CASE STUDY 3 - Cash Budget Template

SCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS: Credit Sales April May June Total Cash Collections

May

SCHEDULE FOR EXPECTED PAYMENTS FOR PURCHASE OF INVENTORY Inventory purchases April May June Total Payments for Inventory Purchases

May

LBJ Company Cash Budget For the Two Months of May and June May Cash balance Add: Receipts Collections from customers Sale of plant assets Sale of new common stock Cash sales Total receipts Total Available Cash Less: Disbursements Purchases of inventory Operating expenses Selling and administrative expenses Equipment purchase Dividends Total disbursements Excess (deficiency of available cash over disbursements) Financing Borrowings Repayments Ending cash balance Please answer the 3 qualitative questions on the next tab called Qualitative Questions.

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June

June

June

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3)

What are the three sections of a Cash Budget, and what is included in each section?

Why is a Cash Budget so vital to a company?

What are the five basic principles of cash management that a company can follow in order to