Objective 4 objective prepare the financial budget

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Unformatted text preview: pare the financial budget. Cash Budget Cash 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 Cash Available cash balance = Beginning cash balance – Minimum cash balance desired. Minimum Cash receipts depend on collections from customers’ accounts receivable, cash sales, and on other operating income sources. Cash Budget Cash 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 Payroll commission terms and on payroll dates. commission Cash Budget Cash 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 Cash Management d...
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This note was uploaded on 09/08/2013 for the course ACCOUNTING 201 taught by Professor Smith during the Fall '11 term at Cleveland State.

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