DIRECT CASH FLOW TEMPLATE

This Direct Cash Flow Template is a financial tool commonly used by businesses to report their cash movements over a specific period, focusing on actual cash inflows and outflows. Unlike the indirect method, which adjusts net income, the direct method captures cash transactions as they occur in the company's operations, investments, and financing activities. The Operating Activities section includes cash receipts from customers and payments made to suppliers, employees, and for expenses like interest and taxes. It gives a direct view of the cash generated or used in the core business. The Investing Activities track cash flows related to the acquisition or disposal of long-term assets, like equipment or securities, while the Financing Activities involve raising or repaying capital, such as issuing debt or repurchasing stock. This template helps businesses effectively monitor liquidity by showing how cash is generated and used across different parts of the business. It aids in cash flow management, allowing stakeholders to make better decisions about operations, investments, and financing. The waterfall chart on the right illustrates the net cash movements. The green bar reflects positive cash flow from operations, while the red bar shows cash outflows from investing activities. The final gray bar summarizes the net increase or decrease in cash, offering a clear visualization of cash movement.