finance discussion questions
See attached questions. 2 question minimum 100 words each.
1. A widespread major budgeting problem is the cash budget. Refer to Table 19.4. For Table 19.4, we see that Dynamic Mattress collects 70% of sales in the month. For instance, if Dynamic Mattress sales are $560m, they can not budget to spend $560m. Why? They will collect $511m and not $560m. Therefore, if the leaders agree to spend more than $511m, they are negative spending. What else did you learn from Section 19.3?
2. With the extensive use of Microsoft Excel and similar software, it is much easier to create and manage planning models. Each organization has a planning model. Almost every industry has a planning model. I suggest that everyone approach their accounting and finance department about the planning model. Therefore, when creating your operating budget, tactical budget, strategic budget, and capital budget, your budget will align with your organization’s goals and objectives. In the interim, follow the numbers provided in Table 18.1 and Table 18.2. In Section 19.1, the authors shared the links between long-term and short-term financing. What are the links between long-term and short-term funding?
