What it is
The statement of cash flows under ASC 230 explains the change in cash, cash equivalents and restricted cash during the period, in three sections: operating, investing and financing. Under the indirect method, operating cash flow starts from net income and adjusts for noncash items and changes in working capital.
This workbook builds the statement from beginning and ending balance sheet inputs plus a few income statement and fixed asset details, and proves the result: the net change in cash per the statement must equal the change in cash per the balance sheet.
When to use it
- Preparing year-end or interim financial statements for a private company.
- Auditing or reviewing a client-prepared statement of cash flows.
What’s inside
- Balance sheet inputs: beginning and ending balances with automatic changes
- Operating activities: net income, depreciation, gains, and working capital changes
- Investing and financing activities
- Cash proof check against the balance sheet with conditional formatting
- Supplemental disclosures: interest paid, income taxes paid, noncash investing and financing
Standard cited
This template follows ASC 230. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Is restricted cash included in the statement of cash flows?
Yes. Since ASU 2016-18, the statement explains the change in total cash, cash equivalents and restricted cash, and a reconciliation to the balance sheet line items is disclosed when they are presented separately.
Which supplemental items must be disclosed under the indirect method?
Interest paid (net of amounts capitalized) and income taxes paid, plus noncash investing and financing activities such as assets acquired under finance leases or debt converted to equity. ASU 2023-09 separately requires income taxes paid to be disaggregated by jurisdiction in the income tax footnote, for annual periods beginning after December 15, 2024 for public business entities and after December 15, 2025 for all other entities.
Related templates
- Trial Balance Template with Mapping (Excel)
- Fixed Asset Rollforward (Excel)
- Year-End Close Checklist (Excel)
Last updated 11/04/2026. All free templates.