Cash Budget Four Sections Assignment Help
Receipts Section: It includes the beginning cash balance, cash collections from customers, and other receipts. Besides financing income, this section lists all other sources that except to dispose income within the budgeting period. According to the business assignment help experts, It can be divided in several categories such as income from sales, labor etc.
Cash Disbursements Section: All cash payments that are planned for the budgeted year are included in this section. It includes payment that will make for raw material, direct labor, overheard cost, equipment purchase, dividends etc. It helps to determine overall expenditure for running a business (Shim & Siegel, 2008).
Cash Surplus (Deficit) Section: This section of cash budget exhibits the difference between above two sections. In case of budget deficiency, organization plans to borrow extra money and in case of budget surplus, it enables to plan how the extra money could be invested in most suitable option.
Financing section: It includes all the borrowings and repayments that are expected by a business during the budgeted period. It helps to maintain the loan that has taken to run business activities (Hansen, Mowen & Guan, 2007). It controls both the amounts that a business has repaid and the amounts it owns.
Following is the example of cash budget that includes all above sections:
For example of cast budget please contact us at case study assignment help experts.
Hansen, D.R., Mowen, M.M. & Guan, L. (2007). Cost Management: Accounting & Control (6th ed.). USA: Cengage Learning.
Jackson, S.R., Sawyers, J.R. & Gregory, J.B. (2008). Managerial Accounting: A Focus on Ethical Decision Making (5th ed.). USA: Cengage Learning.
Rasmussen, N.H., Eichorn, C.J., Barak, C.S. & Prince, T. (2003). Process Improvement for Effective Budgeting and Financial Reporting. USA: John Wiley & Sons.
Shim, J.K. & Siegel, J.G. (2008) Financial Management. (3rd ed.). China: Barron’s Educational Series.