1. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-1 Chapter 4 Cash budgets

2. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-2 Cash budgets  Cash receipts budget: Estimated receipt of cash from all sources.  Cash payments budget: All estimated payments of cash by the business.

3. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-3 GST and cash budgets  This unit assumes all businesses are registered for GST and pay their liability monthly.  Collection of Goods & Services Tax (GST) when the business makes a taxable supply.  Taxable supply: a sale of a good or service that is not GST-free or input taxed.  GST input tax credits: a credit for the GST included in the purchase of a good or service.

4. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-4 Sample cash receipts budget where all receipts are GST-free or input taxed

5. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-5 Sample cash payments budget where some acquisitions include GST (p. 61)

6. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-6 Cash budget format  Cash balance @start  add cash receipts  add GST refund total cash available for needs  cash payments  add GST payable total payments  Cash balance @end

7. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-7 Collections from debtors  Calculate cash and credit sales (p. 65).  work out cash sales GST exclusive  work out GST payable on cash sales  work out credit sales GST inclusive  Prepare a collection from debtors schedule for the budget period.  Show separately at bottom of schedule the GST payable included in the figures.

8. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-8 Dermott Jewellers (p. 69)

9. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-9 GST reported on accrual basis  GST is payable at point of sale.  Input tax credit is receivable when the entity receives the tax invoice.  GST adjustment for a bad debt is made when the debt is actually written off as bad.  GST adjustment for discount allowed is made when discount is given.  GST collected each month is not the same as GST payable.

10. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-10 Collection from debtors with discount allowed and doubtful debts (p. 71)

11. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4-11 Desired balance and financial requirements  Management may desire to have a minimum cash balance.  May involve borrowing funds to attain required balance.  Borrowings are made in the month that a deficit is likely.  There may be conditions attached to the amounts that can be borrowed.