Cash Flow Annual Sample

Excel Skills | Annual Cash Flow Projection Template
Instructions
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This template enables users to prepare annual cash flow projections for any user defined five year period. The template
includes an annual income statement, cash flow statement and balance sheet. The cash flow projections are based on
turnover, gross profit and expense values that are entered by the user as well as a number of default assumptions which are
used to create an automated balance sheet. These assumptions include opening balance sheet balances, working capita
ratios, payroll accruals, sales tax, income tax, dividends and loans. The annual reporting periods are based on any use
defined start date.
Note: The templates section of our website also includes a Monthly Cash Flow template and a Forecast vs Actual Cash Flow
template which enable users to compile a 36 month cash flow forecast and to compare the forecasted balances to actua
account balances.
The following sheets are included in this template:

Assumptions - this sheet includes the default assumptions on which the annual cash flow projections are based.
IncState - this sheet includes a detailed annual income statement for 5 annual periods. All the rows that are highlighted in
yellow in column A require user input in column C and the codes in column A are mainly used in the sales tax, receivables &
payables calculations. The rows that do not contain yellow highlighting in column A contain formulas and are therefore
calculated automatically.
CashFlow - the annual cash flow statement is automatically calculated and requires no user input.
BalanceSheet - all balance sheet calculations are based on the template assumptions and the income statement & cash
flow statement calculations. No user input is therefore required on this sheet.
Loans1 to Loans3 & Leases - these sheets include detailed amortization tables which are used to calculate the interes
charges and capital repayment amounts that are included on the income statement and cash flow statement. Each shee
provides for a different set of loan repayment terms to be specified.
Note: If you do not want to include any of the line items that are listed on the income statement, cash flow statement o
balance sheet, we recommend hiding these items instead of deleting them. If you delete items which are used in othe
calculations, these calculations will result in errors which you then need to fix or remove.
Setup
Business Name & Reporting Periods
The business name and the start date for the cash flow projections need to be entered at the top of the Assumptions sheet
The business name is included as a heading on all the sheets and the reporting periods which are included in the template
are determined based on the start date that is specified. This date is used as the first annual period and the 4 subsequen
annual periods are added to form the 5 year projection period.
User Input
The income statement only requires user input in column C where there is yellow highlighting in column A. The year 2 to 5
calculations are automated (except for gross profit percentages) and based on the user input on the Assumptions sheet
Rows without yellow highlighting are automatically calculated. The cash flow statement and balance sheet requires no use
input and all calculations are automated.
Income Statement
All annual income statement projections need to be entered exclusive of any sales tax that may be applicable.
Turnover & Gross Profits
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Instructions
Annual turnover values need to be entered on the IncState sheet in column C for the first year. The projected annual gross
profit percentages also need to be entered in column C on this sheet and are used in order to calculate the gross profi
values. The annual cost of sales projections are calculated by simply deducting the gross profit values from the annua
turnover values.
The year 2 to 5 turnover amounts are calculated based on the totals for the first year and adjusted by the annual turnove
growth rates that are specified on the Assumptions sheet. Gross profit percentages for each turnover line need to be entered
on the IncState sheet. Gross profit values and cost of sales totals are calculated automatically.
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Instructions
The template includes two default lines in each of these sections - one for a typical product based item and one for a typica
service based item. The template can therefore be used for both service and trade based businesses. There are no cost o
sales and gross profit values in service based businesses and a gross profit percentage of 100% can therefore be specified
You can also hide the cost of sales and gross profit sections if you do not want to include them in your cash flow projections.
Note: You can insert as many additional line items as required by inserting the required number of items in each section and
then entering the appropriate values where user input is required or copying the formulas from one of the existing lines. We
recommend inserting additional line items between the two existing default line items.
Note: The codes in column A are used in the sales tax and trade receivables calculations. The first two characters represen
the sales tax code and the last two characters represent the payment status. Refer to the Balance Sheet - Sales Tax and
Balance Sheet - Trade Receivables sections for more information on these codes.
Other Income
Annual projections of other income should be entered in this row. Note that other income may consist of items like interest o
dividends received and this line item is therefore not included in trade receivables and sales tax calculations. If you want to
include other income in the trade receivables or sales tax calculations, you need to add the income to the Turnover section
as an additional line item.
The year 2 to 5 totals for other income are calculated by applying the annual turnover growth percentages on the
Assumptions sheet to the previous year's total.
Operating Expenses
All the annual operating expense projections need to be entered in the operating expenses section of the income statement
The template contains 22 default operating expense line items but you can add as many additional items as required o
delete the line items that you do not need. When adding additional line items, remember to copy the formulas in the year 2 to
5 columns from one of the existing line items.
The year 2 to 5 totals for operating expenses are calculated by applying the annual expense inflation percentages on the
Assumptions sheet to the previous year's total.
Note: The codes in column A are used in the sales tax and trade payables calculations. The first two characters represen
Balance Sheet - Trade Payables sections for more information on these codes.
Staff Costs
The annual staff cost projections for the first year need to be entered in column C of the staff costs section of the income
statement. The template contains 2 default staff cost line items but you can add as many additional items as required o
delete the line items that you do not need.
The year 2 to 5 totals for staff costs are calculated by applying the annual expense inflation percentages on the Assumptions
sheet to the previous year's total.
Note: The codes in column A are used in the sales tax and trade payables calculations. The first two characters represen
Balance Sheet - Trade Payables sections for more information on these codes.
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Instructions
Note: Staff costs have been included in a separate section on the income statement in order to be able to calculate payrol
accruals. If you do not need to include payroll accruals in your cash flow projections, we recommend entering nil values and
hiding these rows. If you delete the section, some of the payroll accrual formulas may result in errors and you therefore may
need to delete them as well.
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Instructions
Depreciation & Amortization
Annual projections for depreciation and amortization charges need to be calculated independently of the template and
included in this section. We unfortunately cannot include default depreciation or amortization calculations because some
businesses may have very different asset bases than others with existing assets which may already have been depreciated
over a number of years. Any calculation which is based on a percentage of the balance sheet asset value may therefore no
be accurate.
If you already have a sheet which is used for depreciation or amortization calculations, you can include it in this template and
add formulas in the depreciation & amortization section of the income statement to include your calculations in the
appropriate line items.
The annual depreciation & amortization charges for the first year need to be included on the IncState sheet and the totals fo
year 2 to 5 need to be included on the Assumptions sheet.
We also realize that some users may want to include depreciation and amortization as part of their operating expenses. We
have therefore provided for this in that the depreciation and amortization calculations on the cash flow statement are based
on the default code which is included in column A. You can therefore enter nil values in the depreciation & amortization
section on the income statement, hide the section and include these line items in the operating expenses section and as long
as you also include the default codes in column A, the cash flow statement values for depreciation and amortization will be
calculated correctly.
Interest Paid
All interest paid calculations are automated and based on the amortization tables on the Loans1 to Loans3 and Leases
sheets. The template accommodates the inclusion of loans & leases based on four different sets of loan repayment terms
which need to be specified on the Assumptions sheet.
Opening loan balances are based on the balance sheet opening balances section on the Assumptions sheet and additiona
loan amounts can be entered in the first balance sheet section on the Assumptions sheet.
You do not need to use all four loan amortization sheets - if you only need to include loans based on one set of repaymen
terms, you can delete the other loan amortization sheets, delete the other interest paid rows on the income statement, delete
the other proceeds from loans rows on the cash flow statement, delete the other repayment of loans rows on the cash flow
statement and delete the other loan balances from the balance sheet.
The template provides for four sets of loan repayment terms - the same amortization table can basically be used for all loans
with the same repayment terms by adding additional loan amounts as proceeds to the Assumptions sheet in order to add
new loans to the appropriate amortization table.
If you need to add more than four sets of loan repayment terms, you will need to copy one of the amortization sheets
change it to reflect the appropriate loan terms and then change the formulas in the amortization table to be based on the
correct loan repayment terms at the top of the sheet. This means that you need to add another set of repayment terms to the
Assumptions sheet and link the fields at the top of the new amortization table to the appropriate cells on the Assumptions
sheet.
If there is an opening balance for the required additional loan terms, you need to include a new code in the balance shee
opening balances section on the Assumptions sheet and base the opening balance calculation in the first period of the
amortization schedule on this code. You also need to add new rows to the interest paid section on the income statement, the
loan proceeds section on the Assumptions sheet and cash flow statement, the loan repayment section on the cash flow
statement and the loan balances section on the balance sheet. The appropriate formulas can be copied from one of the
existing items and the sheet reference in the copied formula can then just be replaced by the sheet name of the new
amortization table that you've added.
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Instructions
Taxation
The taxation line item on the income statement is automatically calculated based on the profit before tax and the income tax
assumptions which are specified on the Assumptions sheet. If you do not want to include income tax in the cash flow
projections, simply enter an income tax rate of 0%. This will result in no income tax being calculated.
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Instructions
If you do want to include income tax calculations, the appropriate income tax percentage needs to be entered in the Income
Tax section on the Assumptions sheet. You can also enter a value for an assessed loss (as a positive value) which may have
been carried over from a previous tax year which would result in income tax only being calculated after profits exceed the
value of the assessed loss.
You also need to specify the payment frequency in months and the first payment month in which a payment needs to be
included. The template automatically provides for income tax based on what is due and includes the income statemen
amount and a provision for taxation on the balance sheet. The payment frequency and month of payment assumptions are
then used to determine when the income tax liability will be settled which will result in the appropriate cash outflow being
recorded on the cash flow statement and the provision for taxation being reduced.
The template can accommodate income tax calculations based on current and subsequent month payments. If you selec
the Current option, the income tax payment amount will be calculated based on all amounts that have accrued up to and
including the month of payment. If you select the Subsequent option, the income tax payment amount will only be calculated
based on all amounts which have accrued up to the previous month end.
Example: If you select the Current option in the Income Tax section of the Assumptions sheet, all income tax amounts up to
and including the current month will be included in the income tax payment amount. This means that the provision fo
taxation at the end of the particular month will be nil. The Current setting is therefore usually appropriate for provisiona
taxpayers.
Example: If you select the Subsequent option, all amounts up to and including the previous month end will be included in the
income tax payment amount. The provision for taxation balance on the balance sheet will therefore not be nil at the end o
the month of payment and include the current month's income tax charge.
Dividends
The template also includes automated dividends calculations. If you do not want to include any dividends in your cash flow
projections, you can simply specify a dividend percentage of zero percent.
If you want to include dividend calculations, you need to specify a dividend percentage which will be applied to the profit fo
the period in order to calculate the dividend value. You also need to specify the frequency in months of dividend payments
and the first payment month. The frequency of dividends determines when the dividends are included on the income
statement and the first month of payment determines when the dividend payment is included on the cash flow statemen
(only has an effect if the dividend payment option is Subsequent).
You can also specify whether the dividend is paid in the month of calculation (Cash option), the month after calculation (Nex
option) or in a subsequent month. When you elect the subsequent month option, the payment of the dividend will be included
based on the relative position of the first month of payment in relation to the year-end period (which is determined based on
the template start date at the top of the Assumptions sheet).
Example: If you want to include a dividend in the last month of each financial year, select a payment frequency of 12 months
and month 12 as the first payment month. Then select the Cash option in order to include both the dividend on the income
statement and the payment in the last month of the year.
Example: If you want to include a dividend in the last month of each financial year but delay payment to the first month of the
next financial year, select a payment frequency of 12 months and month 12 as the first payment month. Then select the Nex
option in order to include the dividend on the income statement in the last month of the financial year and the payment in the
first month of the next financial year. A dividend payable amount will then automatically be included on the balance sheet a
year-end.
Balance Sheet
All the calculations on the balance sheet are automated and no user input is therefore required.
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Instructions
Opening Balances
If you need to compile cash flow projections for an existing business, you will need to include the opening balance shee
balances at the start of the cash flow projection period. This is facilitated in the Balance Sheet Opening Balances section on
the Assumptions sheet. The opening balances that are entered here are included in the first column on the balance sheet.
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Instructions
You can use the trial balance as at the end of the period immediately before the start of the cash flow projection period fo
this purpose. All assets should have positive balances and all equity & liabilities should have negative balances. The opening
balances should also balance to a total of nil as with any accounting system trial balance. If you enter balances and the tota
of all balances is not nil, the entire opening balances section on the Assumptions sheet will be highlighted in orange.
You then need to fix the imbalance by adjusting the opening balances so that the total comes to a total of nil. The orange
highlighting will then be removed automatically. Also note that the cash flow projection balance sheet cannot balance if the
opening balances do not balance.
Note: If you are preparing a cash flow projection for a new business, you can include zero balances for all the balance shee
items in the opening balances section.
Non-Current Assets
