Cash forecasting and budgeting, Managerial Accounting

Assignment Help:

A cash budget is one of the main important devices to plan and control cash payments and receipts. In preparation of a cash budget the subsequent points are considered.

  • Credit period permitted to debtors and the credit period permitted by creditors to the firm for goods and services.
  • Payment of dividends and taxes, and the month wherein such payments are to be made.
  • Non-consideration of non-cash transactions or depreciation. This type of transactions has no signify on cash flow.
  • Minimum cash balance required and the amount of credit or overdraft limit permitted by the banks.
  • Plan to deal along with cash surplus and cash deficit situations.
  • Debt repayment as time and amount.

In the figure 2 highlights the cash shortage and cash surplus position over the period of cash budget for preplanning to acquire corrective and essential steps.

1543_Cash Forecasting and Budgeting.png

Figure: Cash surplus and cash deficit situations


Related Discussions:- Cash forecasting and budgeting

Illustration of graphic analysis , Illustration of Graphic Analysis Th...

Illustration of Graphic Analysis The four steps of cost-volume-profit analysis can be employed to graph and study any cost-volume relationship. Suppose that you have been aske

What is cost unit, What is Cost unit While the cost centres assists in ...

What is Cost unit While the cost centres assists in ascertaining costs by location, person, equipment, operation or process, cost unit is a unit of product, service or a combin

Steps in strategic cost analysis, Steps in Strategic Cost Analysis 1) Rec...

Steps in Strategic Cost Analysis 1) Recognize the suitable value chain and allocate costs and assets to it. 2) Identify the cost drivers of each value activity and how they int

Stock turnover ratio, opening stock 19000 closing stock 21000 sales 200000 ...

opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio

Homework, costs/per unit labor ... $ 4 materials ...5 fixed cost... $ 12 ...

costs/per unit labor ... $ 4 materials ...5 fixed cost... $ 12 determine the break even point in units if the seeling price is $ 19 determine the break even point in sales at

Interpratation of variance, INTERPRATATION OF VARIANCE Controllability,...

INTERPRATATION OF VARIANCE Controllability, Materiality and Trend are the interpretation of variance. The point of comparing flexed budget and real figures is to see what corre

Cost advantage and value chain , Cost Advantage and Value Chain Cost a...

Cost Advantage and Value Chain Cost advantage is one of the two types of competitive advantage a firm may possess. Cost is also of vital significance to differentiation strate

Cost-volume profit analysis , COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCT...

COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCTION You can employ cost-volume-profit analysis to examine the natural relationship among cost, volume, and profit in pricing decision

Activity –based techniques, Explains how activity –based techniques can be ...

Explains how activity –based techniques can be used to improve performance

Cost-price-total revenue and quantity changes, Quasar Computers are the fir...

Quasar Computers are the first all optical notebooks and their profit largely affects the manipulations in cost, price, total revenue and quantity changes. The market analysis show

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd