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6. Cash Budgets After developing the income statements, Alice decided to see what would happen to the cash position of Darnell during the quarter. When

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6. Cash Budgets After developing the income statements, Alice decided to see what would happen to the cash position of Darnell during the quarter. When Mr. Darnell actually turns the business over to Robert, Mr. Darnell will withdraw all cash. All receivables will be due to Robert, and all payable will be his responsibility. Robert expects to pay $30,000 for the business, which will be a liability of the business, and he intends to deposit $10,000 in the rms' checking account to establish a working balance. (Both amounts are included on the Balance Sheet as of Jan. 1)

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