As a financial manager of a small firm, Jerry needs to determine how much his company will have to borrow in the coming months, and when the borrowed funds will be needed. The preparation of the cash budget will help.

Question

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The cash budget is a financial statement that outlines the inflows and outflows of cash for a specific period, typically a month or a quarter. By preparing a cash budget, Jerry can project his company's future cash flows and identify when the company will have surplus cash and when it will need to borrow funds. Knowing the borrowing requirements and timing is essential for effective cash management and helps to ensure that the company has enough liquidity to meet its daily obligations.

As a Financial Manager of a Small Firm, Jerry Needs