Adriana is a financial manager at Environmental Fuel Inc., a producer of ethanol for use as an alternative fuel. She makes a budget that shows the anticipated receipts and expenses of the company. As the last budget that she creates for the upcoming year, it also shows the amount of working capital available and whether the company will need loans. Which of the following types of budgets has Adriana created?

Question

Quizplus · Accepted Answer

A 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.

Adriana Is a Financial Manager at Environmental Fuel Inc