CBM Cash Budget
For the nine months ending November Continue reading...
Note – 1: Payment received in first month is 25% of sales, in second month is 55% of sales and in the third month 20% of payment is received.
Note – 2: Depreciation has no cash effect. It is not a cash expense. Therefore, it is not included in the calculation on the Cash budget.
CBM must arrange finance from the outside out the business to meet their monthly expenses. The main reason for arranging finance from other sources is that the business has the fixed expense of $60,000 per month regarding