When a company is preparing a budgeted cash flow statement and they wish to calculate the payments to suppliers for purchases of inventory, they should refer to which of the following?
A)Budgeted balance sheet
B)Budgeted cash payments for purchases
C)Budgeted cash collections
D)Sales budget

Question

Quizplus · Accepted Answer

The budgeted cash payments for purchases will provide the necessary information on the expected cash outflows related to inventory purchases.

When a Company Is Preparing a Budgeted Cash Flow Statement