cash-flow effect is ($10,000). Combined with $100,000 net income, $20,000 depreciation, a $5,000 inventory increase, an $8,000 payable increase, and $30,000 capex, CFO is $113,000 and CFI is ($30,000) before financing items.
Frequently asked questions
Do I enter the cash-flow adjustment or the balance-sheet amounts?
Enter beginning and ending balances for receivables, inventory, and payables. The Builder derives the change and the cash-flow effect. You do not enter ΔAR, ΔInventory, or ΔAP yourself.
Why can’t I enter beginning and ending PP&E instead of capex?
PP&E balances also move for depreciation, disposals, impairment, and other non-cash items. Capex and sale proceeds must be entered as cash transactions.
What if only one side of a working-capital pair is known?
Enter both beginning and ending, or leave both blank. The Builder will not assume the missing side is zero.
What does Does Not Reconcile mean?
Calculated ending cash differs from balance-sheet ending cash by more than one cent. Review missing cash transactions or non-cash adjustments. Even a small difference is reported as Does Not Reconcile.