1.
The cash budget is a part of the financial statements which is a plan for the cash receipts and expenses for a particular accounting period. This budget gives an estimation of all the
The cash that G expects to collect as service revenues.
2.
a.
Whether the company will able to cover its requirement for money in May or not according to answer in part 1.
b.
The total net cash for May and the amount that the company needs to borrow to cover the cash payments in the situation (1) May total revenues may remain same and total costs might be 8% higher, (1) May total revenues might be 5% lower and total costs might be 8% higher and (2) May total revenues might be 10% lower and total costs might be 8% higher.
3.
To explain: The reason for the preparation of cash budget and whether it is helpful or not.
4.
Whether G depot take the purchase discount or not.
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Cost Accounting (15th Edition)
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