True and False

1. When there is a need for preliminary calculations to determine total assets and depreciation for firms with many different products, it is best practice to make these calculations on the cash budget.

2. The cash inflows from the sales of assets or issuing bonds or stock should be excluded from a cash budget.

3. A breakdown of expected total assets and depreciation should be in the worksheet area of the cash budget.

4. There is no need to show the preliminary calculations of revenue in the cash budget.

5. Regardless of tax laws or accounting conventions, it is important to include all expected cash inflows and outflows on the cash budget when they are scheduled to occur.

6. Because dividends represent a very real cash expenditure for the firm, a cash budget should include dividends as cash outflow.

7. Unadjusted Cash Balance is equal to Beginning Cash Balance minus Total Collections plus Total Disbursements.

8. Seasonality is not important for the sales forecast in a cash budget.