Creating a quick cash flow statement

Now that you have learned how to create a cash flow statement and everything you need to do, let's go ahead and prepare a simple statement for a specific scenario. Let's assume that you are the founder of a web design company and you need to keep tabs on everything that you spend money on, because as a start-up, capital is vital to the development of the company. We will create a simple cash flow statement to track the first year of expenses, so that we can understand whether it will be profitable to proceed with the company later down the line:

1. We will begin by creating two cells at the top, with the financial year and the cash invested at the beginning of that year, as follows:

2. As we have learned in this chapter, cash flow will be divided into three main sections, the first of which is operational activities. So, let's...