Which of the following statements is/correct regarding the Cash Budget? The cash budget is a statement of a firm's planned inflows and outflows of cas that is used to estimate its long-term cash requirement Cash budgets and pro forma statements are useful not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS) IL A cash budget gives the financial manager a clear view of the timing of a firm expected profitability over a given period IV Since depreciation and other noncash charges represent a scheduled write- off of an earlier cash outflow, they should not be included in the cash budget, thougt depreciation charges will affect the taxes that a firm pays O Il and III I and IV OV only O l onty

Q: What are the pro forma financial statements?

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A:

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A:

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A: Option d is correct.

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Q: 1. What is the difference between strategic and operational plans?

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Cash budget

A cash budget is an estimate of an organization's cash flow for the future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future. If cash receipts are insufficient to cover future expenses, an organization may plan to obtain funds from other sources. After estimating the sales, purchase, and capital expenditure budgets for the year, management develops a cash budget. These budgets are created to ensure that an organization's cash flow is managed. It is important to note that only cash transactions are recorded when actual cash enters and exits an organization.