what is the difference and similarity between cash budget and long term financial planning
cash balancing
Nothing.
investora forecast
it is a forecast of the amount of cash you will be gaining through-out a period of time. for example: icecream vans: there forecast of cash will be low in the winter as not many people by ice creams by the forcast in the summer will be high as more people buy icecreams then.
what is the difference and similarity between cash budget and long term financial planning
Budget is forecasting future cash needs and cash is most liquid form of money at present.
Cash forecast is a forecasting activity in which future is predicted while in cash flow statement only cash inflows and outflows are shown which are already done.
A cash budget helps minimize current assets by providing a forecast of inflows and outflows of cash. It also encourages the development of a schedule as to when inventory is produced and maintained for sales (production schedule), and accounts receivables are collected. The cash budget allows us to forecast the level of each current asset and the timing of the buildup and reduction of each.
It would be a Cash Budget. A Cash Budget is a detailed forecast of future cash flows that helps financial managers identify when their firm is likely to experience temporary shortages or surpluses of cash.
Cash Flow Statement shows the actual flow of cash& Cash Flow Budget shows you the estimated flow. For more information you can listen to the radio station specifically dedicated to explaining Cash flow on Achieve radio.
1. cash flow statement is a technique of past analysis where as cash budget is a technique of future financial forecasting.2. cash flow covers a period of 1 year. in cash budget it is broken into monthly weekly segments.3.cash flow does not emphasis on a particular source and use. cash budget emphasis on financial pattern to meet seasonal and temporary cash need.
Cash budget estimates the cash inflows and outflows and net cash available for specific period while budgeted profit and loss is the estimated statatement for planning purpose before actual activity starts.
capital expenditure budget is a part of cash budget.cash budget involves managerial activities while capital expenditure budget involves day to day activities may be for long range or short range
What conditions would help make a percent-of-sales forecast almost as accurate as pro forma financial statements and cash budgets?
Differential cash is the difference in cash due between selecting between different alternative options or projects.
explain the difference between cash and credit transaction