Annual Forecast Model

Cash Flow Statementother revenue
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6 years ago
#1
Sean Wong X 0
SW
Annual Forecast Model

Hi,

Referring to video 3 on financial statements, is there a particular reason why we need to seperate the impact on cash flows for other revenues and other expenses?

In the model, "other income" is listed under cash receipts while the others are listed under "Operation Cash Flows" - however, this allocation should not affect the Net Cash Flow from Operating Activities.

Thanks!

6 years ago
Michael Hutchens A+ 189

Hi Sean,

The example models and modules on the Modano website are a foundation for whatever you want to build, not an out-of-the-box solution, so feel free to change them or create your own modules as you feel necessary.

The Basic Annual Forecast Model example uses the Other Revenue & Expenses (Amounts) module in the Modano content library, which provides for assumptions to be entered allocating each other revenue and expenses category to one of 5 areas within the cash flow statement:

  1. Cash receipts
  2. Cash payments
  3. Operating cash flows
  4. Investing cash flows
  5. Financing cash flows

As I think you're alluding to, cash receipts and cash payments are actually both within the operating cash flows section of the cash flow statement, but we've shortened 'Other operating cash flows' to simply 'Operating cash flows' in the allocation drop down boxes because the text was so long. So it looks nice and compact but is a little misleading in this regard...

You can see the allocation assumptions below:

Feel free to change the terminology in the example model if you like. You will need to unhide the lookup sheet containing the Cash Flow Impact lookup table and simply edit the text.

I hope this helps/clarifies things for you.