How does a cash budget affect short-term financing decisions?
How can effective forecasting contribute to a heath care organization's financial success?© BrainMass Inc. brainmass.com December 15, 2020, 7:46 pm ad1c9bdddf
CASH BUDGET AND EFFECTIVE FORECASTING
Cash budget and short-term financing decisions
Cash budget is a detailed plan of future cash flows of an organization. Basically its elements include: cash receipts, cash disbursements, net change in cash for a given period, and financing needed. These elements are shown in a cash budget not only in terms of amounts but also in terms of the period when they will be received or incurred.
Cash receipts may show how much and when sales and other short-term revenues will be collected. Cash disbursements are payments made in the form of purchases, salaries and wages, rent, interest expense on existing debt, taxes, loan repayment, and others that ...
The expert determines the cash budget affects for short-term financing decisions. How can effective forecasting contributes to a health care organization's financial success is determined.