Tài chính kế toán - Chapter 4: Cash budgets

Chapter 4Cash budgets1Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldCash budgetsCash receipts budget:Estimated receipt of cash from all sources.Cash payments budget:All estimated payments of cash by the business.2Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldGST and cash budgetsThis unit assumes all businesses are registered for GST and pay their liability monthly. Collection of Goods & Services Tax (GST) when the business makes a taxable supply.Taxable supply: a sale of a good or service that is not GST-free or input taxed.GST input tax credits: a credit for the GST included in the purchase of a good or service. 3Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldSample cash receipts budget where all receipts are GST-free or input taxed4Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldSample cash payments budget where some acquisitions include GST (p. 61)5Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldCash budget format Cash balance @startadd cash receiptsadd GST refund total cash available for needscash paymentsadd GST payable total paymentsCash balance @end6Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldCollections from debtorsCalculate cash and credit sales (p. 65).work out cash sales GST exclusivework out GST payable on cash saleswork out credit sales GST inclusivePrepare a collection from debtors schedule for the budget period.Show separately at bottom of schedule the GST payable included in the figures.7Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldDermott Jewellers (p. 69) 8Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldGST reported on accrual basisGST is payable at point of sale.Input tax credit is receivable when the entity receives the tax invoice.GST adjustment for a bad debt is made when the debt is actually written off as bad.GST adjustment for discount allowed is made when discount is given.GST collected each month is not the same as GST payable.9Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldCollection from debtors with discount allowed and doubtful debts (p. 71)10Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya AronfeldDesired balance and financial requirementsManagement may desire to have a minimum cash balance.May involve borrowing funds to attain required balance.Borrowings are made in the month that a deficit is likely.There may be conditions attached to the amounts that can be borrowed.11Copyright  2003 McGraw-Hill Australia Pty LtdPPTs t/a Budgeting, second edition, by Banks & GilibertiSlides prepared by Mya Aronfeld