cash flow direct method key points and template

1. CASH FLOW DIRECT METHOD
Cash flow direct method template

2. CASH FLOW STATEMENT DIRECT METHOD
The direct method of presenting the statement of cash flows shows the
specific cash flows associated with items that affect cash flow.
Items that typically are including:
 Cash collected from customers with different payment methods
 Cash paid to suppliers with different methods
 Cash paid to employees
 Workers and Income taxes paid
 Interest and dividends received
 Interest paid

3. CASH FLOW STATEMENT DIRECT METHOD
Here below the template:
Month :
Curr. :
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
ACT FCST FCST FCST FCST FCST FCST FCST FCST FCST FCST FCST
Bank receipts portfolio 100 100 100 100 400 7,43%
Unsolved bank receipts (10) (10) (10) (30) -0,56%
Cash-in from bank receipts 100 90 90 90 0 0 0 0 0 0 0 0 370 6,88%
Wire transfers local country external clients 1.000 1.000 1.000 1.000 4.000 74,35%
Wire transfers foreign countries external clients 200 200 200 600 11,15%
Wire transfer from external clients 1.000 1.200 1.200 1.200 0 0 0 0 0 0 0 0 4.600 85,50%
Cash-in from factoring 100 100 100 100 400 7,43%
Total cash-in from external clients 1.200 1.390 1.390 1.390 0 0 0 0 0 0 0 0 5.370 99,81%
Intercompany cash-in (Bank Transfer) 0 0,00%
Intercompany cash-out (Bank Transfer) 0 0,00%
Net Bank transfer Cash flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0,00%
Intercompany cash pooling cash-in 0 0,00%
Intercompany cash pooling cash-out 0 0,00%
Net Cash Pooling cash flow 0 0 0 0 0 0 0 0 0 0 0 0 0 0,00%
A1) Total operating cash-in 1.200 1.390 1.390 1.390 0 0 0 0 0 0 0 0 5.370 99,81%
Other cash-in 10 10 0,19%
A) Total cash-in 1.210 1.390 1.390 1.390 0 0 0 0 0 0 0 0 5.380 100,00%
External local suppliers bank receipts (800) (800) (800) (800) (3.200) 70,48%
External local suppliers w ire transfers (200) (200) (200) (200) (800) 17,62%
Total cash-out external local suppliers (1.000) (1.000) (1.000) (1.000) 0 0 0 0 0 0 0 0 (4.000) 88,11%
External foreign suppliers w ire transfers 0 0,00%
Total cash-out external suppliers (1.000) (1.000) (1.000) (1.000) 0 0 0 0 0 0 0 0 (4.000) 88,11%
Other cash-out 0 0,00%
Total cash-out operating activities (1.000) (1.000) (1.000) (1.000) 0 0 0 0 0 0 0 0 (4.000) 88,11%
Workers taxes and duties (100) (100) (100) (100) (400) 8,81%
Payrol payments (30) (30) (30) (30) (120) 2,64%
Total taxes and payroll (130) (130) (130) (130) 0 0 0 0 0 0 0 0 (520) 11,45%
Agents and Professionals fees 0 0,00%
Other taxes 0 0,00%
B1) Total operating cash-out (1.130) (1.130) (1.130) (1.130) 0 0 0 0 0 0 0 0 (4.520) 99,56%
C1) = (A1 + B1) -> Operating Cash Flow 80 260 260 260 0 0 0 0 0 0 0 0 860 -18,94%
Cash-in from financial income 0 0,00%
Cash-out from interest and bank charges (5) (5) (5) (5) (20) 0,44%
Net cash-flow from financial activities (5) (5) (5) (5) 0 0 0 0 0 0 0 0 (20) 0,44%
Cash-in from financings Loan 0 0,00%
Cash-out from financings Loan 0 0,00%
Intercompany dividends cash-in 0 0,00%
Intercompany dividends cash-out 0 0,00%
Net Cash from Intercompany Dividend 0 0 0 0 0 0 0 0 0 0 0 0 0 0,00%
B) Total cash-out (1.135) (1.135) (1.135) (1.135) 0 0 0 0 0 0 0 0 (4.540) 100,00%
C) = (A + B) Total period net flow 75 255 255 255 0 0 0 0 0 0 0 0 840
Starting balance 2.000 2.075 2.330 2.585 2.840 2.840 2.840 2.840 2.840 2.840 2.840 2.840
Total period net flow 75 255 255 255 0 0 0 0 0 0 0 0 840
D) Ending Balance 2.075 2.330 2.585 2.840 2.840 2.840 2.840 2.840 2.840 2.840 2.840 2.840
Description
TOTAL
YEAR
RATIO
company name DETAIL OF CASH FLOW YEAR 2 0 1 6
jan-16
€ 000

4. CASH FLOW STATEMENT DIRECT METHOD
 The advantage of the direct method over the indirect method is that it
reveals operating cash receipts and payments.
 The standard-setting bodies encourage the use of the direct method,
but it is rarely used, for the excellent reason that the information in it is
difficult to assemble; companies simply do not collect and store
information in the way required for this format.
 Using the direct method may require that the chart of accounts be
restructured in order to collect different types of information. Instead,
they use the indirect method, which can be more easily derived from
existing accounting reports.