The property, plant & equipment balances on the balance sheet are calculated by adding the purchases of property, plant &
equipment (entered on the Assumptions sheet in the first balance sheet assumptions section) and then deducting the
appropriate depreciation charges that are included on the income statement.
Intangible assets balances are calculated in much the same way by adding the purchases of intangible assets (also entered
on the Assumptions sheet in the first balance sheet assumptions section) and deducting the appropriate amortization
charges as per the income statement. The calculation of the investments balances on the balance sheet is a bit simpler in
that only the purchases of new investments (entered on the Assumptions sheet in the first balance sheet assumptions
section) are added to the previous period's balance and there is no depreciation or amortization on investments.
Note: Purchases of property, plant & equipment, intangible assets and investments all need to be entered as negative values
on the Assumptions sheet in the first balance sheet assumptions section.
Current Assets - Inventory
The inventory balances on the balance sheet are calculated based on the inventory days assumption which is specified on
the Assumptions sheet. The annual cost of sales is divided by the number of days in the financial year and multiplied by the
inventory days assumption in order to calculate the inventory balance at the end of the year.
Note: If your business does not carry inventory, you can simply enter a nil value in the inventory days assumption on the
Assumptions sheet. The inventory line on the balance sheet will then also contain nil values.
If you want to include variable annual inventory days, you can do so by changing the inventory days assumption in the
Workings section of the balance sheet which has been included below the section with the ratios. Simply replace the formula
which links the inventory days assumption to the value on the Assumptions sheet by overwriting it with the appropriate
inventory days value.
Current Assets - Trade Receivables
The trade receivables balances on the balance sheet are calculated based on the debtors days assumption which is
specified on the Assumptions sheet. The debtors days number can be determined based on the average trading terms which
has been negotiated with customers. The annual turnover as per the income statement is divided by the number of days in
the financial year and multiplied by the debtors days assumption in order to calculate the trade receivables balance at the
end of the year.
Where sales tax is applicable, the appropriate sales tax value relating to annual turnover will be added to the trade
receivables balance. Sales tax codes are defined on the Assumptions sheet and the codes in column A next to the turnove
amounts on the income statement are used to determine the appropriate rate of sales tax to be used.
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Instructions
The trade receivables calculation will also only include lines that are coded with a sales tax rate code (in the first two
characters) and a "C1" at the end of the code. The C1 part of the code refers to credit sales while the inclusion of a C0 code
at the end refers to cash sales. Cash sales do not need to be included in the trade receivables calculation and turnover lines
with C0 or no code in column A are therefore ignored when calculating trade receivable balances.
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Instructions
Example: If the standard rate sales tax code is V1 and the appropriate turnover line needs to be included in the calculation o
trade receivables, the code V1C1 needs to be added in column A of the appropriate turnover line on the income statement. I
you do not want to add sales tax in the trade receivables calculation but you do want a trade receivables line to be included
in the balance sheet, you can add a code which refers to a 0% sales tax calculation as well as the C1 credit sales indicator.
Example: If you do not want a particular turnover line to be included in the trade receivables calculation, you can include any
sales tax rate followed by C0 in order to exclude the line in the trade receivables calculations. For example, a turnover line
with a code of V1C0 would not form part of the trade receivables calculations.
Note: If your business has no trade receivables, you can simply enter a nil value in the debtors days assumption on the
Assumptions sheet. The trade receivables line on the balance sheet will then also contain nil values.
If you want to include variable annual debtors days, you can do so by changing the debtors days assumption in the Workings
section of the balance sheet which has been included below the section with the ratios. Simply replace the formula which
links the debtors days assumption to the value on the Assumptions sheet by overwriting it with the appropriate debtors days
value.
Current Assets - Loans & Advances, Other Receivables
The loans and advances & other receivables balances cannot be calculated by basing them on specific income statemen
items and they are therefore calculated by adding the movements in these balances (entered on the Assumptions sheet in
the first balance sheet assumptions section) to the balances of the previous month. If you therefore want to increase o
decrease these balances, you need to add the amount of the increase or decrease to the line with a matching description on
the Assumptions sheet.
Note: Movements in loans & advances and other receivables need to be entered as negative values on the Assumptions
sheet in order to increase the balance sheet balances.
Current Assets - Cash & Cash Equivalents
The cash & cash equivalents balances on the balance sheet are linked to the closing cash balances on the cash flow
statement. If the resulting cash & cash equivalents balance has a negative value, it will automatically be included in the bank
overdraft line in the Current Liabilities section of the balance sheet.
Equity - Shareholders Contributions, Reserves
The shareholders contributions & reserves balances cannot be calculated by basing them on income statement items and
they are therefore calculated by adding the movements in these balances (entered on the Assumptions sheet in the firs
balance sheet assumptions section) to the balances of the previous month. If you therefore want to increase or decrease
these balances, you need to add the amount of the increase or decrease to the line with a matching description on the
Assumptions sheet.
Equity - Retained Earnings
The retained earnings balances on the balance sheet are linked to the retained earnings for the year which is calculated on
the income statement.
Non-Current Liabilities - Loans 1 to 3, Leases
The template provides for loans & leases to be included based on 4 different sets of loan repayment terms. Loans with the
same repayment terms can be grouped together in the appropriate line item. There is no difference between the treatment o
loans 1 to 3 and leases. If you do not have finance leases and have loans with 4 different sets of repayment terms, you can
use the Leases sheet and rename the appropriate line items accordingly.
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Instructions
Note: The loan repayment period in years is limited to a maximum period of 30 years. If you want to include a loan
repayment period which exceeds this period, you need to change the data validation settings in the appropriate input cell by
selecting the data validation feature from the Data tab on the Excel ribbon and editing the maximum value of 30 which has
been set in the loan repayment period cells.
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Instructions
Each of the loan repayment terms can be specified in the Loan Terms section on the Assumptions sheet. The loan terms
include the annual interest rate, loan repayment period in years and a selection field which can be used to indicate interest
only loans. These loan repayment terms are then included at the top of the appropriate loan amortization sheet on the
Loans1 to Loans3 and Leases sheets.
Note: A set of loan terms can be specified as interest-only by selecting the "Yes" option from the interest-only drop-down lis
in the appropriate loan terms on the Assumptions sheet. If this selection is made, the loan will be interest only and no
include any loan repayments.
All the calculations on the amortization sheets are fully automated. The loan terms are taken from the Assumptions shee
and the opening balances in the first row of the amortization table are based on the opening balances that are entered in the
balance sheet opening balances section of the Assumptions sheet. Additional loan amounts can be entered in the proceeds
from loans lines in the first balance sheet assumptions section on the Assumptions sheet.
The loan repayments, interest charged and capital repayments are calculated based on the outstanding balances at the
beginning of each period. The outstanding loan or lease balances at the end of the appropriate annual period are then
included in the appropriate lines on the balance sheet.
Current Liabilities - Bank Overdraft
The bank overdraft as well as cash & cash equivalents are based on the closing cash balances which are calculated on the
cash flow statement. If the appropriate annual closing balance is negative, the balance is included as a bank overdraft and i
it is positive, it is included as cash under current assets on the balance sheet.
Current Liabilities - Trade Payables
The trade payables balances on the balance sheet are calculated based on the creditors days assumption which is specified
on the Assumptions sheet. The number of days that are included here can be determined based on the average trading
terms which has been negotiated with suppliers.
The annual cost of sales, operating expenses and staff costs on the income statement are added together in order to
determine an annual value on which the trade payables calculations should be based. Expenses and costs which are paid
on a cash basis can be excluded from the trade payables calculation by entering a code which ends in C0 in column A on the
income statement. The codes in column A start with the appropriate two character sales tax code and end with the two
character payables code.
Example: The expense codes in column A for all line items that need to be included in the trade payables calculation and
which need to be subject to sales tax at a standard rate should be V1C1. If the expense item is settled on a cash basis and
also subject to the standard sales tax rate, the code in column A should be V1C0 which will then result in the item not being
included in the trade payables calculation.
If you want to also include purchases of property, plant & equipment in the trade payables calculation, the standard code o
PPE in column A on the cash flow statement needs to be amended to the appropriate code which starts with the sales tax
code and ends with C1. For standard sales tax, the code will therefore be V1C1.
Like the calculation of inventory and trade receivables balances, the trade payables balances on the balance sheet are
calculated by dividing the appropriate annual cost of sales & expense total by the number of days in the financial year and
multiplying the resulting value by the creditors days value.
Where sales tax is applicable, the appropriate sales tax value relating to annual cost of sales & expenses will be added to
the trade payables balance. Sales tax codes are defined on the Assumptions sheet and the code in column A next to the cos
of sales & expense amounts on the income statement are used to determine the appropriate rate of sales tax to be used.
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Instructions
The trade payables calculation will also only include lines that are coded with a sales tax rate code (in the first two
characters) and a "C1" at the end of the code. The C1 part of the code refers to purchases on credit while the inclusion of a
C0 code at the end refers to cash purchases. Cash purchases do not need to be included in the trade payables calculation
and cost of sales & expense lines with C0 or no code in column A are therefore ignored when calculating trade payables
balances.
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Instructions
Example: If the standard rate sales tax code is V1 and the appropriate cost of sales or expense line needs to be included in
the calculation of trade payables, the code V1C1 needs to be added in column A of the appropriate line on the income
statement. If you do not want to add sales tax in the trade payables calculation but you do want a trade payables line to be
included in the balance sheet, you can add a code which refers to a 0% sales tax calculation as well as the C1 credi
purchases indicator.
Example: If you do not want a particular cost of sales or expense line to be included in the trade payables calculation, you
can include any sales tax rate followed by C0 in order to exclude the line in the trade payables calculations. For example, an
expense or cost of sales line item with a code of V1C0 in column A on the income statement would not form part of the trade
payables calculations.
Note: If your business has no trade payables, you can simply enter a nil value in the creditors days assumption on the
Assumptions sheet. The trade payables line on the balance sheet will then also contain nil values.
If you want to include variable annual creditors days, you can do so by changing the creditors days assumption in the
Workings section of the balance sheet which has been included below the section with the ratios. Simply replace the formula
which links the creditors days assumption to the value on the Assumptions sheet by overwriting it with the appropriate
creditors days value.
Current Liabilities - Sales Tax
The template accommodates the inclusion of sales tax in all relevant calculations based on four default sales tax calculation
codes and any sales tax period. All income statement and cash flow statement items need to be entered exclusive of any
sales tax that may be applicable and the trade receivables and trade payables balances on the balance sheet will be
calculated inclusive of sales tax. The net sales tax liability is included in the Sales Tax line on the balance sheet.
The template can be used for general sales tax (GST) and value added tax (VAT) purposes. Where there is no sales tax
input which reduces the sales tax liability, the codes in column A on the income statement can simply be changed to contain
a sales tax code (in the first two characters of the code) which has a zero percentage. Only the sales tax codes that are
included next to the turnover lines will then be included in sales tax calculations (as required by some general sales tax
calculations).
The appropriate sales tax percentages can be entered in the Sales Tax section of the Assumptions sheet. The template
provides for 4 default sales tax codes, each with its own sales tax percentage. The sales tax codes are numbered from V1 to
V4.
The income statement contains codes in column A which affects the calculations of sales tax and trade receivables or trade
payables. The first two characters of these codes determine which sales tax percentage is used in the sales tax calculations
If an income statement item needs to be excluded from sales tax calculations, you should use a sales tax code with a zero
percentage on the Assumptions sheet.
Note: Each line on the income statement can therefore only be linked to one sales tax percentage. If more than one sales tax
percentage needs to be applied to the same income statement item, you need to split the income statement amount into two
lines and enter the appropriate sales tax codes in column A for each of the lines.
Note: If you are preparing cash flow projections for a business which is not subject to sales tax, simply enter zero
percentages for all four sales tax codes.
The sales tax assumptions that need to be specified on the Assumptions sheet also include the frequency of sales tax
payments (in months) and the calendar month of the first payment period. You can therefore calculate sales tax based on
any period frequency from one to twelve months.
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Instructions
Example: If your business is subject to sales tax payments of every two months and the first payment is due in February, a
frequency of 2 needs to be specified and the first payment month should be set to 2 for February. Similarly, if your business
is subject to sales tax payments of every 6 months with payments due in March and August, the frequency should be set to 6
and the first payment month should be set to 3. If your business is subject to annual sales tax payment periods, the
frequency should be 1 and the first payment month should also be 1.
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Instructions
The Current or Subsequent setting in the Sales Tax section on the Assumptions sheet determines how the calculated sales
tax amounts of the current period are handled. If you select the Current option, the sales tax amounts of the current period
will be included in the calculation of the payment amount which is due in the particular month and the sales tax liability at the
end of the payment month will be nil.
If you select the Subsequent setting, the sales tax amount of the current period is not included in the calculation of the
payment amount and the sales tax liability at the end of the appropriate payment month will always include at least one
month.
Note: The Subsequent setting is usually the appropriate setting to use for sales tax purposes. The Current settings is more
applicable to tax types which are subject to provisional tax.
Note: The first payment month setting refers to the month of payment and not the sales tax period end. There is a difference
- a sales tax period may end in February with payment in March which means that the first payment month of the calenda
year is actually January or month 1 (if the payment frequency is two months).
The sales tax balances at year-end are calculated by calculating the total sales tax for the appropriate year, dividing it by
twelve and then multiplying the value by the number of months that are included in the sales tax balance at the end of the
