All 34 The Master Budget questions
More in The Master Budget
What is the selling and administrative expense budget? What is the ending inventory budget? What are the three financial statements produced by the master budget? Why is the master budget prepared before the period begins? What is the first budget prepared in the master budget and why? What is a budgeted income statement used for? In what order are the components of the master budget prepared? How is the budgeted income statement prepared? How does the cash budget fit within the master budget? What is the cost of goods sold budget and how does it link inventory budgets?
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Budgeting & Forecasting › The Master Budget

What is a pro forma cash flow statement in the master budget?

Beginner

Answer

It is the budgeted cash flow statement, projecting cash generated and used across operating, investing, and financing activities for the period. It complements the cash budget (which is often a detailed receipts-and-payments schedule) and shows the sources and uses of cash in a standard statement format.
Real-world example The pro forma cash flow shows budgeted operating cash inflow funding investing outflows for new equipment.

Common follow-ups: What three activity categories does it show? | How does it relate to the cash budget?

Cash Budgeting Capital Budgeting The Master Budget
All 34 The Master Budget questions