Ch20 Flashcards
Cash inflows - Budgeted Cash Flow Statement
Operating
- Cash sales of Inventory
- Collections from accounts receivable (credit sales made previously)
- Other revenues (interest revenue, commissions)
- GST collected from customer
Investing
- Disposal of Non current assets
Financing
- Cash contributions from owner (additional capital)
- loans
Cash Outflows - Budgeted Cash Outflows
Operating
- Cash purchases of Inventory
- Payments to accounts payable (credit purchases made previously)
- Cash payments of expense items
- GST paid to suppliers
Investing
- Buying new assets
Financing
- Cash withdrawals from owner
- loan repayments
Budgeted Cash flow headings
Cash flows from operating activities Net cash provided by operating activities Cash flows from investing activities Net cash used by investing activities Cash flows from financing activities Net cash used by financing activities
Net increase/decrease in cash held
Cash held at beginning of month
Cash held at end of month
Budgeted income statement
Revenue Cash sales Credit Sales Less: Cost of sales Estimated Gross Profit Less Inventory Loss Adjusted gross profit Other revenue Less other expenses Estimated Net profit
Budgeting
Budgeting - Process of preparing a financial plan for the business
Sales Budget - Report that includes estimates all sales for the future reporting period
Expenses budget - A list of predicted expense items for the future reporting period
Schedule of Collections & Payments
Schedule of Collections
- Table used by business that sell on credit to predict cash inflows from accounts receivable
Schedule of Payments
- Table used by businesses that purchase inventory on credit to help predict cash outflows to accounts payable