Here we can see, that the Cash Flow Statement Labels have been provided for us. And we have our Operating Cash Flows, which include Net Income, D&A, and Changes in Operating Working Capital. We have Investing Cash Flows, which are just Capex, and then we have the Financing Cash Flows, which are Dividends Paid and Changes in Long Term Debt. When we're building our Cash Flow Statement, we are always going to start our build in the first forecast year, that's in 2022. We're never going to recalculate Historical Cash Flows, because things like M&A and Foreign Currency Moves, make it impossible to recalculate a Historical Cash Flow Statement. And M&A and Foreign Currency, are things that we don't usually forecast. So we're only ever gonna calculate a Forecast Cash Flow Statement. If we needed to analyze Historical Cash Flows, we could look at those in the latest financial statements. So we'll start in Column F and build our Cash Flow Statement from top to bottom, starting with Operating Cash Flows. This starts with Net Income, which we can grab from the bottom of our Income Statement.

So pop that in. And the next line in our Cash Flow Statement is Depreciation and Amortization. That's in my Balance Sheet Calculations, so I'm gonna grab that.

But you can see here that's shown as a negative number, and we want this to be an add-back in our Cash Flow Statement, so I'm gonna multiply that by minus one, and that gives a positive number in my Cash Flow Statement. The next item is Changes in Operating Working Capital, and those are in my Balance Sheet Calculations. If I scroll up to those, I can see that Net Operating Working Capital has increased during 2022 from 705.8 to 796.5, so I expect this to be shown as a Cash Outflow in my Cash Flow Statement. How can I achieve this? Well, I can take the prior year number, which is smaller, and deduct the current year number, which is larger, and when I press Enter, that gives me a negative in my Cash Flow Statement, which is exactly what I want. If instead, our Operating Working Capital had decreased during the year, let's say the Operating Working Capital had fallen to 300 during 2022, then this formula would give us a positive number. Because you would instead, be deducting a smaller number from a larger number. So the formula works where the Operating Working Capital is increasing or decreasing. We can now add all of our Operating Cash Flows together and that gives me Operating Cash Flows of 2,101.5. Next up, is Capital Expenditure, which is in my Balance Sheet Calculations, so I'll go and grab that number.

But we want this number to be shown as a Cash Outflow in our Cash Flow Statement. So I'm gonna multiply that by minus one, and then that gives me my total Investing Cash Flows of 568.9. Next up, are my Financing Cash Flows. And here, we only have Dividends Paid and Changes in Long Term Debt. This is because we're going to include the Revolver alongside Cash at the bottom of the Cash Flow Statement. The Dividends Paid, I can grab from our Balance Sheet Calculations, so I'll just scroll up to that.

And grab the Dividends Number, which is already shown as a negative there, and we want that as a Cash Outflow, so I don't need to change the sign. Last up in my Cash Flows is the Long Term Debt Issuance or Repayment. Let's go up to the Balance Sheet and have a look at that item.

Here we can see that Long Term Debt has decreased during 2022 and we therefore, need to show that as a Cash Outflow, because they must have used cash to pay down debt. How can I achieve that with my formula? If I take the current year number, which is smaller, and then deduct the prior year number, which is larger, that's going to give me a Cash Outflow in my Cash Flow Statement, which is what I want. I can then sum both of those numbers together to give Total Financing Cash Flows of minus 1,394.8. We can now add together all of our Cash Flows. That's our Operating Cash Flows, plus our Investing Cash Flows, plus our Financing Cash Flows, to give Net Cash Flow for the year. The final step is to use this Net Cash Flow to calculate the Ending Cash Balance, Net of the Revolver. For this, we need to identify the Ending Cash Balance, Net of the Revolver at the end of the previous year. I can do this using the prior year Balance Sheet. So I go up and grab the Cash Balance and deduct the Revolver Balance. Giving me a Net Revolver Balance of 612.9. This balance then becomes my beginning balance in my first forecast year. I can then add my Net Cash Flow to this, to give an ending balance on my Cash Net of my Revolver of minus 475.1. You'll notice that this balance has reduced since the previous year, and that's because the company has generated a positive Cash Flow during the year. We've now finished the Cash Flow Statement for the first forecast year. We should make sure that these numbers are correct and error free before we copy across. So I would always double check things like the signs on our numbers. For example, Capex and Dividends should always show as a negative, and D&A should always be shown as a positive. Also, we don't have any zero items here, but if you do, it's definitely worth stress testing those. For example, if debt is unchanged in your first forecast year, change your Assumption, so that there's a large debt repayment, and then check that this shows as a Financing Cash Outflow. I'm happy that these numbers are error free, so we can copy them across to the right, for our remaining forecast years Control R, and we've now finished our Cashflow Statement.