c r e at i n g t h e p r o f i t & lo s s a c c o u n t a n d c a s h f lo w s tat e m e n t Creating the cash flow statement The cash flow statement as a list Of the 17 entries we made on SBL's balance sheet, 11 affected the amount of cash the company had at the end of the year. These are shown in Table 4.3. Four of these entries increased the amount of cash the company had; the other seven (shown in brackets again) decreased the cash balance. The net effect of these 11 entries was to increase cash between the start and end of the year by £4,000. From the balance sheet, we know that the cash in the company rose from zero to £4,000 during the year. The statement in Table 4.3 just shows how this happened. This is your cash flow statement.