The primary purpose of a cash budget is to

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The primary purpose of a cash budget is to provide a detailed plan of future cash flows. A cash budget takes into account all cash receipts and payments during a specific period, allowing a business to anticipate future cash needs and plan accordingly. This can involve identifying potential cash shortages and implementing strategies to address them, or identifying opportunities to maximize cash flow and increase profitability. While determining investment in current and fixed assets and financing needs are important aspects of financial planning, they are not the primary purpose of a cash budget. Similarly, estimating income tax for the year may be part of financial planning, but it is not the primary purpose served by a cash budget.

The Primary Purpose of a Cash Budget Is to