 In this discussion we will discuss the discussion question of describe the cash budget and how it is prepared. If we see an essay question or discussion question such as this we may want to start off with those objectives of the budget say hey the cash budget is going to be part of the total budgeting process. Typically it's going to be part of the master budgeting process and we can go through the master budgeting processes goals what are the goals of the master budgeting process we can go through the list of the order in which the budgeting process will typically take place starting with the sales budget, typically ending with the financial statements or the budgeted financial statements the balance sheet and the income statement the budgeted balance sheet and the budgeted income statement the cash flow statement then or the cash budget I should say the cash budget statement will typically be towards the end of this process as well. So it'll be kind of towards the final products, kind of towards where we finally end up with the budgeted balance sheet and the budgeted income statement. The budgeted cash flow statements can be very important to the company as well, because note that as we create our budget, just like when we create our financial statements generally, we generally think of them in terms of an accrual type basis, we're budgeting performance, how we're going to do how we're going to perform on the income statement, and where we will end up at the end of that point in time at the end of the year on the balance sheet in accordance with an accrual basis. But of course, it's also important to consider this information in terms of a cash basis, because we need to make sure that we have enough cash to process or go through this process. So the cash flow basis, you want to point out that when we go to the cash flow statement, that it's going to be a very important component, because we need to make sure that we have the proper cash flow in order to achieve our objectives and not have too much cash flow so that we're wasting the purchasing power of the cash flow. The cash flow statement, as we say, will be typically towards the end of the budgeting process. So we can kind of figure out what those cash flows will be, we'll need some of the beginning budgets in order to figure out what the cash flow will be, we'll need the sales budget to get