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D1 Cash Budget Forecast

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Task 3.1

To: Mr. Yang
Date: 05 November 2014
Subject: Cash Budget Forecast

Dear Mr. Yang

I made your business’ cash budget forecast for the period of 1st January 2015 to 31st December 2015. I put it at the last page because I made it from Microsoft Excel.
There are many ways to improve your cash-flow and the first step that you should have a collection process from your customers. When your customers delay payments, they are using your cash. That is why you need to ensure that you are being diligent in collecting from your customers.
Also, you should get a nice cash budget forecast. Many small companies do not prepare for all costs associated with growing as soon as possible. The forecast could be as simple as with paper and pencil for the small company. If you start drawing a cash budget forecast once a week or once a month, you will see where the sales and expenses come and out.
Lastly, you need to …show more content…

Therefore, creditors and stock investors use it to analyze and review the current financial. For banks, a balance sheet is important because they are able to decide whether or not a company deserves to get additional loans.
- Cash-Flow Statements: Cash-Flow Statement consists of operating activities, investing activities, and financing activities. It provides important insights about the liquidity and solvency of a company which are vital for survival and growth. Cash flow statement also enables analysts to use the information about historic cash flows to form predictions of future cash flows which based on economic decisions. For example, increase in capital expenses and development costs may be a suggestion a higher increase in future

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