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.
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