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Cash Forecasting and Budget:
It is used to get an idea of what a cash forecasted budget any might expect to earn in a fiscal year. You take last year's expenses, increased by any percentage that you can think they might go up, also add any new expenses you expect to incur. Then take the years expected revenue, generally last years plus projected growth, and subtract the expenses. The difference is projected profit. All of this shared is a forecasted budget.
A company has the opportunity to sell an old machine. The machine is fully depreciated to a zero book value but could be sold for $5,000. If the company did not sell the machine, i
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