year.
Current Liabilities - Payroll Accruals
The payroll accrual on the balance sheet is based on the payroll accrual assumptions in the Working Capital section of the
Assumptions sheet and the amounts in the staff costs section of the income statement. If payroll deductions are paid in the
same month as they are incurred, you can set the payroll accrual percentage to zero and the payroll accrual balances on the
balance sheet will also be zero.
Staff costs have been included in a separate section on the income statement to make it easier to calculate payroll accrua
balances. You can however include staff costs in operating expenses but you need to ensure that you also include the "PAY"
code in column A for all the staff costs that you want to include in the payroll accrual calculations.
You also need to specify the appropriate percentage of staff costs which needs to be included in your payroll accruals. This
percentage should be based on the percentage of staff costs which are paid in a subsequent month and is based on the
current year's staff costs. Payroll accruals usually consist of salary & wage deductions which need to be paid over to third
parties and differ from entity to entity. You therefore need to calculate the appropriate payroll accrual percentage based on
the composition of the salary or wage structures of all employees.
The payroll accrual assumptions that need to be specified on the Assumptions sheet also include the frequency of payrol
accrual payment periods (in months) and the payment month of the first payroll accrual period. You can therefore calculate
payroll accruals based on any payment period frequency from one to twelve months. The calculated payroll accruals are
added together in the payroll accrual balance until the month of payment.
Example: If you need to settle payroll accruals every two months and the first payment is due in February, a frequency of 2
needs to be specified and the first payment month should be set to 2 for February. Similarly, if you settle payroll accruals
every 6 months with payments due in March and August, the frequency should be set to 6 and the first payment month
should be set to 3. If you settle payroll accruals on a monthly basis, the frequency should be 1 and the first payment month
should also be 1.
The Current or Subsequent setting in the Payroll Accruals section on the Assumptions sheet determines how the calculated
payroll accrual amounts of the current period are handled. If you select the Current option, the payroll accrual amounts of the
current period will be included in the calculation of the payment amount which is due in the particular period and the payrol
accrual balance at the end of the payment month will be nil.
Page 19 of 37
Instructions
If you select the Subsequent setting, the payroll accrual amounts of the current period are not included in the calculation o
the payment amount and the payroll accrual balances on the balance sheet at the end of the appropriate payment month wil
always include at least one month.
Note: The Subsequent setting is usually the appropriate setting to use for payroll accrual purposes. The Current setting is
more applicable to tax types which are subject to provisional tax payments where payment occurs in the same month as the
tax calculation.
Page 20 of 37
Instructions
Example: If you set a payment frequency of 1 month, first payment month of 1 and select the Current option, the payrol
accruals on the balance sheet will always be nil because the current month's payroll accruals will be included in the paymen
calculation. If you have the same period settings and select the Subsequent option, the payroll accruals on the balance shee
will always include the current month's payroll accrual because the payment amount will be based on the previous month's
payroll accrual.
Note: The first payment month setting refers to the month of payment and not the payroll accrual period end. There is a
difference - a payroll accrual period may end in February with payment in March which means that the first payment month o
the calendar year is actually January or month 1 (if the payment frequency is two months).
If you want to include payroll accruals based on variable annual payroll accrual percentages, you can do so by changing the
payroll accrual percentage assumption in the Workings section of the balance sheet which has been included below the
section with the ratios. Simply replace the formula which links the payroll accrual percentage assumption to the value on the
Assumptions sheet by overwriting it with the appropriate payment accrual percentage.
The annual payroll accrual balances are calculated by multiplying the appropriate year's staff costs by the payroll accrua
percentage, dividing the result by 12 and multiplying it by the number of months which should be included in the payrol
accrual at year-end.
Current Liabilities - Other Accruals, Other Provisions
The other accrual & other provisions balances cannot be calculated by basing them on specific income statement items and
they are therefore calculated by adding the movements in these balances (entered on the Assumptions sheet in the firs
balance sheet assumptions section) to the balances of the previous period. If you therefore want to increase or decrease
these balances, you need to add the amount of the increase or decrease to the line with a matching description on the
Assumptions sheet.
Current Liabilities - Provision for Taxation
The calculation of income tax on the income statement is based on the profit before tax on the income statement and the
assumptions that are specified in the Income Tax section on the Assumptions sheet.
The profit before tax amount is multiplied by the income tax percentage on the Assumptions sheet in order to calculate the
annual income tax value. If there is a loss before tax on the income statement, no income tax will be calculated but if there
were profits before the period with the loss, the income tax that was calculated in previous periods will be reversed in the
period with the loss.
The template also makes provision for the inclusion of an assessed loss which has been carried over from previous financia
periods and income tax will only be calculated after the assessed loss has been fully reduced by profits in the projection
periods.
The income tax assumptions on the Assumptions sheet also include the frequency of payment of income tax (in months) and
the calendar month of the first income tax payment. You can therefore calculate a provision for income tax based on any
payment period frequency from one to twelve months. The calculated income tax amounts are added together in the
provision for income tax balance on the balance sheet until the month of payment.
Example: If you need to settle income tax liabilities every six months and the income tax payments are due in February and
August of each year, a frequency of 6 needs to be specified and the first calendar month should be set to 2 for February. I
you settle income tax liabilities at the end of each quarter with payments due in March, June, September and December, the
frequency should be set to 3 and the first payment month should also be set to 3.
Page 21 of 37
Instructions
The Current or Subsequent setting in the Income Tax section on the Assumptions sheet determines how the income tax
amounts of the current period are handled. If you select the Current option, the income tax amounts of the current period wil
be included in the calculation of the payment amount which is due in the particular month and the provision for income tax
balance on the balance sheet at the end of the payment month will be nil.
If you select the Subsequent setting, the income tax amounts of the current period are not included in the calculation of the
payment amount and the provision for income tax balance on the balance sheet at the end of the appropriate paymen
month will always include income tax for at least one month.
Page 22 of 37
Instructions
Note: The Current setting is usually the appropriate setting to use for income tax purposes if the entity is a provisiona
taxpayer which effectively means that income tax is paid in advance. If the entity is not a provisional taxpayer, the
Subsequent setting should be used because income tax will be settled after being incurred.
Note: The number of months which needs to be included in the provision for income tax at year-end is determined on a
rolling basis which means that the difference between the year-end month and the previous payment date is always
calculated. When you have a 12 month payment period and the payment month is subsequent to the year-end, this method
of calculation may not have the desired effect because the full 12 months may not be included in the provision for income
tax. You therefore need to specify the first month after year-end as the first payment month which will result in the full 12
months being included in the provision.
Example: If income tax payments are made every 12 months and the payment month is 6 months after the year-end period
the default calculations will only include income tax charges for 6 months in the provision because only 6 months have
elapsed since the previous payment date. Say you have a year-end of February and income tax payments are made in
August (6 months after year-end). For the purpose of this template, you will need to include a first payment month of 3
(March) and select the subsequent option in order to ensure that income tax for the full 12 months are included in the
provision. If you don't include the first month after year-end (March) as the first payment month, the income tax provision wil
only include 6 months being the period since the last payment date (August) and the provision for income tax will only
include the period from September to February.
The annual provision for income tax balances are calculated by calculating the income tax amount for the appropriate year
dividing it by 12 and multiplying the value by the number of months which needs to be included in the provision. This is
determined based on the year-end period and the income tax assumptions on the Assumptions sheet.
Current Liabilities - Dividends Payable
The calculation of dividends on the income statement is based on the profit for the year on the income statement and the
assumptions that are specified in the Dividends section on the Assumptions sheet. Dividends will only be calculated if you
enter a dividend percentage on the Assumptions sheet - if you therefore do not want to include dividends in your cash flow
projections, you can simply enter a zero value as the dividend percentage.
The dividend percentage that is specified on the Assumptions sheet is applied to the profit for the year on the income
statement which can be found directly above the dividends line. Dividends will also only be calculated if there is a cumulative
profit for the year.
The dividends assumptions on the Assumptions sheet also include the frequency of payment of dividends (in months) and
the first calendar month of the dividend payment. You can therefore calculate dividends based on any payment period
frequency from one to twelve months (although 6 or 12 months is the norm). The calculated dividends amounts are added
together in the dividends payable balance on the balance sheet until the month of payment.
Example: If dividends are declared every six months, you need to specify a frequency of 6 months on the Assumptions shee
and then select the appropriate payment basis. Dividends will be reflected on the income statement every 6 months and the
dividends payable balances on the balance sheet will be determined based on the first payment month and the paymen
option which is selected (Cash, Next or Subsequent). Similarly, if the payment frequency is set to 12 months, dividends wil
be included on the income statement every 12 months and the dividends payable balance will be determined based on the
first payment month and the payment option.
The Cash, Next or Subsequent setting in the Dividends section on the Assumptions sheet determines how the dividends
payable balances on the balance sheet are calculated and therefore also when the dividend payment will be included on the
cash flow statement.
Page 23 of 37
Instructions
If you select the Cash option, the dividend payable balances on the balance sheet will always be nil and what this means is
that the dividend payment is effectively included in the same month as the month in which the dividend is declared. The
month in which the declared dividend is included is based on the payment frequency (in months) and the cash flow projection
year-end.
If you select the Next option, the dividend payment will be included in the month after the month in which the dividend
amount is included on the income statement. The dividend payable balance on the balance sheet will therefore only contain
a balance in the dividend declaration month.
Page 24 of 37
Instructions
If you select the Subsequent option, dividends will be included on the income statement based on the frequency setting on
the Assumptions sheet and the payment of the dividend will be delayed until the first payment month (also as per the
Assumptions sheet) is reached. A dividends payable balance will be reflected on the balance sheet in all months until the
payment month is reached.
Example: If you set the dividend payment frequency to 12 months, a dividend amount will be included on the income
statement in the last month of the appropriate cash flow projection year. If the payment option is set to Cash, no dividend
payable amount will be included on the balance sheet and the dividend payment will be included on the cash flow statemen
in the same month.
Example: If you set the dividend payment frequency to 12 months and the payment option is set to Next, the dividend will be
included on the income statement in the last month of the appropriate cash flow projection year, the dividend payable at the
end of the financial year will equal the income statement amount and the dividend payment will be included in the first month
of the next financial year.
Example: If you set the dividend payment frequency to 12 months and the payment option is set to Subsequent, the dividend
will be included on the income statement in the last month of the appropriate cash flow projection year and the dividend
payable at the end of the financial year and all subsequent months in the new financial year until the first payment month is
reached will equal the income statement amount. The dividend payment will be included in the first payment month as set on
the Assumptions sheet but in the year after inclusion on the income statement.
The annual dividend payable balances are calculated based on the profit for the year, the dividend percentage and the
payment status of Cash, Next or Subsequent.
Balance Sheet Errors
If the balance sheet for any annual period does not balance, the amount of the imbalance will be included in the row below
the total equities & liabilities and displayed in red. The template has been designed in such a way that the balance shee
should always be in balance as long as the total of the balance sheet opening balances which are included on the
Assumptions sheet is nil.
If you see an imbalance on the balance sheet, you therefore need to check the opening balance sheet balances on the
Assumptions sheet and ensure that the total of all the opening balances in this section is nil.
If fixing the opening balances does not resolve your imbalance, you can e-mail our Support function and let us know wha
changes you have made to the formulas in the template so that we can assist you. If you have made a lot of changes, you
may need to start over with the downloaded copy of the template.
Balance Sheet Workings
We have included all the calculations which form part of the calculation of balance sheet balances in the Workings section
below the balance sheet ratios. These workings will not be printed and are for information purposes only. You can therefore
hide this section if you do not want to see it on the sheet but do not delete any of these formulas because it will result in
calculation errors if you do!
Cash Flow Statement
The cash flow statement requires no user input. All the calculations on the cash flow statement are based on the balance
sheet calculations and the user input on the Assumptions sheet.
If you need more guidance on any item on the cash flow statement, refer to the appropriate section for the particular item
under the Balance Sheet section of these instructions.
Page 25 of 37
Instructions
Loan Amortization Tables (Loans1 to Loans3 & Leases sheets)
The template makes provision for including loans with up to four different sets of repayment terms in the cash flow
projections. The amortization tables that are used to calculate the interest charges, loan repayments and outstanding
balances have been included on the Loans1, Loans2, Loans3 and Leases sheets. No user input is required on any of these
sheets.
Page 26 of 37
Instructions
Note: Refer to the instructions in the income statement - interest paid section and the balance sheet - non-current liabilities
section for guidance on how these amortization tables have been compiled and where to include user input for each of these
amortization tables.
Help & Customization
If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility in
mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation o
your requirements.
© Copyright
This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws. Any
publication or distribution of this template outside the scope of the permitted use of the template is expressly prohibited. In
terms of the permitted use of this template, only the distribution of the template to persons within the same organisation as
the registered user or persons outside the organisation who can reasonably be expected to require access to the template
as a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the template by
parties outside of the organisation is however expressly prohibited and represents an infringement of international copyrigh
laws.
Page 27 of 37
Example (Pty) Limited
Cash Flow Projections - Assumptions
© www.excel-skills.com
Business Name Example (Pty) Limited
Start Date 3/1/2019
Financial Assumptions - Income Statement

