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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 $150,000
- Analyze variances in cash flow forecasts for LMN Corporation using the following data:
| Category | Forecast ($) | Actual ($) |
|---|---|---|
| Cash Inflows | $200,000 | $180,000 |
| Cash Outflows | $150,000 | $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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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
