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How do you reconcile the cash budget to the budgeted balance sheet?

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Answer

The cash budget's closing cash balance should equal the cash figure on the budgeted balance sheet, and movements in receivables, inventory, and payables in the cash budget should match the changes between the opening and budgeted balance sheets. Reconciling them confirms the budgets are internally consistent.
Real-world example The year-end cash in the cash budget must equal the cash line on the budgeted balance sheet.

Common follow-ups: What links the two? | What does a mismatch reveal?

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All 34 Cash Budgeting questions