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PART VII — ACCOUNTING🔵 Intermediate

Is This Company Actually Generating Real Cash?

Cash Flow Statement

Tracks the actual movement of cash in and out — because profit on paper doesn't pay the workers or service the loan.

accountingcash flowliquidityoperatinginvestingfinancingfree cash flow

Live Result

$58,625

ƒ: operating_cf + investing_cf + financing_cfraw: 58625.0

ƒ(x)

Use variable names from the panel above (e.g. FV, r, n) — or type numbers directly: 10000 / (1 + 0.08)^10

operating_cf

Cash generated from core farming operations ($)

operating_cf = 88625

investing_cf

Cash spent on long-term assets ($, negative = outflow)

investing_cf = -20000

financing_cf

Loan repayments and owner contributions ($)

financing_cf = -10000

net_profit

Net income from the P&L ($)

net_profit = 76125

depreciation

Non-cash depreciation expense ($)

depreciation = 10000

💡 You can also enter values directly in the formula: 10000 / (1 + 0.08)^10

⬇ Export Calculation

Exports a plain .txt file with your expression, formula, all variable values, result, and educational notes — ready to paste into any report, Word doc, Notion, or Google Docs.

The exported file includes the formula in standard mathematical notation — you can paste it directly into Excel, Google Sheets, or back into FinanceSheep.

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Learn: Cash Flow Statement

PART VII — ACCOUNTING · Educational Guide

The Core Idea

Jake made $76,125 net profit — but his bank account rose by $58,625, not $76,125. Why? Profit and cash are not the same thing. The cash flow statement reconciles them, and shows exactly where cash came from and where it went across three sections: Operating, Investing, and Financing.

How It Works

Net Change in Cash = Operating CF + Investing CF + Financing CF. Operating CF starts with net profit and adjusts for non-cash items (add back depreciation) and working capital changes. Investing CF captures capex and asset sales. Financing CF captures loan draws, repayments, and equity contributions. Operating CF is the most important section — consistently negative operating CF means the business model doesn't generate real cash.

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Real-World Example: Jake's cash flow statement: Operating CF = $76,125 net profit + $10,000 depreciation − $15,000 receivables increase + $17,500 payables increase = $88,625. Investing CF = −$20,000 (grain auger purchase). Financing CF = −$10,000 (USDA loan repayment). Net Change = $88,625 − $20,000 − $10,000 = $58,625. Opening cash $0 + $58,625 = $58,625 closing cash. Free Cash Flow = $88,625 − $20,000 = $68,625.

Is This Company Actually Generating Real Cash?

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