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What important information is contained in the cash budget

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(1) What important information is contained in the cash budget? Why is the cash budget so important anyway?

(2) How do you think the timing of cash receipts, payments, ext. will differ from a start-up company opposed to a company that is well established?

(3) What is a Cash Conversion Cycle, and how can the cash budget help with monitoring when cash is collected?

(4) Why is it important to understand capacity? How can capacity be defined?

(5) Can you think of any limitations that management may have when they are measuring capacity?

(6) Measuring true capacity limits before production can be challenging.  But is an important measurement. What is practical capacity?

Reference no: EM131719987

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