Below we have briefly explained the nature of first few line items of cash flow forecast template on how to forecast each of those activities. Each line item is classified into operating, investing, and financing activity so that you can establish a link between this template and traditional cash flow statement.
Template Cell Ref: A9
Item description: Cash sales
What & where to report in template: Projected cash sales for each month from cells C9 to N9.
Source: Projected / budgeted income statement or actual sales for past months adjusted with anticipated trend
Activity classification: Operating
Template Cell Ref: A10
Item description: Cash collected agains credit sales
What & where to report in template: Cash collections against credit sales or accounts receivable from cells C10 to N10.
Source: Expected cash collection from credit sales as per credit terms
Activity classification: Operating
Template Cell Ref: A11
Item description: Interest received
What & where to report in template: Expected interest income on savings account/short term deposits or on loans & advances from cells C11 to N11.
Source: Calculate interest income from closing bank balance in projected cash flow statement and loan repayment schedules, if you have given out any loans
Activity classification: Operating / Investing (once chosen must be applied consistently)
Template Cell Ref: A12
Item description: Proceeds from sale of assets
What & where to report in template: Any amount that is expected to be realised from sale of business assets from cells C12 to N12
Source: Projected/budgeted financial statements / any existing plan of sale
Activity classification: Investing
Template Cell Ref: A13
Item description: Proceeds from sale of investments
What & where to report in template: Any proceeds expected from realization of investments from cells C13 to N13
Source: Projected/budgeted financial statements / any existing plan of sale
Activity classification: Investing
Download explanation of all line items of cash flow forecast template.
