Select the Incorrect Statement Regarding the Cash Budget

Select the incorrect statement regarding the cash budget.

A) The cash budget helps managers to anticipate cash shortages and excess cash balances.
B) Cash inflows and outflows indicated on the cash budget are reported on a company's pro forma statement of cash flows.
C) Cash payments may include outflows for inventory, selling and administrative expenses, and equipment purchases.
D) The total cash available is calculated by adding cash receipts and the ending cash balance.