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Analyze variances in cash flow forecasts for LMN Corporation using the following data: Category Forecast ($) Actual ($) Cash Inflows $200,000 $180,000 Cash Outflows $150,000


  1. Analyze variances in cash flow forecasts for LMN Corporation using the following data:
CategoryForecast ($)Actual ($)
Cash Inflows$200,000$180,000
Cash Outflows$150,000$160,000

Requirements:

  • Calculate the variance for cash inflows and outflows.
  • Analyze the variances into favorable and unfavorable components.
  • Present the analysis in a detailed table format.
  • Discuss potential reasons for variance and corrective actions.

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