Ch20 Flashcards

1
Q

Cash inflows - Budgeted Cash Flow Statement

A

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
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2
Q

Cash Outflows - Budgeted Cash Outflows

A

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
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3
Q

Budgeted Cash flow headings

A
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

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4
Q

Budgeted income statement

A
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
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5
Q

Budgeting

A

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

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6
Q

Schedule of Collections & Payments

A

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

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