The key input to any cash budget is ________.

Question

Quizplus · Accepted Answer

The sales forecast is the most important input in developing a cash budget as it determines the expected cash inflows. Without a reliable sales forecast, it is challenging to predict cash flows and plan accordingly. The production plan and pro forma balance sheet can also provide valuable inputs, but they are not as critical as the sales forecast. Tax laws may impact the cash budget but are not a key input.

The Key Input to Any Cash Budget Is ________