1. Create an annual sources and uses of funds statement.
2. When the above statement is completed and the balances tie out:
   • Adjust the change in PP&E for the year's depreciation expense to calculate capital expenditures.
   • Consolidate the change in working capital accounts other than cash by adding together the changes in individual working capital accounts. BE ESPECIALLY MINDFUL OF USING THE CORRECT SIGNS.
   • Similarly, consolidate changes in other operating assets and liabilities that would not be accounted for in other cash flow categories (i.e., investing or financing).
   • Adjust the change in retained earnings to reflect its subcomponents and place those subcomponents in the appropriate "buckets" on the cash flow statement.
   • Reorganize the rest of the adjusted sources and uses information to complete a properly formatted cash flow statement, using the required categories of operations, investing and financing and reconciling to the year's change in cash.

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Cash Flow Statement Net income Depreciation \& Amortization Deferred taxes Operating cash flow Change in non-cash working capital Change in other operating liabilities Cash flow from operations Capital expenditures Other investments Cash flow from investing Repayment of debt Additional equity Dividends paid Cash flow from financing Change in cash