Annual projections for the first year need to be entered on the IncState worksheet. The assumptions below are then used to calculate the On
On this
this sheet:
sheet:
year 2 to 5 balances.
The
The input
input values
values on on this
this sheet
sheet are
are used
used toto automate
automate
projection
projection calculations.
calculations. The The reporting
reporting periods
periods that
that are
are
Turnover Year 2 Year 3
statement, Year 4 Year 5
statement, cashcash flow
flow statement
statement and and balance
balance sheet
sheet are
are
Annual Turnover Growth % 8.0% 8.0%date
start
start date that
that is 10.0%
is specified
specified at
at the 10.0%
the top
top of
of this
this sheet.
sheet. Other
Other
Gross Profit % include
include annual
annual turnover
turnover growth,
growth, annual
annual expense
expense infl
inf
receivables,
This is thetrade
receivables,
The annual gross profit percentages for all products or services need to be entered on the IncState sheet. trade payables,
item whichpayroll
payables,
only line payroll accruals,
accruals, sales
sales tax
tax
balance
balance sheet
sheet opening
opening balances
balances and
and dd
requires user input in the year 2 to 5 columns - the year 2 to 5 amounts for the rest of the income statement are calculated automatically.
Operating Expenses
Annual operating expense projections for the first year need to be entered on the IncState worksheet and the year 2 to 5 amounts are determined
based on the below expense inflation rates. Year 2 Year 3 Year 4 Year 5
Annual Expense Inflation % 6.0% 6.0% 6.0% 6.0%
Staff Costs
Annual staff costs for the first year need to be entered on the IncState worksheet and the year 2 to 5 amounts are also determined
based on the above expense inflation rates.
Depreciation & Amortization Year 2 Year 3 Year 4 Year 5
Annual depreciation & amortization projections for the first year need to be entered on the IncState worksheet. The assumptions below are then
used to calculate the year 2 to 5 balances.
Annual Depreciation Charges 263,000 307,000 250,000 275,000
Annual Amortization Charges 12,000 12,000 12,000 12,000
Interest & Taxation
Automatically calculated on the IncState worksheet.
Financial Assumptions - Balance Sheet

