Budgeting Process and Cash Flow Forecasting: A service company is preparing its cash flow forecast for the next quarter. The company expects cash inflows from operations of $100,000, cash outflows for operating expenses of $70,000, and interest payments of $10,000. Additionally, the company plans to purchase new equipment for $50,000 and repay a loan of $20,000. Prepare the company's cash flow forecast and discuss the importance of cash flow forecasting in managing liquidity and financial risk.