Week 6, LO 8 Demo

Week 6, LO 8 Demo - Week 6 Week 6 Skill Building...

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Week 6 Week 6 Skill Building Demonstration Problem 8 Prepare a Cash Budget . Learning Objective 8 The cash budget combines the data computed in the first 7 steps in the budget preparation process. The cash budget is comprised four major sections: 1. The cash receipts section. 2. The cash disbursements section. 3. The cash excess or cash deficiency section. 4. The financing section. The cash receipts section lists all of the cash inflows, except from financing, expected during the budget period. Generally, the major source if receipts are from sales. The cash disbursements section summarizes all cash payments that are planned for the budget period. These payments include raw materials purchases, direct labor payments, manufacturing overhead costs, and so on, as contained in their respective budgets. In addition, other cash disbursements such as equipment purchases and dividends are listed. The cash excess or deficiency section is computed as
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Week 6, LO 8 Demo - Week 6 Week 6 Skill Building...

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