Which of the following is typically excluded from a cash budget analysis?

In preparing a cash budget, one key aspect is that the analysis typically focuses exclusively on cash inflows and outflows. Depreciation charges, while important for understanding the overall financial picture and impacts on net income, do not involve actual cash transactions. This means they aren't included in cash budgets because cash budgets are concerned with the liquidity and actual cash status of the entity rather than accounting concepts that do not reflect cash flow.

Cash purchases, interest income, and drawings all relate to specific cash movements. Cash purchases represent immediate cash outflows for goods; interest income reflects cash inflows from interest earnings; and drawings are cash withdrawals made by the owners from the business. Since each of these items involves real cash transactions occurring during the budget period, they are analyzed in the cash budget.

By excluding depreciation from the cash budget, the analysis remains focused on tangible cash flow, enabling a clearer understanding of the liquidity position of a business.