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Cash Budget - Cash Budget (sales,...

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Cash Budget The  cash budget  is prepared after the operating budgets (sales, manufacturing expenses or  merchandise purchases, selling expenses, and general and administrative expenses) and the capital  expenditures budget are prepared. The cash budget starts with the beginning cash balance to which  is added the cash inflows to get cash available. Cash outflows for the period are then subtracted to  calculate the cash balance before financing. If this balance is below the company's required balance,  the financing section shows the borrowings needed. The financing section also includes debt  repayments, including interest payments. The cash balance before financing is adjusted by the  financing activity to calculate the ending cash balance. The ending cash balance is the cash balance  in the budgeted or pro forma balance sheet. 
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