Acct 504 Case Study 3 On Cash Budgeting

Cash balance Borrowings RepaymentsSCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS:Credit SalesSCHEDULE FOR EXPECTED PAYMENTS FOR PURCHASE OF INVENTORY Inventory purchasesTotal Cash CollectionsTotal Payments for Inventory PurchasesCash Budget Add: ReceiptsTotal receiptsTotal Available CashLess: DisbursementsTotal disbursementsExcess (deficiency of available cash over disbursements)FinancingEnding cash balance Collections from customers Sale of plant assets Sale of new common stock Cash sales Operating expenses Selling and administrative expenses DividendsCASE STUDY 3 - Cash Budget Template Equipment purchase Purchases of inventoryWhat are the three sections of a Cash Budget, and what is included in each section?1)2)3) Why is a Cash Budget so vital to a company?What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash?MayJuneAprilFor the Two Months of May and JuneLBJ CompanyPlease answer the 3 qualitative questions on the next tab called Qualitative Questions.Cash is a vital life line for many businesses and therefore contributes to more effective cash management. A cash budget shows anticipated cash flows, usually over a one or-year period. It can show when a company will need additional financing, well before the actual need arises. On the hand, it can indicate when the company will have excess cash