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Difference between a cash budget and statement of cash flows

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Question -

1. Explain the difference between a cash budget and statement of cash flows? Which one is more important?

2. Identify the impact of the following events on cash and profit (increase, decrease or no change). Briefly state the reason, explaining the impact of the events.

Purchase of machinery for cash $2,000

Sales on credit for $1,000

Depreciation of the equipment $500

Receive payment from credit sales $1,000

3. Please refer to page 24 in your notes: 'Importance of cash flow management'. Follow the link and read the article 'How to better manage your cash'.

Summarize four approaches that have been provided in this article to better manage small business cash flow.

Reference no: EM132965021

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