Topic three An Introduction to Cash Budgeting Assessed by way of a compulsory assignment. Visit the Blackboard website for details.

Use of a spreadsheet may be beneficial JulyAugSeptOctNovDecJanFebMarAprMayJuneTotal

 Revisit Cost Volume Profit calculations – 2.2. & Margins and Markups –  Complete relevant practice sets  Undertake independent research.

Examples of expected cash receipts Attendance fees Income from TV rights Revenue from sales Revenue from stalls or café = Total revenue

Examples of expected cash payments Variable costs Fixed costs Cost of products to be sold Capital acquisitions Cost of insurance Staffing costs Marketing Venue costs = Total expenses

Determining balances Opening balance of cash allocated to activity add Total revenues for the month Less Total expenses for the month = Closing cash balance Closing cash balance of one month becomes the opening cash balance of the next

Report  The feasibility of the planned tourist attraction.  The amount of funds which may be necessary to be borrowed.  The time periods of the borrowings.  The consideration of investments in times of excess cash and the time periods when commitments are due.  Suggestions you may feel relevant.

Good luck