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Part 1 - Cash Budget1.Discuss the purpose of the cash budget.The cash budget summarises cash receipts and expenses provided for in operating budgets. Its key purpose is to make available the status of the company's cash situation at anypoint of time. It aids in finding the period in which a company might require additional cash so credits can be discussed in a well-timed manner, and identifies when excessive cash will be available for paying off loans or to invest in other assets. The cash budget also helps the company management to keep cash balances in reasonable relationship to its needs and aids in avoiding unnecessary idle cash and possible cash shortages. 2. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?