Discuss the purpose of the cash budget .

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Chapter 8, Problem 9DQ

a.

To determine

Discuss the purpose of the cash budget.

b.

To determine

Describe the excess cash to be used when the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months.

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What revenue sources allow this budget to be balanced in each year? What revenue source will have the greatest impact on the budget? What assumptions have been made with respect to revenue sources? What two expenditures will have the greatest impact upon the budget?

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