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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