Reference no: EM132548901

Question 1: How will the following information assist in cash budget?:

1. the balance sheet
2. the bank balance at the beginning of the budgeting period
3. expected cash and credit sales
4. payments from debtors
5. credit conditions for debtors
6. expected cash and credit purchases of trading stock
7. payments to creditors
8. credit conditions for creditors and credit purchases
9. other specified payments and receipts

Question 2: Estimated cash to be received mainly from debtors for cash sales and collections for credit sales during a month

Question 3: Estimated cash to be paid for cash purchases and the payment of credit purchases to creditors for a particular month

1. The bank balance at the beginning of the month
2. The estimated bank balance at the end of the month (this closing balance is the new opening balance for the following month)