Which of the following is NOT a component of a cash budget?

A cash budget is a financial plan that outlines an organization's expected cash inflows and outflows over a specific period, typically on a monthly basis. It is essential for managing cash flow to ensure that there are sufficient funds to meet obligations.

Receipts, disbursements, and cash surplus or deficit are all fundamental components of a cash budget. Receipts refer to the cash inflows expected from various sources such as sales, investments, or financing. Disbursements detail the cash outflows for expenses such as operating costs, salaries, and other expenditures necessary for the business operations. The cash surplus or deficit helps determine the overall financial health in terms of cash flow, indicating whether there will be excess cash available or a need for financing due to shortfalls.

Inventory levels, though important for operational management and decision-making regarding production and sales, do not directly reflect cash flow movements in a cash budget. Therefore, they are not considered a component of the cash budget, making this the correct choice for what is not included in a cash budget.