The cash budget helps managers determine whether or not the company will need financing in a given month.

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The cash budget is a financial tool that allows managers to anticipate the cash inflows and outflows of the company over a specific period of time (usually a month). By projecting the company's cash position, managers can determine whether there will be any shortfalls that will require financing, such as a bank loan or a line of credit. Therefore, the cash budget is an important tool for managing a company's financial resources and ensuring that it has the necessary cash flow to meet its obligations.

The Cash Budget Helps Managers Determine Whether or Not the Company