Unformatted text preview: pare the financial budget. Cash Budget
The cash budget has the following major sections: available cash balance
available cash receipts disbursements
cash cash needed from (or used for) financing
cash ending cash balance
ending Cash Budget
Available cash balance
= Beginning cash balance
– Minimum cash balance desired.
Cash receipts depend on collections from
customers’ accounts receivable, cash sales,
and on other operating income sources. Cash Budget
Cash disbursements for purchases depend
on the credit terms extended by suppliers
and the bill-paying habits of the buyer.
Payroll depends on wage, salary, and
commission terms and on payroll dates.
commission Cash Budget
Disbursements for some costs and expenses
depend on contractual terms for installment
payments, mortgage payments, rents,
leases, and miscellaneous items.
Other disbursements include outlays for
fixed assets, long-term investments,
dividends, and the like. Cash Budget
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- Fall '11
- Expense, 50%, ten-year