Cash Budget
Financial plan showing anticipated cash inflows/outflows.
Formula
Closing Balance = Opening Balance + Cash Inflows − Cash Outflows
Real World
A seasonal ice-cream business in Brighton uses a monthly cash budget to predict the winter months when inflows collapse, arranging an overdraft facility before the shortfall hits.
Exam Focus
Show all workings in cash budget calculations; correctly carrying the closing balance forward as next month's opening balance is a common mark-scoring step.
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