cash budget

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Cash budget

A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances.

Cash Budget

An estimate of the expected cash inflows and cash outflows for a company or individual for a given period of time. A cash budget is vitally important because it measures the liquidity of a company (or individual) and therefore how much one can spend before beginning to have financial difficulties. See also: Budget.
Cash budgetor cash flow forecastclick for a larger image
Fig. 17 Cash budgetor cash flow forecast. A typical example.

cash budget

or

cash flow forecast

an accounting statement which analyses expected cash receipts and payments over forthcoming trading periods with a view to anticipating any potential cash shortages or surpluses before they arise and thus allow appropriate remedial action to be taken. This action could take the form of tightened CREDIT CONTROL to get cash in from customers more quickly, or arranging short-term loans in advance to cover an expected cash shortage, or plans to invest profitably any expected cash surplus. Fig. 17 shows a typical cash budget. See BUDGET, BUDGETING, BUDGETARY CONTROL.
References in periodicals archive ?
The primary subject matter of this case concerns the development and use of a cash budget as a key component in a cash management system.
48 years after the company founding, with cash budgets following quickly.
Cash budgets allow managers to easily compare anticipated cash inflows with anticipated cash outflows, and enable them to properly plan for sufficient balances of cash throughout the budgeted time frame.
For example, cash budgets for each division of a company can be included in the same file.
Cash budgets that are prepared in accordance with the Financial Accounting Standards Board 95 format, direct method, are extremely useful in that receipts and expenditures are presented according to operating, investing, and financing activities.
Cash budgets for the in-house negative costs are estimated at $260 million, $140 million for P&A costs and $80 million for the built-in overhead.
Examples of these stricter rules include requirements for utilizing computers, maintaining cash budgets, and developing reliable sales forecasts|2~.
This additional donation of agricultural product would free the school districts to use more of their cash budgets to purchase items that would help improve their menu, such as more fresh fruits and vegetables, while receiving additional farmed commodities.
Politicians that succeed in this area are rarely thanked; but the many that fail to get a grip on cash budgets never large enough to meet growing demand for services will find criticism falling upon their heads like a ton of bricks.
While the council and primary care trusts argue, the brutal truth is that highly-vulnerable people are being denied help because local authority cash budgets are not large enough to meet growing demand for assistance.
It is no secret that most stations find themselves in a position of having abundant inventory, but increasingly tight cash budgets.
Sparks and Scott used historical information provided by Golf Corp LLC and the information used in developing the forecasted financial statements to prepare the cash budget assumptions.