The following balance sheet balances are projected by entering the appropriate annual movements in the section below. Red codes in column A
indicate that you need to enter a negative value to increase the appropriate balance sheet balance.
Year 1 Year 2 Year 3 Year 4 Year 5
RES Reserves - - - - -
ADV Loans & Advances - (20,000) - 10,000 15,000
ODB Other Receivables - (7,000) - (5,000) (10,000)
ACC Other Accruals 5,000 6,000 (16,000) 20,000 10,000
OPV Other Provisions (12,000) (9,000) 19,000 15,000 18,000
PPE Purchases of property, plant & equipment (240,000) (300,000) (180,000) (200,000) (350,000)
INA Purchases of intangible assets - - - - -
INV Purchases of investments - (400,000) (600,000) (500,000) (400,000)
CAP Proceeds from shareholders' contributions - - - - -
LT1 Loans 1 (only the proceeds from loans) - - - - -
LT2 Loans 2 (only the proceeds from loans) 100,000 - - - -
LT3 Loans 3 (only the proceeds from loans) 240,000 300,000 180,000 200,000 350,000
FIN Finance Leases (only the proceeds) - - - - -
The following balance sheet balances are calculated based on the assumptions that are entered on this sheet:
Working Capital
Inventory Days 30
Debtors Days 25
Creditors Days 20
Payroll Accrual:
Accrual % 20.0%
Payment Frequency (Months) 1
First Payment Month 1 1
Current Or Subsequent Subsequent 1
Sales Tax
Rates
Standard 15.0%
Secondary 0.0%
Zero Rated 0.0%
Exempt 0.0%
Current Or Subsequent Subsequent 1
Page 28 of 37
Cash Flow Projections - Assumptions
Income Tax
Income Tax % 28.0%
Assessed Loss Carried Over 0
Current Or Subsequent Current 0
Projected loan repayments and interest are calculated based on the below terms (each on a separate sheet).
Loan Terms Loans 1 Loans 2 Loans 3 Leases
Interest Rate 10.25% 9.25% 12.50% 11.50%
Repayment Term (in years) 10.0 8.0 5.0 4.0
Interest Only No No No No
The below section can be used to include balance sheet opening balances for existing businesses.
Balance Sheet Opening Balances
PPE Property, Plant & Equipment 1,050,000
INA Intangible Assets 120,000
INV Investments 800,000
ADV Loans & Advances 55,000
STC Inventory 170,000
DEB Trade Receivables 370,000
ODB Other Receivables 53,000
CSH Cash & Cash Equivalents 171,000
CAP Shareholders' Contributions (1,000)
RES Reserves -
EAR Retained Earnings (400,000)
LT1 Long Term Loans 1 (1,200,000)
LT2 Long Term Loans 2 (500,000)
LT3 Long Term Loans 3 -
FIN Finance Leases (425,000)
OVD Bank Overdraft -
CRE Trade Payables (130,000)
VAT Sales Tax (16,000)
PAY Payroll Accruals (20,000)
ACC Accruals (55,000)
TAX Provision For Taxation -
DIV Dividends Payable -
OPV Other Provisions (42,000)
Dividends
Dividend % 0.0%
Current Or Subsequent Next 1
Page 29 of 37
On
On this
this sheet:
sheet:
The
The input
input values
values on on this
this sheet
sheet are
are used
used toto automate
automate some
some of of the
the cash
cash flow
flow
projection
projection calculations.
calculations. The The reporting
reporting periods
periods that
that are
are included
included on on the
the income
income
statement,
statement, cash
cash flow
flow statement
statement and and balance
balance sheet
sheet are
are determined
determined basedbased on on the
the
start
start date
date that
that is
is specified
specified atat the
the top
top of
of this
this sheet.
sheet. Other
Other assumptions
assumptions on on this
this sheet
sheet
include
include annual
annual turnover
turnover growth,
growth, annual
annual expense
expense inflation,
inflation, inventory,
inventory, trade
trade
receivables,
receivables, trade
trade payables,
payables, payroll
payroll accruals,
accruals, sales
sales tax,
tax, income
income tax,
tax, loan
loan terms,
terms,
balance
balance sheet
sheet opening
opening balances
balances and
and dividends.
dividends.
Page 30 of 37
Cash Flow Projections - Income Statement
Feb/2020 Feb/2021 Feb/2022 Feb/2023 Feb/2024
Product Sales 3,662,300 3,955,284 4,271,707 4,698,877 5,168,765
Income From Services 1,535,100 1,657,908 1,790,541 1,969,595 2,166,554
Total Turnover 5,197,400 5,613,192 6,062,247 6,668,472 7,335,319
Products 2,362,230 2,452,276 2,563,024 2,819,326 3,101,259
Services - - - - -
Total Cost of Sales 2,362,230 2,452,276 2,563,024 2,819,326 3,101,259
Products 1,300,070 1,503,008 1,708,683 1,879,551 2,067,506
Services 1,535,100 1,657,908 1,790,541 1,969,595 2,166,554
On
On this
thissheet:
sheet:
Total Gross Profit 2,835,170 3,160,916
This
This sheet contains3,499,223
sheet contains an
an annual
annual income3,849,146
income statement
statement for for 554,234,060
annual
annual periods.
periods. All
All the
the
Products 35.5% yellow highlighting
highlighting in
yellow38.0% in column
40.0% A
column A require
require user
user input
40.0% input in
in column
40.0%C.
column C. Only
Only thethe gros
gro
Services 100.0% rows
rows require
require user
100.0% user input
input
100.0%in
in all
all the
the annual
annual columns.
100.0%columns. TheThe values
values in
100.0% in all
all other
other rr
calculated
calculated automatically. Additional
Additional turnover
automatically.57.7% turnover &
& expense
expense rows
rows can
can be
be added
added ifif r
Gross Profit % 54.5% 56.3% 57.7% 57.7%
the
the template
template isis suitable
suitable for
for both
both service
service && trade
trade based
based businesses.
businesses. The The codes
codes
Other Income 6,000 apply
apply to 6,480
to automated
automated balance6,998sheet
balance 7,698 for
sheet calculations
calculations for sales 8,468
sales tax,
tax, trade
trade receivables
receivable
Operating Expenses payables.
payables.
Accounting Fees 24,000 25,440 26,966 28,584 30,299
Advertising & Marketing 131,000 138,860 147,192 156,023 165,384
Bank Charges 3,000 3,180 3,371 3,573 3,787
Cleaning Expenses 9,420 9,985 10,584 11,219 11,893
Computer Expenses 8,000 8,480 8,989 9,528 10,100
Consumables 5,289 5,606 5,943 6,299 6,677
Electricity & Water 13,400 14,204 15,056 15,960 16,917
Entertainment 12,000 12,720 13,483 14,292 15,150
Equipment Hire 18,000 19,080 20,225 21,438 22,725
Insurance 25,800 27,348 28,989 30,728 32,572
Legal Fees 74,000 78,440 83,146 88,135 93,423
Motor Vehicle Expenses 1,800 1,908 2,022 2,144 2,272
Postage 1,200 1,272 1,348 1,429 1,515
Printing & Stationery 3,600 3,816 4,045 4,288 4,545
Professional Fees 32,000 33,920 35,955 38,113 40,399
Rent 244,000 258,640 274,158 290,608 308,044
Repairs & Maintenance 5,880 6,233 6,607 7,003 7,423
Security 3,900 4,134 4,382 4,645 4,924
Subscriptions 3,200 3,392 3,596 3,811 4,040
Telephone & Fax 30,120 31,927 33,843 35,873 38,026
Training 12,000 12,720 13,483 14,292 15,150
Uniforms 2,530 2,682 2,843 3,013 3,194
Total Operating Expenses 664,139 703,987 746,227 791,000 838,460
Staff Costs
Salaries 840,000 890,400 943,824 1,000,453 1,060,481
Wages 360,000 381,600 404,496 428,766 454,492
Total Staff Costs 1,200,000 1,272,000 1,348,320 1,429,219 1,514,972
Depreciation & Amortization
Depreciation 188,000 263,000 307,000 250,000 275,000
Amortization 12,000 12,000 12,000 12,000 12,000
Total Depreciation & Amortization 200,000 275,000 319,000 262,000 287,000
Profit / (Loss) before Interest & Tax 777,031 916,409 1,092,675 1,374,625 1,602,096
Interest Paid
Interest - Loans 1 123,000 115,374 106,967 97,698 87,479
Interest - Loans 2 55,500 50,513 45,065 39,112 32,609
Interest - Loans 3 30,000 62,824 74,220 83,220 105,075
Interest - Leases 48,875 38,573 27,087 14,280 -
Total Interest Paid 257,375 267,285 253,339 234,311 225,163
Profit / (Loss) before tax 519,656 649,123 839,337 1,140,314 1,376,933
Taxation 145,504 181,755 235,014 319,288 385,541
Profit / (Loss) for the year 374,152 467,369 604,322 821,026 991,392
Dividends - - - - -
Retained earnings for the year 374,152 467,369 604,322 821,026 991,392
Profit / (Loss) % 7.2% 8.3% 10.0% 12.3% 13.5%
Interest Cover 3.02 3.43 4.31 5.87 7.12

