Cash Flow Statement

Most of the Cash Flow Statement is derived from the Income Statement and from Balance Sheet changes. Because of the likelihood of non-cash items in both of these statements reconciliation factors are built into non-cash items, changes in net working assets, cash movements, home-buy surplus/deficit. These are also essential because the input cash flow statements do not always articulate fully and correctly with the input Income Statement and Balance Sheets, because of defective input data.

Capital expenditure purchases, disposals and Social Housing Grant received are based on the user cash flow figures inputs but also reconciled to the respective amounts calculated from the user-input assumptions on changes in the number of units, build and land costs, disposal prices, SHG, demolition costs, etc.

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 inputs for new loans plus the funding deficit or surplus generated by the model to balance the cash flow. Changes in short-term debt and short-term cash are taken direct from balance sheet changes except that surplus cash generated will be used to increase cash balances once all debt is repaid.

For a discussion of the various detailed items see How the Forecast Works.