UCA Cash Flow Model

UCA Cash Flow or Uniform Credit Analysis cash flow is a variation of the FASB95 direct cash flow format. 

The UCA cash flow model has become a standard for the lending industry. It provides a slightly different view than the FASB 95 indirect and direct models.
 
The second column provides the general structure of the UCA cash flow statement. The third column shows the impact on cash.

The UCA model structure uses a version of the direct method with a detailed breakout of changes effecting cash. The structure makes it easy to determine key variables.

Note: Financing activities are broken into three sub-sections:

(1) Cash Pd for Dividends & Interest
(2) Current Portion LTD
(3) Total External Financing.

This structure allows the reviewer to separate debt service requirements from new financing activities.

UCA Cash Flow

Net Sales
Chg. in A/R-N/R Trade
Chg. in Bad Debt Reserve (-)
Cash Collected from Sales

Cost of Goods Sold
Chg. in Inventory
Chg. in A/P - Trade
Cash Paid to Suppliers

 

CASH FROM TRADING ACT



SG&A Expense (less: non-cash exp) 
Chg. in Prepaid Exp.
Chg. in Accrued Exp.
Cash Paid for Operating Costs

CASH AFTER OPERATIONS


Other Income
Current Income Taxes
Chg. in Income Tax Payable
Other Income (Exp) & Taxes Pd.

NET CASH AFTER OPERATIONS (NCAO)


Interest Expense (-)
Chg. in Interest Payable
Dividends - Common
Cash Paid for Dividends & Interest

NET CASH INCOME

CMLTD
Current Portion Long Term Debt

CASH AFTER DEBT AMORT

Chg in PPE
Chg in Furniture, Fixtures
Chg in Accum Deprec (-)
Cost of Goods Sold - Depreciation
Depreciation 

Gain(Loss) on Asset Sale
Chg. in Net Fixed Assets

Chg in Cash Value Life Insurance
Chg in Other Assets
Chg. in Investments

Cash Paid for Plant & Investments



FINANCING SURPLUS/(REQ)

Chg in Notes Payable - Bank
Chg in Equity
Chg in Long Term Debt
Total External Financing

CASH AFTER FINANCING

CASH

ENDING CASH & EQUIVALENTS

 

 



 

Impact on Cash

Sales (+)
Increase (-), decrease (+)
Increase (+), decrease (-) -contra acct.

Cash Collected from Sales
 

Cost of Goods Sold (-)
Increase (-), decrease (+)
Increase (+), decrease (-)
Cash Paid to Suppliers  (Should be Neg)


Cash Collected from Sales + Cash Paid to Suppliers


SG&A (-) Depreciation (+) Amortization(+)
Increase (-), Decrease (+)
Increase (+), Decrease (-)
Cash Paid for Op.Costs (should be neg)

Cash from Trading Act + Cash Paid for Op Costs

Other Income (+)
Current Income Taxes (-)
Increase (+), decrease (-)
Other Income (Exp) & Taxes Paid

Cash After Operations + Other Income (Exp) & Taxes Paid (NCAO)

Interest Expense (-)
Increase (+), Decrease (-)
Negative
Cash Paid for Dividends & Interest (Neg.)

NCAO - Cash Pd for Dividends & Interest

 Negative
 Negative

Net Cash Income - CMLTD or (CPLTD)

Increase (-), Decrease (+)
Increase (-), Decrease (+)
Increase (+), Decrease (-)
Negative
Negative

Gain (+), Loss (-)
Chg. in Net Fixed Assets

 

Increase (-), Decrease (+)
Increase (-), Decrease (+)
Chg. in Investments

Usually Negative - unless a major liquidation
 

 

Sum of previous transactions

Increase (+), Decrease (-)
Increase (+), Decrease (-)
Increase (+), Decrease (-)
Sum of above

Financing Surplus/(Req) + Ext Financing

Beginning Cash

Ending Cash 

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