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Earned revenues may include credit sales that have not yet been collected in cash. Expenses incurred may include some items that have not been paid in cash. Thus, net income is not the same as cash provided by operating activities. Because it requires so many estimates, its overall reliability is often challenged...
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It contributes to more effective cash management. The cash receipts section includes expected receipts from the companyâs principal source of revenue. These are Michaelâs cash sales and collections from customers on credit sales. The cash disbursements section shows expected cash payments. These payments include shirt purchases, silk-screen labor, silk-screen overhead, and selling and administrative expenses...
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Cash Management
Cash analysis
Cash or Credit?
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Cash
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