Cash Budget Preparation: Identifying Non-Relevant Items

a. estimated depreciation expense for October

Depreciation expense is a non-cash expense. It represents the allocation of the cost of an asset over its useful life. While depreciation is important for determining net income, it doesn't impact cash flows and therefore is not included in a cash budget.

Here's why the other options are relevant to a cash budget:

• b. budgeted sales and collections for October: This determines the cash inflows expected during the month.
• c. beginning cash balance on October 1: This is the starting point for the cash budget.
• d. budgeted salaries expense for October: This represents a cash outflow for payroll.