Word Count : 1311

---

A cash budget is a financial statement that estimates the expected cash inflows, cash outflows and resulting cash balance of a business for a specified future period. It is an important tool of management accounting because it helps managers plan and control the cash position of the organisation. Unlike a profit and loss statement, which records revenues and expenses according to accounting principles, a cash budget focuses specifically on the timing of actual cash receipts and payments. Thus, it helps management determine whether sufficient cash will be available to meet obligations when they become due. The main purpose of a cash budget is to forecast the cash position of a business. A firm may earn profits but still face a cash shortage if customers delay payments or if large payments become due before cash is collected. Similarly, a business may have sufficient cash temporarily even when its profitability is low. Therefore, cash planning is essential for maintaining liquidity and ensuring smooth business operations. A cash budget generally covers a particular period, such as a month, quarter, half-year or year. It is prepared by estimating cash receipts and cash payments during each period. The opening cash balance is added to expected cash receipts, and expected cash payments are deducted from the total. The resulting figure represents the expected closing cash balance. The basic structure of a cash budget can be expressed as: Opening Cash Balance + Expected Cash Receipts − Expected Cash Payments = Closing Cash Balance The opening cash balance represents cash available at the beginning of the period. Cash receipts include collections from cash sales, collections from credit customers, interest received, dividends received, loans raised, issue of shares, sale of assets and other sources of cash. Cash payments include payments for purchases, wages, salaries, rent, administrative expenses, selling and distribution expenses, taxes, capital expenditure, loan repayments, interest and other cash expenses. Preparation of a cash budget normally begins with forecasting sales. Sales are classified into cash __________ ________ ______ ______ ___ __________ _______ ___ ______ ________ __________.