Return on Equity (ROE) 48.3% 37.6% 32.7% 30.8% 27.1%
Return on Net Assets (RONA) 12.5% 13.7% 15.8% 18.8% 18.8%
Page 31 of 37
Cash Flow Projections - Cash Flow Statement
Feb/2020 Feb/2021 Feb/2022 Feb/2023 Feb/2024
Cash flows from operating activities
Profit / (Loss) for the year 374,152 467,369 604,322 821,026 991,392
Interest 257,375 267,285 253,339 234,311 225,163
Taxation 145,504 181,755 235,014 319,288 385,541
Adjustment for non-cash expenses:
Depreciation 188,000 263,000 307,000 250,000 275,000
Amortization 12,000 12,000 12,000 12,000 12,000
Reserves - - - On
On this
this sheet:
sheet: - -
Changes in operating assets & liabilities This
This sheet
sheet includes
includes aa cash
cash flow
flow statement
statement for for 55 annual
annual periods.
periods. No
No user
user
input
input is required
required on
is(7,932) on this sheet.
sheet. All
this(9,103) All the
the cash
cash flow
flow statement
statement calculations
calculations are
are
Inventory (23,625) (21,066) (22,476)
automated
automated and and based
based onon the
the user
user input
input onon the
the “Assumptions”
“Assumptions” sheetsheet and
and the
th
Trade Receivables (38,266) (33,869) (35,371)
calculations (47,751) (50,947)
calculations on on the
the balance
balance sheet.
sheet.
Loans & Advances - (20,000) - 10,000 15,000
Other Receivables - (7,000) - (5,000) (10,000)
Trade Payables 39,256 7,390 8,306 17,557 18,651
Sales Tax 38,276 7,147 7,402 7,629 8,436
Payroll Accruals - 1,200 1,272 1,348 1,429
Other Accruals 5,000 6,000 (16,000) 20,000 10,000
Other Provisions (12,000) (9,000) 19,000 15,000 18,000
Cash generated from operations 985,672 1,135,345 1,387,181 1,634,342 1,877,189
Interest paid (257,375) (267,285) (253,339) (234,311) (225,163)
Taxation paid (145,504) (181,755) (235,014) (319,288) (385,541)
Net cash from operating activities 582,793 686,305 898,828 1,080,744 1,266,485
Cash flows from investing activities
Purchases of property, plant & equipment (240,000) (300,000) (180,000) (200,000) (350,000)
Purchases of intangible assets - - - - -
Purchases of investments - (400,000) (600,000) (500,000) (400,000)
Net cash used in investing activities (240,000) (700,000) (780,000) (700,000) (750,000)
Cash flows from financing activities
Proceeds from shareholders' contributions - - - - -
Dividends paid - - - - -
Proceeds from loans 1 - - - - -
Proceeds from loans 2 100,000 - - - -
Proceeds from loans 3 240,000 300,000 180,000 200,000 350,000
Proceeds from finance leases - - - - -
Repayment of loans 1 (74,397) (82,022) (90,430) (99,699) (109,918)
Repayment of finance leases (89,579) (99,880) (111,367) (124,174) -
Net cash from financing activities 84,705 (29,641) (214,141) (269,340) (88,332)
Increase / (Decrease) in cash equivalents 427,499 (43,335) (95,312) 111,404 428,153
Cash & cash equivalents at beginning of year 171,000 598,499 555,163 459,851 571,255
Cash & cash equivalents at end of year 598,499 555,163 459,851 571,255 999,408
Page 32 of 37
Cash Flow Projections - Balance Sheet
Feb/2019 Feb/2020 Feb/2021 Feb/2022 Feb/2023 Feb/2024
ASSETS
Non-Current Assets
Property, Plant & Equipment 1,050,000 1,102,000 1,139,000 1,012,000 962,000 1,037,000
Intangible Assets 120,000 108,000 96,000 84,000 72,000 60,000
Investments 800,000 800,000 1,200,000 1,800,000 2,300,000 2,700,000
1,970,000 2,010,000 2,435,000 2,896,000 3,334,000 3,797,000
Current Assets
Inventory 170,000 193,625 201,557 210,660 231,725 254,202
Trade Receivables 370,000 408,266 442,135 477,506 525,256 576,203
Loans & Advances 55,000 55,000 75,000 75,000
On this sheet: 65,000 50,000
On this sheet:
Other Receivables 53,000 This
This sheet
53,000contains
sheet contains aa balance
balance sheet
60,000 sheet for 55 annual
annual periods.
for60,000 periods. All
All the
65,000 the calculations
75,000on
calculations on
Cash & Cash Equivalents 171,000 this
this sheet
sheet are
are automated
598,499 automated and
and no
555,163 no user
user input
input
459,851is
is required.
required. The
The entire
entire balance
571,255 balance sheet
sheet is
999,408 is
819,000
calculated
calculated based on
1,308,390 based on
the
the values
values on
1,333,855 on the
the annual
annual income
1,283,016 income statement
statement and
1,458,237 and cash
cash flow
flow
1,954,812
statement.
statement. Opening
Opening balances
balances at at the
the start
start of
of the
the cash
cash flow
flow projection
projection period
period can
can be
be
Total Assets 2,789,000 3,318,390 3,768,855
included 4,179,016 4,792,237 5,751,812
included on
on thethe “Assumptions”
“Assumptions” sheet. sheet.
EQUITY & LIABILITIES
Equity
Shareholders' Contributions 1,000 1,000 1,000 1,000 1,000 1,000
Reserves - - - - - -
Retained Earnings 400,000 774,152 1,241,521 1,845,844 2,666,870 3,658,261
401,000 775,152 1,242,521 1,846,844 2,667,870 3,659,261
Non-Current Liabilities
Long Term Loans 1 1,200,000 1,125,603 1,043,581 953,151 853,452 743,534
Long Term Loans 2 500,000 546,086 487,185 422,836 352,534 275,730
Long Term Loans 3 - 202,595 413,758 465,763 490,598 588,988
Finance Leases 425,000 335,421 235,541 124,174 - -
2,125,000 2,209,705 2,180,065 1,965,924 1,696,584 1,608,252
Current Liabilities
Bank Overdraft - - - - - -
Trade Payables 130,000 169,256 176,646 184,952 202,509 221,160
Sales Tax 16,000 54,276 61,423 68,825 76,454 84,890
Payroll Accruals 20,000 20,000 21,200 22,472 23,820 25,250
Other Accruals 55,000 60,000 66,000 50,000 70,000 80,000
Provision For Taxation - - - - - -
Dividends Payable - - - - - -
Other Provisions 42,000 30,000 21,000 40,000 55,000 73,000
263,000 333,532 346,269 366,249 427,783 484,300
Total Equity & Liabilities 2,789,000 3,318,390 3,768,855 4,179,016 4,792,237 5,751,812
Days in year 366 365 365 365 366
Current Ratio 3.9 3.9 3.5 3.4 4.0

