Anthony Burkhardt's Ch23-PowerPoint

Seeitemsinredinthecashbudgetbelow

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Unformatted text preview: terials Budget, Direct Labor Budget, Manufacturing Overhead Budget, and Selling and Administrative Expense Budget) Chapter 23-8 Financial Budgets: Cash Budget Financial Budgets: Cash Budget Shows anticipated cash flows anticipated cash flows Often considered to be the most important output in preparing financial budgets budgets Contains 3 sections: (1) cash receipts , (2) cash disbursements, & (3) financing. (See items in red, in the Cash Budget, below.) Shows beginning and ending cash balances Basic Format Chapter 23-9 Financial Budgets: Cash Budget Financial Budgets: Cash Budget Cash receipts Section Cash Section Includes expected receipts from the principal sources of revenue – usually cash sales and collections on credit sales cash collections (Prepare a Schedule of Expected Collections from Customers) Shows expected interest and dividends receipts as well as proceeds from planned sales of investments, plant assets, and capital stock Cash disbursements Section Cash Section Includes expected cash payments for direct materials, direct labor, manufacturing O/H, taxes, dividends, plant assets, etc. (Prepare a Schedule of Expected Payments – such as DM) Financing Section Section Shows expected borrowings and repayments of borrowed funds plus interest to prevent cash from being below...
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This document was uploaded on 03/23/2014.

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