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Eleanor's Mittens, Inc., a merchandising company, wants to prepare the budgeted balance sheet for the next budget period. For this purpose, the amount of ending cash balance can be retrieved from the ________.

A) capital expenditures budget
B) budgeted funds flow statement
C) cash budget
D) sales budget

1 Answer

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Final answer:

The ending cash balance required for preparing Eleanor's Mittens, Inc.'s budgeted balance sheet can be found in the cash budget. The cash budget provides detailed projections of cash inflows and outflows over a certain period.

Step-by-step explanation:

Eleanor's Mittens, Inc., a merchandising company, wants to prepare the budgeted balance sheet for the next budget period. The amount of the ending cash balance can be retrieved from the C) cash budget. The cash budget is a financial plan that details a company's projected cash inflows and outflows over a specific period. This budget is crucial for ensuring that the company can meet its short-term liabilities and helps in managing its cash flow effectively. Other budgets, like the capital expenditures budget, budgeted funds flow statement, and the sales budget serve different purposes within a company's budgeting process but the ending cash balance is typically found in the cash budget.

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