How to Draw a Cash Flow Diagram in Excel (Easy Steps)

Introduction to Cash Flow Diagrams

• Cash flow diagrams represent cash transactions over time.
• They’re commonly used in finance, engineering, and economics.
• Key elements include initial investments, maintenance costs, project earnings, and salvage value.
• Engineers and management accountants use them for decision-making and break-even analysis.

Dataset Overview

• Suppose we have an XYZ group dataset with income and expense information.
• Columns B and C contain descriptions and running balances, respectively.

Step 1 – Create a Dataset

• Set up a dataset with relevant parameters (income, expenses, etc.).

Read More: How to Calculate Annual Cash Flow in Excel

Step 2 – Insert a Chart

• Select the data range (e.g., B4 to C14) for your cash flow.

• Go to the Insert tab, choose Charts, and select Recommended Charts.

Read More: How to Calculate Incremental Cash Flow in Excel

Step 3 – Using a Waterfall Chart

• In the Insert Chart dialog, select All Charts.
• Choose the Waterfall option and click OK.

A cash flow diagram has been created using the dataset.

Read More: How to Calculate Discounted Cash Flow in Excel

Step 4 – Add a Title

• Give your chart the title Cash Flow Diagram.

Read More: How to Forecast Cash Flow in Excel

Step 5 – Format the Diagram

• Click anywhere on the chart to format it.
• Customize labels, colors, and other visual aspects.

Read More: How to Calculate Cumulative Cash Flow in Excel

Cash Flow Diagram Calculator

• Use the workbook as a calculator.
• Explore the Calculator sheet, input values for sales, materials, labor, etc.
• It will calculate total revenue based on the cash flows.

Download Practice Workbook

You can download the practice workbook from here:

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• How to Calculate Free Cash Flow in Excel
• How to Calculate Payback Period in Excel
• How to Calculate Payback Period with Uneven Cash Flows
• How to Apply Discounted Cash Flow Formula in Excel
• How to Calculate Operating Cash Flow in Excel

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