ELEMENTS OF CASH BUDGET - Working Capital Management

The cash flow budget as stated above is statement of the target cash inflows, cash outflows, net change in cash for the period and additional financing needed. Thus, the generic sub-elements of cash inflow and out flow are:

CASH INFLOWS

  1. Cash Sales
  2. Collection of receivables
  3. Sales of investment
  4. Sale of fixed assets
  5. Interest and dividend collection
  6. Bank loans
  7. Insurance of shares and debentures

CASH OUTFLOWS

  1. Payment of current liabilities like supplies of materials, pay roll expenses, taxes, etc.
  2. Draft payment
  3. Purchase of capital assets
  4. Repayment of loans
  5. Other cash outflow like interest-expenses etc.

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Working Capital Management Topics