III.+Module+10000+Explanation+and+Examples

=III. Module 10000 Explanation and Examples=

**1.** **Total Cash Available –** Is the brought forward beginning cash balance from the previous period plus all expected cash receipts for the specified period such as cash sales and estimated accounts receivable collections. **2. Cash Disbursements –** Is all expected resulting cash outflows for the specified period excluding short term loan interest payments. **3. Cash Excess or Deficiency –** This section looks at the difference between the expected available cash to the minimum amount of cash required for the company’s obligations for the period. When the total results in a cash excess the cash available exceed the company’s needed cash for the period which in turn gives the company the opportunity to pay off loans or make additional investments. Alternatively, when a cash deficiency or shortage exists, the company’s available cash is less than the need cash required for the period. **4. Financing –** This section defines the company’s borrowing and repayment activities for the specified period which include interest payments on money borrowed. **5. Cash Balance – **This is the amount of expected ending cash balance for the calculated period. Because the minimum cash balance is not actually a cash outflow it is added back to the cash budget to determine the final expected cash balance at the end of the period.


 * Resources:**
 * 1) Investopedia ULC (2011) Retrieved July 3, 2011 from [|www.investopedia.com]
 * 2) AccountingTools (2011). Retrieved July 3, 2011 from [|www.accountingtools.com]
 * 3) Accounting For Management (2011). Retrieved July 3, 2011 from [|www.accountingformanagement.com]
 * 4) Hansen, D.R., & Mowen, M. M. (2011). //Cornerstones of Cost Accouting. // Mason, OH: South-Western, Cengage Learning.