Quick Ratio 3.3 3.3 2.9 2.9 3.5
Inventory Days 30.0 30.0 30.0 30.0 30.0
Debtors Days 25.0 25.0 25.0 25.0 25.0
Creditors Days 20.0 20.0 20.0 20.0 20.0
Debt / Equity 2.9 1.8 1.1 0.6 0.4
Page 33 of 37
Cash Flow Projections - Repayment Schedule - Loans 1
Interest Rate 10.25%

Repayment Term 10.0
Interest Only No
Opening Additional Loan Interest Capital Closing
Year
Balance Loans Repayment Charges Repayment Balance
0 - 1,200,000 - - - 1,200,000
1 1,200,000 - 197,397 123,000 74,397 1,125,603
2 1,125,603 - 197,397 115,374 82,022 1,043,581
3 1,043,581 - 197,397 106,967 90,430 953,151
4 953,151 - 197,397 97,698 On this sheet:
99,699 853,452
On this sheet:
5 853,452 This
This is
is the
-the first
first of four
four amortization
of197,397 amortization tables
tables that
87,479 are
are calculated
that109,918
calculated743,534based
based onon the
the balance
balance sheet
sheet
6 743,534 opening
opening- balances and
and loan
balances197,397 loan terms that
that are
terms76,212 are specified
specified
121,184 in
in the
the template
622,350assumptions.
template assumptions. No No user
user
input
input- isis required
required on
on these
these sheets
sheets and
and additional
additional loan
loan amounts
amounts can
can be
be added
added on
on the
the
7 622,350 197,397 63,791 133,606 488,744
“Assumptions”
“Assumptions” sheet. sheet. The
The interest
interest charges
charges andand capital
capital repayment
repayment amounts
amounts of of each
each
8 488,744 -
amortization 197,397 automatically50,096 147,301 341,443
amortization table table are
are automatically included
included onon the
the income
income statement
statement and
and cash
cash flow
flow
9 341,443 statement.-
statement. The
The template
197,397 therefore
template therefore accommodates
34,998
accommodates automated
162,399
automated179,045 loan
loan calculations
calculations based
based onon
10 179,045 - 197,397 four
four different
different sets
18,352sets of
of loan
loan repayment
repayment terms.
179,045 terms.-
11 - - - - - -
12 - - - - - -
13 - - - - - -
14 - - - - - -
15 - - - - - -
Page 34 of 37
Interest Rate 9.25%

