In reviewing this cash flow statement, I can see that it's almost finished I've got cash flow from operations, cash flow from investing activities, from financing activities And if I add all three together, I get to my net cash flow Add that onto my beginning cash of 12, I get to ending cash of 30.3 and then that can go up to my balance sheet However, we did have a missing figure, the change in operating working capital That cash flow has not been included yet, we need to do a calculation for that So let's go up above the income statement where we do have some space for that So here's the operating working capital calculation. We need to fill some figures in for period minus 1, period 0 and period 1 All of these figures will come from the balance sheet Let's grab accounts receivable for period minus 1 There's my accounts receivable of 8 I'm going to copy that to the right and luckily if I copy that down, the inventory figures appear as well Let's find accounts payable Accounts payable is 3 If I copy that to the right, I get period 0 and period 1 and if I copy it down, accrued expenses appears So what are we doing? Operating working capital asks, how much cash is tied up in the business? Particularly, tied up in operations And here we've got four operating items from the balance sheet: Accounts receivable, inventories, payable and expenses The company's operations couldn't work if we didn't have these items. These are operating items So how much cash is tied up? Well, we've got cash tied up in accounts receivable My customers have got my cash, that is definitely tied up cash Is cash tied up in inventories? Yes, absolutely it is It's tied up as stock in inventory, I can't get access to that cash at the moment But cash is not tied up in accounts payable, accounts payable is where I have not paid my supplier I've actually got their cash, this is almost the opposite of tied up cash. This is supplied cash. So if I think I've got tied up cash of 12 at the moment, the 8 plus the 4. I can now subtract 3 of that. I've got a free source of cash The same is true for accrued expenses, again I haven't paid my suppliers So I will subtract off that 4, so I've got tied up cash of 12 (8+4) Subtract the 3, subtract the 4, overall tied up cash in operations is 5. And I'm going to copy that to the right. Now I'm looking for the cash flow impact here, I had tied up cash of 5. The year after I've got tied up cash flow of 4. So tied up cash of 5, down to tied up cash of 4, that is a release of cash, that is a positive 1 of cash coming into my bank account, great! But in my cash flow statement, we're looking from period 0 to period 1 So tied up cash went from 4 to 4.2 Is that cash going into my bank account or out? That is cash going out of my bank account of minus 0.2 So let's go back down to our cash flow statements The change in operating working capital is going to be the 4 minus the 4.2 I want an outflow of cash of 0.2 and there we've got it My cash flow statement is now done, that flows all the way down to the bottom of my cash flow statement giving me ending cash of 30.1 Let's put that into the balance sheet, let's see if my balance sheet balances I press equals, 30.1 Scroll down to the bottom of my balance sheet, please please please balance. And it does, fantastic! So I finished up my cash flow statement by doing change in operating working capital I put the resulting cash into the balance sheet and my balance sheet is now balanced Is there anything better in the world? I don't think so To completely finish it, I now want to take all of my figures from period 1 (so I'm going to copy from the calculations down) I select all of those in period 1, I now select to the right and I'll now press "CTRL + R" to copy all of those calculations to the right Just to do see what figures we've got There's my income statement, you should have net income of 26.8 in the final period And there's the bottom of my balance sheet, balancing in any period And there's the bottom of my cash flow statement and you can see the ending cash in each period