Choice "A" is correct. The main reason for preparing a cash budget is to anticipate cash flows so that excess cash can be invested and to minimize the need for interim financing.Choices "d" and "b" are incorrect. A budget would not be used to support the statement of cash flows or balance noncash and cash activities of the company (which are based on actual uses of cash, not budgeted).Choice "c" is incorrect. Capital projects often require the use of various types of financing. The annual cash budget, while it considers these issues in determining the amount of external financing to obtain, is not specifically developed to ascertain which capital expenditure projects are feasible, etc. The capital expenditure budget must be done before the cash budget can be prepared.