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BUDGETING A BUSINESS SCENARIO - STEP 9 CASH BUDGET - MONTHLY CASH FLOW The cash flow forecast is the most important budgeted statement that you

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BUDGETING A BUSINESS SCENARIO - STEP 9 CASH BUDGET - MONTHLY CASH FLOW The cash flow forecast is the most important budgeted statement that you will ever produce. Based on our understanding, we see that cash generation is critical for Budg business as, without adequate cash inflows, her business will neither meet its liabilities as they fall due nor will it meet her expansion plans. The higher concem is on cash generation as oppose to cost reduction. Budg has all the information from which to draw up her month-by-month cash flow forecast now. To do this she will look at the timing of her cash inflows from sales, the timing of her cash payments for direct materials and labour (COGS), together with any other payments or inflows of cash and details of outflows of cash from the fixed cost budget as well. In addition, Budg decides that she will be paying in $10,000 of her own money into her business bank account on 1 January and that she will be drawing our $2,000 a month for her personal expenses. From the above information, can you produce the expected monthly cash flow forecast? BUDGETING A BUSINESS SCENARIO - STEP 9 CASH BUDGET - MONTHLY CASH FLOW The cash flow forecast is the most important budgeted statement that you will ever produce. Based on our understanding, we see that cash generation is critical for Budg business as, without adequate cash inflows, her business will neither meet its liabilities as they fall due nor will it meet her expansion plans. The higher concem is on cash generation as oppose to cost reduction. Budg has all the information from which to draw up her month-by-month cash flow forecast now. To do this she will look at the timing of her cash inflows from sales, the timing of her cash payments for direct materials and labour (COGS), together with any other payments or inflows of cash and details of outflows of cash from the fixed cost budget as well. In addition, Budg decides that she will be paying in $10,000 of her own money into her business bank account on 1 January and that she will be drawing our $2,000 a month for her personal expenses. From the above information, can you produce the expected monthly cash flow forecast

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