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    This addresses how several items would affect a cash budget.

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    Use the following information to answer questions # 23 through 28
    For each of the transactions listed below, indicate the effect it will have on the cash budget: P = Positive effect; N = Negative effect; 0 = No effect (Hint: how does the transaction below affect cash flow, in the current period, with only the amount of information provided?)

    23. current credit sales
    24. current cash sales
    25. stock repurchase
    26. sale of bonds
    27. collection of receivables
    28. repayment of debt

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    Solution Preview

    23. Current credit sales have no effect on cash cash flow in the current period. 0
    24. Current cash sales have a positive effect on cash flow in the current ...

    Solution Summary

    The solution provides the correct answers for how each item listed would affect the cash budget. Items are rated by positive effect, negative effect, or no effect.