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What are the three sections of a Cash Budget, and what is included in each section?
The three sections of a Cash Budget are the cash receipts section, cash disbursements section, and the financing section. The cash receipts section establishes the cash collections from the company as well as its customers. The cash disbursements section displays the necessary finances used to run the company such as materials, taxes, and labor. The financing section shows what is being borrowed and the repayments that are involved.

Why is a Cash Budget so vital to a company?
A Cash Budget is so vital to a company because it manages the company's finances in a manner where it is easy to determine their incoming and outgoing flow of cash within a given period of time. Finances of a company is better maintained through a cash budget.

What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash?
The five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash are the following:
Reduce receivables or average collection period - matter of reducing the time in which a company receives the money in which they are owed.
Increase payables or average payment period - high credit periods provides more gain for the company.
Manage inventory levels - not too much is spent on unnecessary inventory but also maintain enough to be able to provide customers with the product.
Plan major/capital expenditures - it is in the best interest of a company to maintain enough so they are not struggling financially and they have enough to work with.
Invest idle cash - company is able to capitalize money in which they are not using by considering profitable

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