Interim Cash Flow Statement Examples

Explore practical examples of interim cash flow statements for better understanding.
By Jamie

Understanding Interim Cash Flow Statements

Interim cash flow statements are crucial financial documents that provide insights into a company’s cash inflows and outflows over a specific period, typically less than a year. They help stakeholders assess liquidity, operational efficiency, and overall financial health. Below are three diverse examples of interim cash flow statements that illustrate how different businesses may present their cash flows.

Example 1: Retail Business Cash Flow Statement

Context

A mid-sized retail company prepares an interim cash flow statement for the first quarter to evaluate its cash management during the busy holiday season.

The interim cash flow statement helps the management analyze the cash generated from operating activities, cash used in investing activities, and cash from financing activities.

Cash Flow Statement Q1 2023
Cash Flows from Operating Activities
Cash Received from Customers $250,000
Cash Paid to Suppliers ($150,000)
Cash Paid for Operating Expenses ($50,000)
Net Cash Provided by Operating Activities $50,000
Cash Flows from Investing Activities
Purchase of Equipment ($20,000)
Net Cash Used in Investing Activities ($20,000)
Cash Flows from Financing Activities
Proceeds from Loan $30,000
Net Cash Provided by Financing Activities $30,000
Net Increase in Cash $60,000
Cash at Beginning of Period $100,000
Cash at End of Period $160,000

Notes

  • This statement reflects increased cash flows due to seasonal sales.
  • The company invested in new equipment to meet growing demand.

Example 2: Technology Startup Cash Flow Statement

Context

A technology startup creates an interim cash flow statement for the first six months of operation to attract potential investors. This statement emphasizes the cash generated from operating activities and the high cash burn typical for startups.

Cash Flow Statement H1 2023
Cash Flows from Operating Activities
Cash Received from Customers $40,000
Cash Paid for Salaries ($120,000)
Cash Paid for R&D ($80,000)
Net Cash Used in Operating Activities ($160,000)
Cash Flows from Investing Activities
Purchase of Software Licenses ($10,000)
Net Cash Used in Investing Activities ($10,000)
Cash Flows from Financing Activities
Proceeds from Equity Financing $200,000
Net Cash Provided by Financing Activities $200,000
Net Increase in Cash $30,000
Cash at Beginning of Period $10,000
Cash at End of Period $40,000

Notes

  • The cash flow statement indicates a high cash burn rate typical for tech startups.
  • The influx of cash from equity financing helps sustain operations and growth.

Example 3: Manufacturing Company Cash Flow Statement

Context

A manufacturing firm prepares an interim cash flow statement for the third quarter to evaluate its cash position amidst fluctuating raw material costs and supply chain challenges.

The statement is essential for management to understand how operational changes affect cash flows.

Cash Flow Statement Q3 2023
Cash Flows from Operating Activities
Cash Received from Customers $500,000
Cash Paid to Suppliers ($300,000)
Cash Paid for Operating Expenses ($100,000)
Net Cash Provided by Operating Activities $100,000
Cash Flows from Investing Activities
Purchase of Machinery ($50,000)
Net Cash Used in Investing Activities ($50,000)
Cash Flows from Financing Activities
Loan Repayment ($20,000)
Net Cash Used in Financing Activities ($20,000)
Net Increase in Cash $30,000
Cash at Beginning of Period $70,000
Cash at End of Period $100,000

Notes

  • This example shows stable operational cash flow amidst external challenges.
  • The company is cautious with its investments and financing to maintain liquidity.