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Bernstein, L., & Wild, J. (1999). Analysis of financial statements. Massachusetts, NY: Mc-Graw Hill Education.

The authors have created a powerful guidebook for bankers, investors, and students of financial courses who rely regularly on financial statements to conduct analysis and understand financial positions of their investments and companies. Financial contemporaries have described the book as the most useful guide for results-driven financial analysis. The guidebook helps the readers clearly understand the major financial statements used by companies including the cash budget. The authors also describe the importance of these financial statements as well as how to analyze and interpret each one of them. Understanding how financial statements such as cash budgets will help the investors, and business professionals take advantage of financial opportunities that may become apparent with the analysis of financial statements.

Furthermore, the authors insist that in-depth knowledge of how financial statements are prepared, analyzed, and interpreted will assist the discerning business professional to sidestep previously unforeseen financial risks. They have placed a lot of emphasis on the cash budget as well as how this particular financial statement correlates to other statements used in the corporate world.

Several pages illustrate to the reader how to prepare a cash budget and how to interpret it. The authors use the latest accounting principles in the preparation of the sample cash budgets. For instance, most of the cash flow budgets are created using the FAS 95, a contemporary accounting principle/method.

The readers are given a simple background on the financial details of the company so that they can better understand how each entry on the cash budget is made and where it originates. Furthermore, the authors give real-life examples of cash budgets and their implications on managerial decisions.

Colander, D. C. (2013). Economics (9th ed.). Retrieved from The University of Phoenix eBook Collection database.

This textbook reviews economics. In Part I, the author discusses thinking like an economist. The author points out the different market structures of companies, and how each market is defined and how they operate. The author reviews supply and demand, and what the economic factors that affect the supply and demand in the economy. In Part II, the author discusses the components of microeconomics, and how microeconomic factors affect the economy such as price elasticity, government interventions, and international trade. Part III discusses macroeconomics. The author discusses macroeconomic problems in Part V such as unemployment and inflation.

Muro, V. (1998). Financial Analysis for Corporate Managers. New York, NY: AMACOM.

Muro is a veteran financial analyst who has worked in the United States and the Phillipines. His breadth of knowledge on financial matters comes alive in this guidebook. The author applies a variety of financial techniques to 20 business situations to demonstrate how effective financial statements are in increasing the value of a company.

The author intimates that financial statements such as the cash budget can help managers make crucial decisions about their business enterprises. A cash budget and other financial statements can help the manager determine the most profitable product mix. The cash budget will highlight the expected sales for a certain period. If the manager wants to increase the company’s profits, he simply looks at the cash budget to see which products earn the most revenue in terms of sales. The cash budget alongside other financial statements will also aid the management in determining the most efficient way to improve capacities and product lines as well as reduce costs associated with production.

Oxford Journals. (2002). Retrieved from http://icc.oxfordjournals.org/content/11/5/895.short

The market force is what effects the price dynamics and puts up what is the long term and short term trends. Companies that understand what the market place is doing and where the trend is at the time can help them make money. This is what can help investors want to put more into a company or even join a new one. Companies should always know the long term of what is going to happen to the market place so, they know where the money is going to go. They will then have the understanding of what areas need to be invested in with more or less money. The profit is what a company like Precision Machines is looking for and having the understanding of their market place and how the money is being used will help them with the growth of the company.

Van Horne, J., & Wachowicz, J.M. (2001). Fundamentals of Financial Management (11th Ed). Upper Saddle River, NJ: Prentice Hall.

Van Horne and Wachowicz (2011) take the financial learner on a journey through the financial decision making process. The authors also demonstrate to the learners how to interpret the impacts that various financial decisions have on value creation and addition in the company. According to the authors, financial decisions can only be effectively made if the manager has the right instruments for analysis and prediction of financial data at his disposal. The authors guide the students on the importance of such instruments to the financial decision making process. They also help the students understand how these instruments are prepared.

A good example of a financial instrument that the authors introduce to the learner is the cash budget. The authors analyze the importance and the implications of not having a properly constructed cash budget. They then delve into the preparation and analysis of the said financial record with the aim of guiding the learner on the preparation and interpretation of the cash budget.