ECONOMICS

Detailed explanation-1: -A cash budget is a company’s estimation of cash inflows and outflows over a specific period of time, which can be weekly, monthly, quarterly, or annually. A company will use a cash budget to determine whether it has sufficient cash to continue operating over the given time frame.

Detailed explanation-2: -Closing balance = Opening balance + Receipts-Payments.

Detailed explanation-3: -Closing cash is Net Cash + Opening Cash. This is the money you have left over at the end of preparing your budget.

Detailed explanation-4: -The primary purpose of using a cash flow budget is to predict your business’s ability to take in more cash than it pays out. This will give you some indication of your business’s ability to create the resources necessary for expansion, or its ability to support you, the business owner.

Detailed explanation-5: -A cash budget is a budget or plan of expected cash receipts and disbursements during the period. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payments. In other words, a cash budget is an estimated projection of the company’s cash position in the future.