Risky Rolling, Inc. is a rapidly expanding manufacturer of skateboards that have been modified for use on ski slopes during the off-season. This year’s sales are considerably higher than last year’s sales, and sales are expected to double next year. The unexpected growth in sales has presented numerous challenges to the company’s management team, and the stress is really starting to show. Laura Dennan, the company’s president, believes that the management time required to prepare a cash budget should be devoted to other, more pressing matters.

Required:

Write a memorandum to the president that states why cash budgeting is particularly important to a rapidly expanding company such as Risky Rolling.