成功计划的25个诀窍外文翻译.docVIP

外文翻译 Forecasting Budgets Material Source:25 Keys to Successful Planning Author:Norman Moore The financial budget consists of the capital expenditure budget and the cash budget. These budgets support the operating budgets. The capital expenditure budget estimates the financing requirements needed for major asset purchases. The cash budget projects cash flows and short-term financing and investment decisions. Information from the master budget is used to produce pro forma financial statements, the advance estimates of where the company expects to be in terms of profits, revenues and net assets at the end of the reporting period. The operating budgets provide the information needed to generate the pro forma income statement. The capital expenditure budget updates the balance sheet to reflect fixed asset acquisitions. The cash budget uses information generated by the operating budgets to update the cash and short-term investment account on the pro forma balance sheet. The capital expenditure budget contains purchases of machinery, facilities or other long-term projects. The items included are the projects that management has selected to create value. The very survival of the firm hinges on the projects included in the capital budget. Because of their importance and the large dollar amounts involved they are carefully analyzed. Most firms have a separate capital budgeting department to evaluate potential projects. The analysis usually consists of comparing the projected ability of the project to generate cash with its net investment. Occasionally the analysis includes a charge for using the capital. The capital charge is usually expressed in percentage terms. For example, the firm may require all capital budget expenditures to generate a rate of return in excess of a hurdle rate such as 20%. The major deficiency in the capital expenditure budget is that it is rarely used as a budget. Even though it is subjected to the most rigorous analysis, once the budget is appr