The cash budget is the primary short-term financial planning tool.The key reason(s) that a treasurer creates a cash budget is (are)

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The primary reason for creating a cash budget is to estimate the size and timing of the firm's new cash flows and to prepare for potential financing needs. The cash budget allows the treasurer to understand how much cash the company will have on hand, when it will be coming in, and how it will be used. This information is critical in making decisions about financing, including whether the company needs to raise additional funds or whether excess cash can be invested. While estimating the firm's investment in assets is important, it is not the primary motivation for creating a cash budget.

The Cash Budget Is the Primary Short-Term Financial Planning Tool