Final answer:
To calculate cash available to retire debt, one must determine if there's a cash surplus at the end of each month by comparing tax revenue and spending. An end-month cash surplus implies cash is available to retire debt; if there's no surplus, the amount is 0. This surplus or deficit affects the annual budget and consequently the national debt.
Step-by-step explanation:
The task involves calculating the cash available to retire debt for a government or an organization. This is determined by the cash surplus at the end of each month. A cash surplus occurs when the shortfall/surplus cash is greater than 0, indicating that revenue is higher than expenses for the period. In the context of a government budget, we compare tax revenue against spending to determine whether there's a surplus (revenue > spending) or a deficit (revenue < spending). If there is a cash surplus at the end of a month, it can be allocated to retire debt. If there's no surplus, the cash available to retire debt is 0.
Furthermore, it's important to understand that a budget deficit or surplus is different from the national debt. The deficit or surplus is an annual calculation of revenue versus spending, while the national debt is the aggregate of all past deficits and surpluses.