Repayment Term 8.0
Interest Only No
Year
0 - 500,000 - - - 500,000
1 500,000 100,000 109,414 55,500 53,914 546,086
2 546,086 - 109,414 50,513 58,901 487,185
3 487,185 - 109,414 45,065 64,349 422,836
4 422,836 - 109,414 39,112 70,302 352,534
5 352,534 - 109,414 32,609 76,805 275,730
6 275,730 - 109,414 25,505 83,909 191,821
7 191,821 - 109,414 17,743 91,671 100,150
8 100,150 - 109,414 9,264 100,150 -
9 - - - - - -
10 - - - - - -
11 - - - - - -
12 - - - - - -
13 - - - - - -
14 - - - - - -
15 - - - - - -
Page 35 of 37

Repayment Term 5.0
Interest Only No
Year
0 - - - - - -
1 - 240,000 67,405 30,000 37,405 202,595
2 202,595 300,000 151,661 62,824 88,837 413,758
3 413,758 180,000 202,215 74,220 127,995 465,763
4 465,763 200,000 258,386 83,220 175,165 490,598
5 490,598 350,000 356,685 105,075 251,610 588,988
6 588,988 - 289,280 73,623 215,656 373,332
7 373,332 - 205,023 46,666 158,357 214,975
8 214,975 - 154,470 26,872 127,598 87,377
9 87,377 - 98,299 10,922 87,377 -
10 - - - - - -
11 - - - - - -
12 - - - - - -
13 - - - - - -
14 - - - - - -
15 - - - - - -
Page 36 of 37
Cash Flow Projections - Repayment Schedule - Finance Leases

Repayment Term 4.0
Interest Only No
Year
0 - 425,000 - - - 425,000
1 425,000 - 138,454 48,875 89,579 335,421
2 335,421 - 138,454 38,573 99,880 235,541
3 235,541 - 138,454 27,087 111,367 124,174
4 124,174 - 138,454 14,280 124,174 -
5 - - - - - -
6 - - - - - -
7 - - - - - -
8 - - - - - -
9 - - - - - -
10 - - - - - -
11 - - - - - -
12 - - - - - -
13 - - - - - -
14 - - - - - -
15 - - - - - -
Page 37 of 37

Cash Flow Annual Sample

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Cash Flow Annual Sample

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Excel Skills | Annual Cash Flow Projection Template

The following sheets are included in this template:

Business Name & Reporting Periods

Turnover & Gross Profits

Depreciation & Amortization

Current Assets - Inventory

Current Assets - Trade Receivables

Current Assets - Loans & Advances, Other Receivables

Current Assets - Cash & Cash Equivalents

Equity - Shareholders Contributions, Reserves

Equity - Retained Earnings

Non-Current Liabilities - Loans 1 to 3, Leases

Current Liabilities - Bank Overdraft

Current Liabilities - Trade Payables

Current Liabilities - Sales Tax

Current Liabilities - Payroll Accruals

Current Liabilities - Other Accruals, Other Provisions

Current Liabilities - Provision for Taxation

Current Liabilities - Dividends Payable

Balance Sheet Errors

Balance Sheet Workings

Cash Flow Statement

Loan Amortization Tables (Loans1 to Loans3 & Leases sheets)

Help & Customization

Financial Assumptions - Income Statement

Financial Assumptions - Balance Sheet

Interest Cover 3.02 3.43 4.31 5.87 7.12

Days in year 366 365 365 365 366

Current Ratio 3.9 3.9 3.5 3.4 4.0

Interest Rate 10.25%

Interest Rate 9.25%

Interest Rate 12.50%

Interest Rate 11.50%

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