Financial statements
Cash flow statement builder
Build operating cash flow from profit and balance sheet movements, indirect and direct.
Harbour Tools Trading Co.
Prepare the statement of cash flows for 2026 from the comparative statements of financial position, the income statement and the notes. Every figure is generated from the company's ledger.
| Line | 2026 | 2025 |
|---|---|---|
| Non-current assets | ||
| Property, plant and equipment | 95,000 | 84,000 |
| Total non-current assets | 95,000 | 84,000 |
| Current assets | ||
| Cash at bank | 23,800 | 18,000 |
| Accounts receivable | 34,000 | 24,000 |
| Inventory | 36,000 | 30,000 |
| Prepayments | 3,500 | 3,000 |
| Total current assets | 97,300 | 75,000 |
| Total assets | 192,300 | 159,000 |
| Equity | ||
| Share capital | 70,000 | 50,000 |
| Retained earnings | 60,800 | 44,000 |
| Total equity | 130,800 | 94,000 |
| Non-current liabilities | ||
| Bank loan | 30,000 | 40,000 |
| Total non-current liabilities | 30,000 | 40,000 |
| Current liabilities | ||
| Accounts payable | 19,000 | 16,000 |
| Accrued expenses | 5,500 | 4,000 |
| Income tax payable | 7,000 | 5,000 |
| Total current liabilities | 31,500 | 25,000 |
| Total equity and liabilities | 192,300 | 159,000 |
Property, plant and equipment is shown net of accumulated depreciation.
| Revenue | 260,000 |
| Cost of sales | (144,000) |
| Gross profit | 116,000 |
| Salaries expense | (50,500) |
| Rent expense | (12,500) |
| Depreciation expense | (14,000) |
| Operating profit | 41,000 |
| Interest expense | (3,200) |
| Profit before tax | 37,800 |
| Income tax expense | (9,000) |
| Profit for the year | 28,800 |
Additional information
- Racking costing 20,000, with accumulated depreciation of 15,000, was sold for 7,000 cash.
- New equipment was bought for cash. A dividend of 12,000 was declared and paid.
- Interest paid is classified as operating (an IFRS policy choice for 2026 reporting, IAS 7.33). Dividends paid are financing. From annual periods beginning on or after 1 January 2027, the IFRS 18 amendments to IAS 7 require most non-financial entities to present interest paid in financing and to start the indirect method from operating profit.
Enter each reconciling line as it would appear in the statement. Amounts that reduce operating cash flow are negative: type -10,000 or (10,000).
| Line | Your amount | Check |
|---|---|---|
| Cash flows from operating activities | ||
| Net cash from operating activities | 0 | |
| Cash flows from investing activities | ||
| Proceeds from sale of equipment | 7,000 | |
| Purchase of property, plant and equipment | (30,000) | |
| Net cash used in investing activities | (23,000) | |
| Cash flows from financing activities | ||
| Repayment of bank loan | (10,000) | |
| Proceeds from issue of shares | 20,000 | |
| Dividends paid | (12,000) | |
| Net cash used in financing activities | (2,000) | |
| Net increase in cash | (25,000) | |
| Cash at 1 January 2026 | 18,000 | |
| Cash at 31 December 2026 | (7,000) | |
Learn it properly
- Cash flow statement: the indirect method · Financial Statements
- Cash flow statement: the direct method · Financial Statements
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