This study examined cash budget a tool for decision
making in business organization. The
purpose of cash budget is to facilitate and ensure that cash is available so
that the company can operate effectively at the levels provided for in the
other budgets. For effective management of decision making. The objective of
this study was achieved by using the under mentioned Nigeria
bottling company Onitsha
as a case study. The survey research method was made possible through the
administration of questionnaires which were distributed randomly to management
and supervisory level staff and some accounting staffs their responses where
collected form the respondents and then analyzed, using the percentage rate
methods. The analysis of data and finding revealed that cash budget is an aid
to effective management, impact positively on profitability and above all, it
was greatly accepted and applied, through there were some factors that hindered
their full implementations. Conclusively, it could be said that without cash budget
organizational goals and objectives may not be achieved. Therefore, it is
recommended that control should follow planning and variance should be
reporting and corrective action taken immediately.
TABLE OF CONTENTS
Table of contents
CHAPTER ONE: INTRODUCTION
Background of the study
Statement of problem
Objective of the study
Hypothesis (if any)
Significance of the study
Scope of the study
Assumption of the study(if any)
Definition of terms
CHAPTER TWO: LITERATURE REVIEW
Conceptual definition of budget
Current Literature review
Summary of Literature review
CHAPTER THREE: RESEARCH METHODOLOGY
Design of the study
Area of the study
Population of the study
Sample size and sampling technique
Instrument for data collection
Validity of the
Distribution and Retrieval of Instrument
Method of data analysis
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
Tabulation of Responses
Testing of hypothesis
Discussion of findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
Summary of findings
Limitation of the findings
OF THE STUDY:
rational economic unit has some objectives to attain, individual, corporate
bodies in government have objectives to achieve. To achieve their respective
objectives, resources have to be made available, unfortunately nature did not
distribute her resources abundantly, whilst objectives and needs are numerous
and varied as they are various economic units.
order to make resources available, cash is needed, according to investopedia,
cash is legal tender or corns that can be used to exchange goods, debt or
services some time it can also incluces the value of assets that can be
converted into cash immediately, as reported y a company.
to Shine Mat (15 June 2012): companies have those primary motives for holding
cash and hey are:
transation motive enables firms and companies to conduct their ordinary
business making purchases and sales. The precautionary motive depends on the
predict ability of cash flow and the ability of company to borrow a short
notice. This motive enable a firm to provide enough funds as a protection
against unexpected opportunity that may arise. Moreover, sound working capital
management require the maintenance of adequate amount of cash. The organization
must plan towards its and this plan is know as budgeting a subset of corporate
one of the controlling instruments used by the management, it is a plan or
estimate to be attained by an enterprise. In this study, efforts are made ot
find solution to the following problems. The problem of why budget cases failed
to be realized it is because of insufficient capital. Another problem that
management face is their liability ot manage (long term) cash budget and forecast
which may take up to two years, this is because of instability in the inflow
and outflow of cash. Cash balances my fluctunate considerably within a single
accounting period, there by making cash short tall that can put a company in
serious jeiopardy. To solve this, it is quite common to create and maintain
cash forecasts on a weekly basis. If there may be large or unusually cash
balances indicated in the cash budget. these balances are dealt with in the
financing budget where suitable investment is indicated for them.
OF THE STUDY:
objective of this study is to investigate cash budget as tool for decision
making in an organization specifically, the researcher wants to:
where cash budget is actually a basis for decision making in an organization.
ii Know the impact of conducting continuous
level of which cash budget has help organizations increasing more wealth and
iv How cash
budget allows management to establish the amount of credit that it can extend to
customers without beginning to have problem’s with liquidity.
v Know how
cash budget help the organization to avoid having a cash shortage during when
you have numeral expenses.
vi To know
how management manages it inflow and out flow
1.4 RESEARCH QUESTIONS
i Is cash
budget actually basis for decision making in an organization?
impact is continuous cash budget is to management?
cash budgets help organization to create wealth and run an effective
cash budget help management to determine the amount of dividend or credit to be
given to the customers?
v How does
cash budget help the management in avoiding having cash shortage?
1.5 Formation of Hypothesis
The following are formulated for the study Hypothesis
H0: Cash budget does not make decision making in
business organization easy and reliable.
HI: Cash budget make decision making in business
organization easy and reliable.
H0: Cash budget have not brought efficiency and
effective decision making in business organization.
HI: Cash budget has brought efficiency and effective
decision making in business organization.
1.6 Significance of the study
The significance of this study are:
It provides the yardstick for control of operation’s
in a business organization or any firm
It provides reference material for others who might
wish to conduct enquire into similar area.
It makes possible the control over operation revenue
It instills in executive as well as their
sub-ordinates the habit of basing decision on investigating studies and
research. It with widen the knowledge of the research on the subject matter.
It generate and recommend to be government means of
initiating the objectives of the cash budgeting.
1.7 SCOPE OF THE STUDY
scope of this study is to analyze the cash budget tool for decision making in
business organization especially that of Nigeria bottling Company Onitsha.
The work is focused on Nigeria Bottling Company Onitsha due to certain obvious
factors such as financial and time constraints and non-disclose of information
by the management of the company.
1.8 DEFINITION OF TERMS
Budget: It is a future plan of action
express in quantitative terms, financial or monetary terms. It is also defined
as a financial and quantitative statement prepared and approved prior to a
given period of time specifying the policies to be pursue for the attainment of
some set of objectives. It might be include income expenditure and employment
Cash: It can be defined as those monetary
items that are immediately available for use at any point in time. Cash can be
refer to money in the physical form or currency such as bank notes and coins.
It is the
process of recording, classifying, seleting, measuring, interpreting and
communicating financial data or an organization to enable users make decision.
is a process, this means budgeting is a number of activities performed in order
to prepare a budget. it is also the crafting of the plan for future events,
applying laid down concepts for proper / implementation, monitoring, evaluation
and control in order to achieve defined goal.
is a financial budget which is prepare in an organization, it shows in summary
form the expected cash receipt and expected cash payment during the budget
OF NIGERIA BOTTLING COMPY
first arrived in Nigeria
in 1951. That same year, the Nigerian Bottling company Ltd (NBC) was
incorporated to bottle and sell carbonated non-alcoholic beverages. NBC has the
sole franchise to bottle coca-cola products in Nigeria.
was an instant hit with the Nigeria
consumer and has remained so. Over the next six decades, NBC has continued on
its journey keeping its promise of refreshing consumers, strengthening its
communities, enriching the workplace land preserving the environment while recording
many memorable milestones along the way. To mention a few.
of coca-cola began at a bottling facility in Ebute-metta, Lagos state. The same year the company opened
its first bottling plant in Apapa.
The year Nigeria
gained independence, NBC exceeded the one million case a year mark.
its second bottling facility at Ibadan,
Oyo state and rapidly expanded its operation over the next couple of years.
shares on the Nigerian stock Exchange and became a publicly quoted company
the Eva premium water and Schweppes brands.
member fo the newly formed coca-cola Hellenic Bolling Company S.A Can anchor
Bottling group with operations in 28 countries worldwide)
five alive juice brand
pet packaging for its sparkling soft drinks category
the energy drink, burn
on-the-go can packaging or core brands coca-cola, fanta and sprite in 2006
the more environmentally friendly “ultra” glass packaging for its returnable
glass Bottling product segments.
operations stands at 13 facilities and 59 depots across the country.
was recognized for its corporate social responsibility activities as the most
socially Responsibility Company in Nigeria and most environment
friendly company at he social enterprise Reporting Awards. The company obtained
first food safety systems certification (FSSC) 22000.
till date there is not new product in the company.