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CHAPTER 6
CASH BUDGETING
CHAPTER 6 QUESTIONS
1. You should place most of your assumptions that you might consider changing at a later date in a
special section of the worksheet called Assumptions. That way if, after the budget is created you
want to do some what-if analysis, you can locate the assumptions easily.
2. The operating cash receipts portion of the cash budget should include budgeted sales and budgeted
collections of sales.
3. The cash budget must account for the timing of revenue collection. Whenever a company offers
terms to customers (i.e. payment at other than the time of sale like net 30) the budget must take into
consideration when revenue will actually be collected.
4. The operating cash payments portion of the cash budget should include budgeted purchases and
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CHAPTER 6 ASSIGNMENTS
1. CREATE A NEW WHAT SUP OPERATING CASH RECEIPTS BUDGET
a.
b.
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c.
d.
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2. CREATE A NEW WHAT SUP OPERATING CASH PAYMENTS BUDGET
a.
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b.
c.
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d.
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CHAPTER 6 CASES
1. Kelly’s Boutique
a.
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b.
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c.
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d.
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2. Wine Depot
a.
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b.
c.