A Home Business Application

A cash budget will not help identify possible problem times.

False

In making a sales forecast, the business owner can only use his best judgment to determine projected costs and revenues.

False

Sales on credit are immediately counted as cash receipts.

False

Generally speaking, using a __ year's history of cash receipts and disbursements will be a satisfactory for projecting the future.

Full

Select the missing numbers. Remember to indicate a negative cash flow with parentheses. Given: Schedule of Sales Receipts Jan. Feb. Mar. Apr. May June $110 $85 $100 $130 $145 $165 Schedule of Cash Disbursements Jan. Feb. Mar. Apr. May June $135 $110 $95 $95 $100 $105 Find: Net Cash Flows for

Jan. $25 Mar. $5 Apr. $35 June $60

Select the missing numbers. Remember to indicate a negative cash flow with parentheses. Given: Schedule of Sales Receipts Jan. Feb. Mar. Apr. May June $910 $850 $935 $930 $845 $765 Schedule of Cash Disbursements Jan. Feb. Mar. Apr. May June $835 $810 $895 $895 $900 $805 Find: Net Cash Flows for

Jan. $75 Mar. $40 Apr. $35 June $40

If a business experiences wide fluctuations, it is wise to make __ range forecasts.

Short

A budget is a planning tool.

True

In running a home business, it is important to keep accurate financial records.

True