Clarification/confirmation requested please:

Are the following accounts required to be included in a cash budget (and my guess-timation):

Purchases: yes
COGS: yes
Inventory: no (as it is an asset?)

Thank you.

Parrot

As I continue, I am beginning to think that COGS figures are NOT included in the cash budget, as I previously guessed.

Clarification still required for original question please.

Thanks,

Parrot

parrot time to think

COGS, Purchases and inventory are all components of the one equation and that is inventory i.e. opening inventory + purchases - COGS = closing inventory

in a cash budget purchases is the only item you will include

Thanks Paraclete. Makes sense... of course.

Parrot

Cash budget involves cash receipts and payments. This includes cash collections from sales of goods, collections from accounts receivables. Payments includes purchase of merchandise, taxes, interests, loans paid, and other cash outlays. Please do understand that When there is cash involve in the transaction, then that is part of your cash budget, if there's none, then common sense, it's not included