Cash Collections: This refers to the amount of cash which a company expects to collect from the customers within a specific accounting period. A schedule is prepared to record the cash collected. Cash Payments: This refers to the amount of cash that should be paid to the creditors in the given accounting period. A schedule is prepared to record the cash payments. Cash Budget : A cash budget is the combination of the cash collections and cash payment schedule of the organization for the given accounting period. The cash budget records the summary of all the cash flow transactions related to the operating, investing and financing activities. The cash budget also includes the non-cash transactions like depreciation expense, issuance, receipt of stock dividends, non-collectible accounts expense and gains and losses on the sale of assets. To prepare: The schedule for the expected collections from customers.

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Chapter 23, Problem 23.4AP

(a) (1)

To determine

Cash Collections: This refers to the amount of cash which a company expects to collect from the customers within a specific accounting period. A schedule is prepared to record the cash collected.

Cash Payments: This refers to the amount of cash that should be paid to the creditors in the given accounting period. A schedule is prepared to record the cash payments.

Cash Budget: A cash budget is the combination of the cash collections and cash payment schedule of the organization for the given accounting period. The cash budget records the summary of all the cash flow transactions related to the operating, investing and financing activities. The cash budget also includes the non-cash transactions like depreciation expense, issuance, receipt of stock dividends, non-collectible accounts expense and gains and losses on the sale of assets.

To prepare: The schedule for the expected collections from customers.

(a)(2)

To determine

To prepare: the expected payments from direct materials purchases.

(b)

To determine

To prepare: The cash budget.

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