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Cash budget
Submitted by
Vijay dilip somase
Guided by
Prof khairnar mam
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?
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
Methods Of Cash Budget
Cash Inflows
Sales and other cash income
New loans received
Sales of capital assets
Nonfarm income
Beginning cash on hand
Cash Outflows
Cash expenses
Principal payments
Purchase of capital assets
Nonfarm expenses
Ending cash on hand
Do not include:
Depreciation
Opportunity costs
Any other noncash income
or expense
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.
Preparation of cash budget
Estimating cash receipts
 Cash sales
 Collection from debtors
 Interest / dividends on investment
 Sale of assets etc
 Loans, advances, deposits, etc
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
Budget within the year
Jan-
Feb
Mar-
Apr
May-
June
July-
Aug
Sep-
Oct
Nov-
Dec
Cash
Inflows
- Cash
Outflows
=
Balance
THANK YOUTHANK YOU

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Cash budget

  • 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
  • 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