Chapter 22, Problem 22.1DC

To determine

Cash budget: A cash budget is a budget which records the expected cash inflows and outflows of a company during a particular period.

Budgeted income statement: The statement which shows the difference between the expected income and expected expenses of a company is called a Budgeted income statement.

Budgeted balance sheet: A budgeted balance sheet is an estimation regarding assets and liabilities and equity of a company for particular period of time.

Requirement 1:

:The preparation of cash budget, budgeted income statement and budgeted balance sheet.

Requirement 2:

To determine

: The action or decision to be taken.

Requirement 3:

To determine

: The non-financial factors that should be a part of the decision.