Cash Flow Statement 
Most of the Cash Flow Statement is derived from the
Income Statement and the changes in the Balance Sheet.
SBIT (surplus before interest and taxation) and depreciation
are self explanatory. Capitalised repairs and maintenance
are shown here rather than as a part of capital expenditure.
Other non-cash items are taken from surplus on disposal
of fixed assets on the income statement.
Other income is not modelled.
The change in net working assets is taken from the balance
sheet changes in debtors and other current assets less creditors and other
current liabilities.
Interest received is assumed to be the same as on the
Income Statement but interest paid is adjusted for any
capitalised/accrued interest in the input assumptions.
Tax paid is assumed to be the same as tax charged. Any
current tax liability (or asset) arising from the timing difference is
included in creditors and other current liabilities on the balance sheet.
Most of the items under the capital expenditure heading
are calculated from the inputs on unit cost/prices and changes in unit
numbers during the year, the SHG assumptions and other fixed asset expenditure.
In fact, all the factors driving the balance sheet figures for fixed assets
and total capital grants are relevant here except the non-cash items of
revaluation and free land at fair value.
Home buy Grant/Loan Surplus/(Deficit) is derived directly from
two user inputs, namely average revenue deficit/surplus per loan granted
and number of loans granted each year.
Other financial purchases/sales are taken from the balance
sheet changes in financial investments which are likely to be zero in
the main.
Loan repayments are taken direct from the user input of scheduled
loan repayments. Increase in medium and long-term debt is
a composite of user's inputs for scheduled repayments and new loans plus
the funding deficit or surplus generated by the model to balance the cash
flow.
Changes in short-term debt and changes in cash are taken
direct from balance sheet changes except that surplus cash generated will
increase cash balances once all debt is repaid.
The other/dividends and changes in equity row
is not programmed.
The sundry balance sheet items such as pension assets and provisions that
are assumed to remain constant obviously have no cash flow impact.
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