Question

what does a cash budget look like when starting

Answer 1

The cash budget starts with the opening cash balance which has been carried from the last year. These opening cash flows are then added to the the available cash flows during the year in order to arrive at the net cash flows and all the cash outflows which has been paid during the year will be deducted in order to arrive the net cash flow at the end of the year which is to be carried forward for the next year.

if the net cash flows which has been arrived is lesser than the required cash flow of the company, then the company will be needing the external borrowing in order to fulfill with the deficiency,if it is surplus then the company will be rather investing into its project and company is highly liquid.