Kate is a financial manager at Heartland Feeds, a producer of feed products for cattle. She produces a budget that shows the anticipated receipts and expenses of the company. The budget also shows her the amount of working capital available and whether it is likely that the company will need to obtain loans. This is the last budget that Katrina produces for the upcoming year. Which type of budget is this?
A) Master budget.
B) Cash budget.
C) Cost production budget.
D) Production budget.
E) Sales budget.

Question

Quizplus · Accepted Answer

The cash budget should be prepared after all other budget estimates are completed. The cash budget shows the anticipated receipts and expenditures, the amount of working capital available, the extent to which outside financing may be required, and the periods and amounts of cash available.

Kate Is a Financial Manager at Heartland Feeds, a Producer