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do you include depreciation on the cash budgeted

do you include depreciation on the cash budgeted

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Answer #1

Cash budget is the estimated cash flow of the company's cash position in the company. Cash budget includes all the real cash revenues and cash expenditures. It does not include non cash expenses. where as the depreciation is a non cash expense as it does not influence the cash. So Depreciation is not included in the cash budget.

However Depreciation, amortization, depletion etc reduces the earnings but not the cash flows. these are write down off an asset and does not involve a cash payment.

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