Chapter 4, Problem 4.10P

a)

Summary Introduction

To calculate: Quarterly personal budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows of a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

b)

Summary Introduction

To calculate: Cash deficit.

Introduction:

Cash deficit is a situation when expenses are more than income or when there is a shortage of funds to satisfy the current debts.

c)

Summary Introduction

To calculate: Cumulative cash deficit or surplus.

Introduction:

The cumulative cash flow is the summation of all the net cash flows from financing, operations, and investing activities.