Ask Experts Questions for FREE Help !
Ask
    ParrotBird48516's Avatar
    ParrotBird48516 Posts: 28, Reputation: 1
    New Member
    		  
    #1

    May 15, 2012, 01:10 PM
    Purchases, COGS and Inventory in Cash Budgets
    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
    ParrotBird48516's Avatar
    ParrotBird48516 Posts: 28, Reputation: 1
    New Member
    		  
    #2

    May 15, 2012, 02:14 PM
    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
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #3

    May 16, 2012, 11:36 PM
    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
    ParrotBird48516's Avatar
    ParrotBird48516 Posts: 28, Reputation: 1
    New Member
    		  
    #4

    May 17, 2012, 06:12 AM
    Thanks Paraclete. Makes sense... of course.

    Parrot
    smart_ruby's Avatar
    smart_ruby Posts: 2, Reputation: 2
    New Member
    		  
    #5

    May 17, 2012, 12:26 PM
    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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

COGS without inventory [ 1 Answers ]

Please help me how can I calculate COGS (cost of revenue) in Income Statement without beginning & ending inventory. I just have data in previous years (2008,2009,2010) but I must calculate cost of revenue for 2011. Revenue in 2011 is 29348.66. Thx

If firms pay cash for 10% of its purchases,50% of its purchases in the following mont [ 0 Answers ]

If firms pay cash for 10% of its purchases,50% of its purchases in the following month and the balance two months frommonth of purchase.How can I calculate the purchases.

How do you find average inventory using only ending inventory and COGS? [ 3 Answers ]

In searching the Internet on a method of how to do this, all examples include beginning inventory and purchases to determine average inventory. I know ending inventory for one year is beginning inventory for the next, but when you don't have information on purchases, how does one arrive at finding...

View more questions Search