Discuss potential cash budget benefits


Assignment:

Review the Cash Budgeting Scenario:

Calculate the cash budget using the Cash Budget Worksheet.

Write a 700- to 1,050-word financial plan in which you complete the following:

• Discuss potential cash budget benefits and pitfalls for the business, including how the budget supports the strategic goal of the business to increase revenue by 10% annually.

• Outline your expected business expenses (e.g. fixed and variable costs, marketing, labor, operations, insurance) and sources of revenue (e.g. funding, sales of products/services).

• Include an income statement, balance sheet, and cash flow statement.

• Explain how you will adjust your small business cash budget to manage contingencies (such as emergencies and market shifts) as well as product and distribution shifts.

• Compare the differences between a cash budget and an operating budget, and explain why both are beneficial.

• Explain why a budget variance analysis is crucial for the operation of a business, and discuss how often a budget variance analysis should be performed.

Attachment:- CASH BUDGET WORKSHEET.rar

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Financial Accounting: Discuss potential cash budget benefits
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