A. Explain what are Cash Budgets and its importance to your business. Your answer should include a definition, the advantages and disadvantages of cash budgeting in relation to your business.

B. Identify three major (3) cash inflows and three (3) major cash outflows in your business for the next three (3) months. You should explain why you chose these cash flows and how they affect your business

C. Using the cash flows in Part B, draft a Cash Budget for the next three months using a cash budget format, showing the inflows and outflows for each month.