____ ___ ________ _________ ______ ___ _____ ___ _____ _____ _______ ___.
_____ _____ ___ _________ ________ _________.
____ ______ _____ _________ _______.
__________ __________ _______ __________ _________ _________ _________ _________.
_______ __________ ____ ________ _______ ______ ________ __________.
___ ________ ____ __________ _______ ____ __________ ___ ______.
_______ ____ __________ _____ _________ ______ ________ __________ ______ _________ ____.
_________ _____ _________ _______ ____ ________ _______ ______ ____ ____ _____ ___.
__________ _________ ____ _____ ______.
_______ _______ ____ ____ ____ ________ ______ _________ _____ _____.
____ _________ _______ _________ ____ ____ _____ _____ _________ ________ _________ ___.
___ _____ _____ ______ _______ ______.
________ __________ ____ ___ _______ ____.
___ ____ ______ ________ ________.
_________ ___ ____ _________ ____ ________ _____.
____ __________ ________ ______ ___ _______ ________ _______ ___ ________.
_______ ____ ____ _____ __________ ______ _________ ________ ________ _________ _________.
________ _____ __________ _________ _________ ___ ________.
________ _____ _______ __________ ______.
_______ ________ ______ _______ _____ ________.
____ ______ _____ ____ ____ _____ ______.
__________ _______ __________ ____ _____ ______ ______.
____ ___ _____ __________ _______ ________ _______ ________ _____.
_________ _____ ______ _________ _____ ___ ____ _______ __________ _______ __________.
_________ ________ ________ _____ _________.
___ __________ ________ _________ _________ _______ ______ ____.
_____ _______ _________ ________ ________ ________ ___ _______ ____ ____.
___ ______ ___ _____ ____ ______ ______ _________ ______ ______ _____.
______ _____ ___ ___ __________ __________ _________ ______ __________ _________ ______.
______ ______ _____ ______ ________ ___ ____ ________ __________ _________ ____ __________.
__________ ____ ____ ____ ____ _______ ____ ________ __________ _________.
______ _________ _____ __________ _____ ______ ____ _____ ______ _________.
_____ ________ _____ _____ ____ ______.
__________ ________ _____ _____ __________ ____ ______ _______ _______ ________ ______.
___ _______ ________ _____ ________ _____ ______ _____ _____ ________.
______ ______ _____ ___ _______.
________ _____ __________ __________ ______ ____ ________ _______ ________ __________ ___.
___ _______ ________ _____ ___ _____ ___ ______ _______.
_______ __________ _________ __________ ___ ____ ___ ___.
__________ ___ __________ ______ __________ ___ _________ __________ ______ ____ __________ _____.
________ __________ __________ ________ ________.
__________ ______ _______ ________ _________ _________ _______ ___ _________.
____ ____ ________ _________ ___ ___ ______ ___ ____ ______ _____ ___.
___ ______ ______ ___ _________ _________ _________ ______ _______ _____ __________ _____.
____ ________ _______ ________ _______ _______ _____.
________ ___ _______ ________ _____ _______ ____ ____.
_________ _______ _____ ___ _______ _______ ________.
_________ _______ ___ ____ ________ _____ _______ ________.
___ _________ _________ ____ ________ ___ ___ ______.
____ _______ _______ __________ _________ __________ ______ _________ _________.
_____ ______ __________ ________ _______ _______ ___ __________ _______ _______ ___ __________.
______ ________ ______ _______ ______ ______ __________ _______ ______ _____.
___ _________ ______ ________ __________ __________ ______ ______ ____ _________ ___.
___ __________ ______ __________ _______.
_____ ________ ________ _______ _____ ______ __________.
___ _________ _____ ________ _________ _________ _______ _____.
___ ____ ____ _____ ___ _____ ____.
_______ _________ ________ _____ _____ __________ ___ ______.
__________ ____ ______ __________ _____.
_________ ________ ________ _________ _________ ____ _____.
______ _______ __________ ____ __________ _________ _____ ________ ____ _________ ______.
_________ ________ ______ _______ ____ _____ _____ ________ __________ ___ _________ _______.
__________ __________ ________ ________ ___ ___.
__________ _______ ___ _______ _______ ___ ______.
________ ___ ______ ___ _________ _____ ______ ____ _________ ________.
______ _______ ____ _______ _____.
_________ _____ ____ ________ ______ ________.
________ _______ ___ ______ _______ _________ ___ ________ ______ ____ _________.
______ ______ __________ ___ _____ ________ _______ _________ _________.
________ _____ ________ _______ ____ __________ _________ ____ ________.
__________ _______ ___ ________ _________ ______.
____ ___ _________ _____ ______ _______ ___ _____ ________ ____.
__________ _________ ______ ___ ___ ____.
________ __________ _____ ________ ___.
_______ _____ ____ _______ _________ _______ _____ ________ ________ ____ _____.
______ ____ ____ _________ _______ ____ __________ ______.
_____ ________ ___ ______ ______ _____ _____ __________.
_____ _____ __________ ________ ________ ________ ________.
____ _________ ____ _____ __________ _____ ___ _____ ______ ___ ________.
____ ___ ________ __________ ______ __________ ______.
_____ ____ ___ _________ ____ ________ ______ _________ _________ ________.
______ _____ ______ ____ _________ ___ ____ __________ _______ ________.
__________ __________ _______ _______ __________ _________ __________.
________ _____ ________ ______ ____.
_________ _______ ____ ________ ___ _________ ________ ________.
_____ _____ __________ ___ _________ _____ _________ __________ ________ _________ _______ ________.
___ _______ ______ ______ _____ _____ ______ ______ ________ ________ _____ __________.
______ ______ ___ ___ ___ ______ ______ ________ _____ ____.
____ ________ _______ ___ ____.
__________ ______ _________ _______ _________ ____ ___ _______ ______.
_____ ___ ________ _______ _______ _____ __________ __________ _________ _____.
_________ ____ ___ ________ __________ ___ _______ __________ ___.
__________ __________ ____ ___ ___ ________ ______ __________ _______ __________ ____.
__________ __________ ______ _________ __________.
_______ _______ __________ ______ ______ ______ ____ ______.
_______ ________ _________ __________ ___ _____ __________.
__________ ___ _________ ____ ________ ________ ____ ______ _________.
_____ _____ ____ _________ _______.
_______ _____ _______ _________ _______ _____ _____ _______ ___ ______ __________ _______.
__________ _______ ___ ____ ______ ___ ___ ________ ______ ____.
_________ ___ ______ _____ _____.
______ ____ _____ ____ ___ _________ ___ ___ _____ _______ ________ ______.
_______ ________ ___ __________ __________ ___ ____ __________.
________ ________ __________ _______ _________ ___ ______ ______.
____ ____ _______ _______ ________ __________ ___ ___ _____ ____ ____ ________.
___ ___ ___ ____ ____ ________ ______.
________ _________ _____ _____ ______ ________ ________.
______ ______ ______ ____ ____.
____ _____ ________ __________ ______ _______ ________.
______ ________ ______ ______ _________ ___ ___ _______.
______ ______ __________ ________ _____ ____ ________ _______ __________ ________ _________.
____ _____ _____ _____ ____ ________ ______ _____ __________ __________ ________.
___ _____ _________ ___ __________ ____ ______ _______ _______.
_______ __________ ________ ________ __________ ______ _________ _______ _________ ___ ______ __________.
__________ _________ _____.
Get Full Answer on WhatsApp