Cash budgets are effective control devices for monitoring cash and determining financing requirements.

Good cash management is impossible without an analysis of the cash collections and cash disbursements of a company. Cash budgets provide a gauge for determining credit, disbursement, and discount policies. Cash budgets are effective control devices for monitoring cash and determining financing requirements.

Cash budgets are essential to all small businesses. In this assignment, you are required to do the following:

• Develop a spreadsheet with a cash budget with lagging collections
• Determine the net cash flows for the year
• Forecast the cumulative dollar amount of the external financing required for the year

You are also required to prepare a 3-page analysis of the results of your cash budget.