Question

Why would a business manager use simulations in the cash budget process?

Why would a business manager use simulations in the cash budget process?

Homework Answers

Answer #1

The cash budget is a statement of the firm’s estimated of cash inflows and outflows based on firm's future plans. It helps to estimate its cash requirements.

Simulations are required in cash budget process to know the cash balance based on different strategies available for the company to adopt. For example- The sales forecast is the key variable in preparation of the cash budget. The company may want to know minimum sales they need to make to generate enough cash to run the business without any hiccups.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Many governments budget on the cash basis. Explain why a government would budget on a cash...
Many governments budget on the cash basis. Explain why a government would budget on a cash basis rather than on a GAAP-basis. What basis of accounting would you recommend for a municipality’s budget? Explain and justify your selection.
Why would the cash collections budget be different than the sales budget?
Why would the cash collections budget be different than the sales budget?
Discuss the differences between a cash budget and an operating budget. Why might both be important...
Discuss the differences between a cash budget and an operating budget. Why might both be important to a small business?
What is the importance of the statement of cash flows? Why would a financial manager be...
What is the importance of the statement of cash flows? Why would a financial manager be so interested in this statement?  
If you were in the process of starting a new business why would you elect a...
If you were in the process of starting a new business why would you elect a "C" corporation over a 501C3 entity?
5. Be familiar with the process of developing a sales budget and cash receipts budget. 6....
5. Be familiar with the process of developing a sales budget and cash receipts budget. 6. What is the calculation used to determine an inventory purchases budget?
Citizen engagement in public administration is important. During the budget process what techniques/questions would you use...
Citizen engagement in public administration is important. During the budget process what techniques/questions would you use to gain citizen engagement? / Describe an issue a city would face (infrastructure, budgeting, self-driving cars). Discuss alternative solutions to that issue. Discuss why you believe the alternatives would be best for the problem. Include citations for your solutions.
• Research the best ways a small business manager can stay on top of cash flow...
• Research the best ways a small business manager can stay on top of cash flow in operating a business. Select three (3) articles that give practical suggestions as to the best practices a manager can use to stay on top of cash flow and money issues. • Synthesize and evaluate the articles as well as those in the classroom, to find ways to manage money as well as pitfalls to avoid. • Using these points as a guide, create...
Citizen engagement in public administration is important. During the budget process what techniques/questions would you use...
Citizen engagement in public administration is important. During the budget process what techniques/questions would you use to gain citizen engagement?
. As a manager, would you prefer your business to be in a monopoly position or...
. As a manager, would you prefer your business to be in a monopoly position or a perfectly competitive market? Why? Support your views with examples. (In a written text please, not a pic)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT