A cash budget estimates a firm's expenditures for major assets like replacement of obsolete equipment and mergers and acquisitions.

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A cash budget estimates a firm's cash inflows and outflows for a specific period of time, typically on a monthly basis. It focuses on day-to-day operational expenses such as salaries, rent, utilities, and inventory purchases. It does not address major investments such as replacement of obsolete equipment or mergers and acquisitions, which would be included in a capital budget.

A Cash Budget Estimates a Firm's Expenditures for Major Assets