1. Accounting Practices 501 Chapter 14 Cash Budgets (Expenses) Cathy Saenger, Senior Lecturer, Eastern Institute of Technology © Pearson 2011

2. Ch14B - Cash budgets (exp) 2 What about the cash outflow from payment of expenses? AprMayJune Monthly Cash Budget for the three months ended 30 June 20X1 Receipts Receipts from customers14,31815,29511,788 Cost of Sales Payments to suppliers2,760 3,4502,300 Cash Inflow11,55811,8459,488

3. Ch14B - Cash budgets (exp) 3 AprMayJune Monthly Cash Budget for the three months ended 30 June 20X1 Receipts Receipts from customers14,31815,29511,788 Cost of Sales Payments to suppliers2,760 3,4502,300 Cash Inflow11,55811,8459,488 Expenses Wages500 Insurance1,380 Be careful, as some expenses are GST exempt (such as Wages) Expenses are also shown as GST incl

4. Ch14B - Cash budgets (exp) 4 AprMayJune Monthly Cash Budget for the three months ended 30 June 20X1 Receipts Receipts from customers14,31815,29511,788 Cost of Sales Payments to suppliers2,760 3,4502,300 Cash Inflow11,55811,8459,488 Expenses Wages500 Insurance1,380 Operating Inflow11,0589,9658,988 The Operating inflow/outflow can now be calculated Operating inflow=Cash Inflow less Expenses

5. Ch14B - Cash budgets (exp) 5 But wait …. there’s more ….. Yay!!!!