Why do companies compile a budget balance$$ sheet?

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Part $1$

A$.$

A balance sheet reflects the expected ending balance for each account that is an$$ asset, an$$ obligation, or equity. It is important to understand the relationships between these$$ accounts, such as expected current assets for liquidity.

B$.$

A balance sheet budget is needed to give companies an idea of how much cash they have to purchase new fixed assets on a yearly basis. This is important for companies to determine financing.

C$.$

A budget balance sheet is compiled to allow companies to determine the level of cash needed at any given point during the fiscal year. It projects cash inflows and outflows and any potential cash shortages.

D$.$

A balance sheet reflects the activity of the business during a set period of time. It is important to understand the relationship between the anticipated income and expected expenses.