All 34 Cash Budgeting questions
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How is a cash budget structured/formatted? What actions can management take if the cash budget shows a shortfall? What can management do with a forecast cash surplus? How does the cash budget link to working capital management? How do bad debts affect cash receipts in the cash budget? How are settlement discounts reflected in the cash budget? How does a cash budget help decide on financing arrangements? How do tax and dividend payments feature in the cash budget? How does inventory purchasing policy affect the cash budget? What actions can improve the cash position shown in a cash budget?
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Budgeting & Forecasting › Cash Budgeting

How do capital expenditure and financing appear in the cash budget?

Intermediate

Answer

Capital expenditure appears as a lump-sum cash outflow in the month(s) the asset is paid for (from the capital budget), and related financing (loan drawdowns as inflows, repayments and interest as outflows) is timed accordingly. These large, lumpy items often drive the biggest swings in the cash position.
Real-world example A $200k machine purchase and the drawdown of a loan to fund it both appear in the relevant months.

Common follow-ups: Where does capex come from? | How is loan financing shown?

Capital Budgeting The Master Budget Cash Budgeting
All 34 Cash Budgeting questions