1. Our cash budget has four main sections. What are they? What information is conveyed to managers by each? Please briefly explain. You may be asked this again in your near future.
2. How is the timing and amount of cash receipts from sales affected by the credit terms offered by you to customers? What are some ways to accelerate cash collections? Businesses use some standardized methods that you may have seen or know about.
3. How is the timing and amount of cash disbursements for purchases and expenses affected by credit terms offered by your trade vendors to you? What are some ways to defer or slow down cash disbursements to your vendors?
4. Do the cash requirements by month or quarter for the capital expenditures budget need to be included in a cash budget? Do you think extra planning must be done to be able to make these kinds of payments on a certain date?
5. Do occasional payments like semi-annual property tax payments, quarterly cash dividends, employee quarterly or annual bonuses, (or make up your own example) need to be included in a cash budget? Why so or not?