Budgeted cash payments for inventory would appear on the:
A) inventory purchases budget and the pro forma income statement.
B) capital budget and pro forma statement of cash flows.
C) cash budget and pro forma balance sheet.
D) inventory purchases budget and pro forma statement of cash flows.

Question

Quizplus · Accepted Answer

Budgeted cash payments for inventory are directly related to the inventory purchases budget, which outlines the expected inventory needs and associated costs. These payments also affect the company's cash flow and are therefore included in the pro forma statement of cash flows, which forecasts the company's cash inflows and outflows over a period.

Budgeted Cash Payments for Inventory Would Appear on The