cash budget
DESCRIPTION
Cash Budget in AccountingTRANSCRIPT
-
Ca
sh
Bu
dg
et
Ca
sh
Bu
dg
et O
ve
rvie
w
Shor
tage
of
ca
shsh
ou
ld b
e fo
rese
en
an
d a
ctio
ne
d
Ca
sh
is i
mp
ort
an
t -
we
n
ee
d t
o e
nsu
re t
ha
t th
e
busin
ess
does
not
run
ou
t o
f ca
sh
No
te -
ca
sh
in
th
ese
circu
mst
ance
s in
clude
the
ba
nk b
ala
nce
Ca
sh
Bu
dg
et O
ve
rvie
w
Sim
ple
Pro
ce
du
re
De
term
ine
Ca
sh
Ba
lan
ce
De
term
ine
Re
ce
ipts
fro
mDe
btor
s ea
ch
mon
thDe
term
ine
Paym
ents
expe
cted
ea
chm
onth
Pro
cedu
re
Tem
pla
teR
ece
ipts
| M
on
th 1
| .
..| M
on
th x
| T
ota
l$M
n
Tota
l
Pa
ym
en
ts | M
on
th 1
| .
..| M
on
th x
| T
ota
lTo
tal
Su
mm
ary
| M
on
th 1
| .
..| M
on
th x
| T
ota
Ne
t In
flo
ws/O
utf
low
s
(Re
ce
ipts
-
pa
ym
en
ts)
b
ala
nce
b
/f
b
ala
nce
c/f
Paym
en
tsC
ash
Pu
rch
ase
sC
red
it P
urc
ha
se
sO
verh
eads
Divid
ends
Inve
stm
ent
Sala
ries
Com
pute
r Eq
uip
men
tTa
xatio
nPr
incip
alIn
tere
st
Sce
na
rios
Am
ou
nt
% o
f sa
les
colle
cted
Disc
ounts
gi
ven
for p
ayin
g e
arl
y
wh
en
ove
rhe
ad
s
inclu
de
d
ep
recia
tio
n,
the
de
pre
cia
tio
n m
ust
be
de
du
cte
d f
rom
th
e
over
head
s an
d th
e re
su
ltin
g f
igu
re i
s p
lace
d
in t
he
ca
sh
bu
dg
et.
D
ep
recia
tio
n i
s a
no
n c
ash
ite
m h
en
ce
it
is d
ed
ucte
d
an
d le
ft o
ut
Re
ceip
tsCa
sh Sa
les
Cred
it Sa
les
Capi
tal
Divid
ends
Inte
rest
In
com
eCo
mm
issio
n In
com
e
Diff
ere
nt S
um
ma
ries
Lo
ng
Fo
rma
t -
use
wh
en
min
imu
m b
ala
nce
exis
ts
Ne
t In
flo
w/(
Ou
tflo
w)
Bala
nce
b/
fLo
an
Repa
yment
Prin
cipa
lIn
tere
st
Wh
en
qu
estio
nd
oe
s n
ot
me
ntio
nm
inim
um
ca
sh
ba
lan
ce
use
SH
OR
T s
um
ma
ry fo
rmat
Ne
t In
flo
w/(
Ou
tflo
w)
Bala
nce
b/
fBa
lance
c/
fIf
usin
g t
he
sh
ort
en
ed
su
mm
ary
fo
rm,
an
d
the
pro
ble
m m
en
tio
ns l
oa
n
or
bo
rro
win
g,
pla
ce
th
e b
orr
ow
ing
in t
he
re
ce
ipts
se
ctio
n
(sin
ce
wh
en
yo
u b
orr
ow
yo
u r
ece
ive
mo
ne
y).
If r
ep
ayin
g p
rin
cip
al a
nd
in
tere
st,
it
will
be
re
fle
cte
d
in t
he
pa
ym
en
ts s
ectio
n.