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 ?
cash budget analysis, present value analysis, dividend payout analysis, projecting costs for recommendations, and treasury stock analysis).
In the case of the purchases of goods and services, the cash budget does not show the debt levels long as they are not paid.
The Treasury's February cash budget produced a TRY 2.
Based on the monthly reports on the cash budget implementation of first level spending units the budget balance under the Bulgaria's Consolidated Fiscal Programme (CFP) as of April is positive, amounting to BGN 473.
Table 12A: Cash Budget Q1-Y1 Q2-Y1 Q3-Y1 Q4-Y1 Total Beginning Balance + CR Total Cash Available Less--CD: DM--Hulls DM--Seats DM--Drain Plugs DL OH S & A Expenses Total Disbursements Excess (Deficiency) Borrow Pay Back Interest Ending Balance
The cash budget would translate any resulting cash flow from the Tokyo office to the U.
This human element is more powerful than any large cash budget in creating an atmosphere conducive to change and the ability to better service customers in an innovative way.
At the time, three different measures of the Federal budget were in use: the traditional or administrative budget, which ignored trust funds such as Social Security; consolidated cash budget, which incorporated all of the trust funds; and the NIA budget, which put the budget on an economic basis by using the relevant components of the national income and gross domestic product (NIA or GDP) accounts.
Debt risk is associated with cash flows (from Cash Budget or Cash Flow Statement) and operational risk is associated with EBITO, from the Income Statement.
He added that the country is preparing cash budget as this practice is also being followed in the other countries also.
From the changes we have identified in our detailed budget preparation, we can evaluate how these affect the three elements of the master budget: the budgeted income statement, the cash budget and the budgeted balance sheets.