The correct answer is: D. Depreciation charges.
A cash budget is a financial statement that projects a company’s future cash inflows and outflows. It is used to help a company manage its cash flow and ensure that it has enough cash on hand to meet its obligations.
Depreciation charges are included in a cash budget because they represent a cash outflow. When a company depreciates an asset, it is essentially recognizing that the asset is losing value over time. This loss in value is recorded as an expense, which reduces the company’s net income. However, the company does not actually have to pay out any cash when it depreciates an asset. Instead, the depreciation expense is simply recorded on the company’s income statement.
Patent amortisation, goodwill, and dividends are not included in a cash budget because they do not represent cash outflows. Patent amortisation is the process of allocating the cost of a patent over its useful life. Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net assets. Dividends are payments that a company makes to its shareholders out of its profits.
In conclusion, the only option that would be included in a cash budget is depreciation charges.