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

Question

Quizplus · Accepted Answer

The budgeted cash payments for purchases will provide information about the expected payments to suppliers for inventory purchases. The budgeted balance sheet will show the expected ending cash balance, but does not provide specific information about payments to suppliers. The budgeted cash collections will show the expected cash receipts, but again does not directly relate to payments to suppliers for inventory. The sales budget shows the expected sales, but does not provide information about specific payments to suppliers for inventory purchases.

When a Company Is Preparing a Budgeted Cash Flow Statement