Cash budget

vijay dilip somase @ kopargaon
8888577394

1. Cash budget
Submitted by
Vijay dilip somase
Guided by
Prof khairnar mam

2. Cash Flow Budgeting
Cash flow budget used for?
What items are included in cash
inflows and cash outflows?
What adjustments can be made in
cash balance?

3. A cash budget is prepared to
Monitor the timing of cash IN cash OUT
Make sure there is enough cash
available
See if and when a bank overdraft is
required
Plan the timing of the purchase of a
fixed assets
Avoid a negative cash flow situation

4. Methods Of Cash Budget

5. Cash Inflows
Sales and other cash income
New loans received
Sales of capital assets
Nonfarm income
Beginning cash on hand

6. Cash Outflows
Cash expenses
Principal payments
Purchase of capital assets
Nonfarm expenses
Ending cash on hand

7. Do not include:
Depreciation
Opportunity costs
Any other noncash income
or expense

8. Cash Flow Budgets Can
Be:
Annual
Quarterly
Bi-monthly
Monthly
1.Estimate cash inflows and outflows for
the entire year first.
2.Distribute the annual totals among the
periods within the year.

9. Preparation of cash budget
Estimating cash receipts
Cash sales
Collection from debtors
Interest / dividends on investment
Sale of assets etc
Loans, advances, deposits, etc

10. Preparation of cash budget
Estimating cash payment
Payment for purchases
Payment of overheads
Purchase of assets
Payment of creditors
Payment for taxes
Payment for dividends/interest etc
Repayment of loan / advances / deposits etc

11. Budget within the year
Jan-
Feb
Mar-
Apr
May-
June
July-
Aug
Sep-
Oct
Nov-
Dec
Cash
Inflows
- Cash
Outflows
=
Balance

12. THANK YOU THANK YOU