explain how the cash budget and the capital


Explain how the cash budget and the capital budget relate to pro forma financial statements.

The cash budget depicts the projected flow of cash in and out of the firm for fixed time periods.  The capital budget exhibits planned expenditures for main asset acquisitions.  Forecasters incorporate data from these budgets into pro forma financial statements within the assumption that the budget figures will, actually take place.

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Financial Management: explain how the cash budget and the capital
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