Managers are alerted to projected cash shortages by means of the:

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Cash budget is a financial statement that summarizes a company's anticipated cash inflows and outflows over a specified period. The cash budget can help management identify and plan for projected cash shortages, making it the best choice in this scenario. The statement of sources and uses of cash and pro forma balance sheet provide valuable financial information but not specifically related to projected cash shortages. Monthly bank statements provide past transaction data but may not provide enough visibility for future cash flow planning.

Managers Are Alerted to Projected Cash Shortages by Means of The