Cash Budgeting

Cash Budgeting

1. Receipts

   • Cash Sales
   • Credit Sales (Buy now Pay Later)

2. Payments

   • Credit purchases (Buy now Pay Later)
   • Examples
     • Credit Purchases
     • Wages
     • Fixed Overheads
       • X euro - Depreciation
     • Variable Overheads
       • Sales/SP times CP
     • Equipment
     • Loan Repayments
     • Interest

3. Cash inflow/Receipts = Money in

4. Cash Outflow/Payments= Money out

5. Net Cashflow= Total Receipts - Total Payments

6. What info can you get?

   • Shows you all inflows and outflows
   • Shows if you have a surplus or deficit

7. A Cash Budget looks at cash inflows and outflows during a period of time