Anchor Point Retail — Cash Flow

Two routes to the same cash number

Four years of increasing complexity — Year 1 is cash-only, Year 4 adds credit sales, credit purchases, closing inventory, and a Bad Debt Expense — each year building the Direct method cash flow (actual receipts and payments) and the Indirect method (net income adjusted for non-cash items) side by side.

The two methods must always land on the identical change in cash, because they're just two different routes to the same number.

Using the calculator

1. Enter the period's cash purchases/sales, credit sales/purchases, receipts and payments on receivables/payables, and depreciation in the input cells.
2. The Income Statement, Direct-method Cash Flow, and Indirect-method Cash Flow all build from those same numbers.
3. The two methods' Change in cash totals must always match — that's the built-in check.