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Q. Illustrate report on cash flow budget?
The cash flows
The principal reason why certain statistics were not included in the cash flows is that they are incremental cash flows and only include the income and expenditure which will arise only if the project goes ahead.
The following statistics were not included in the incremental cash flows
- the probability study which cost $45000 had to be paid out whether or not the project went ahead
- The depreciation is a non-cash movement item that the cash expended on the asset moves when it is paid over to the vendor
- The three employees paid $12000 each one would carry on to receive that amount whether or not the project goes ahead
- The cost of the materials XPZ and XNT was paid out some time ago and is not therefore a relevant cash flow
- The prepayments were in advance included in the amounts paid to the sub-contractors and didn't require any adjustment to the cash flows. The relevant info is the actual cash to be paid to them each year example 19X1 $60000 and so on.
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Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected against by cas
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