Short term cash forecasts, Managerial Accounting

The significant objectives of short-term cash forecast are as given:

  • find out operating cash requirement
  • anticipating short term financing
  • Organization investment of surplus funds.

The short-term cash forecast assists in finding the cash requirement for a predetermined period to run a business. Under the absence of such information the finance manager would not be capable to decide upon the cash balances to be well-maintained. Besides to this the information specified earlier would also be needed to tie up with the financing bank so as to meet anticipated cash shortfall and also to draw strategies to invest surplus cash in securities along with suitable maturities. Some of the other purposes of cash forecast are as:

  • planning decrease of short and long term debt
  • scheduling payments in association with capital expenditure programmes
  • planning forward purchase of inventories
  • obtaining advantage of cash discounts offered through suppliers, and
  • guiding credit policy.
Posted Date: 4/9/2013 3:41:54 AM | Location : United States







Related Discussions:- Short term cash forecasts, Assignment Help, Ask Question on Short term cash forecasts, Get Answer, Expert's Help, Short term cash forecasts Discussions

Write discussion on Short term cash forecasts
Your posts are moderated
Related Questions
Collection float considers to the gap among the times, payment is made through the customer/debtor and the time while funds are obtainable for use in the company's bank account. In

a)    Does Ford report any investments carried as trading securities, available-for-sale securities, or held-to-maturity securities? If so, go over their significance to both the b

QUESTION:  PART A One of the divisions within Acme Manufacturing company is presently negotiating with another supplier regarding outsourcing component A that it manufac


Describe Financial budgets Financial budgets: financial budgets are concerned with cash receipts and disbursements working capital expenditure financial position and business o

Open Account Credit sales are usually on open account that implies which the seller ships the goods to the buyer and afterward sends the bill invoice. Consignment In th

Trinco Ltd (Trinidad & Tobago-T&T) has been negotiating a contract with a potential customer in Jamaica. Before the negotiations started the Jamaican company agreed to pay $10,000

where can I get the solution for the question on this link: http://www.expertsmind.com/questions/determine-the-cash-flow-budget-monthly-cash-disbursement-30145416.aspx I have att

importance of ratio analysis

Risk : Risk includes circumstances or events that may or may not take place though whose probability of occurrence can be predicted from the past records. In this atmosphere, t