Question

A cash disbursement forecast is impacted by the sales forecast because _____.

Answer 1

A cash disbursement forecast is impacted by the sales forecast because they are interconnected in a business.

Step-by-step explanation:

A cash disbursement forecast is impacted by the sales forecast because they are interconnected in a business. When creating a cash disbursement forecast, it is important to consider the expected sales revenue as it directly affects the cash inflow. For example, if the sales forecast predicts high sales, the company may need to increase its cash disbursements to meet the demand by purchasing more inventory, hiring additional staff, or investing in marketing.

Answer 2

A cash disbursement forecast is impacted by the sales forecast because the sales forecast determines the amount of revenue a company expects to receive. This revenue affects how much cash the company will have available to disburse for expenses such as salaries, rent, utilities, and other operational costs. If the sales forecast is high, the company may plan for more cash disbursements. If the sales forecast is low, the company may need to reduce its cash disbursements.

Step-by-step explanation: