Forecast the cash flow for Facebook, Inc. for the next quarter using the following assumptions:

• Expected Sales Revenue: $25,000,000
• Expected Expenses: $15,000,000
• Depreciation Expense: $3,000,000
• Expected Changes in Working Capital:
  • Accounts Receivable: $1,500,000 increase
  • Inventory: $700,000 decrease
  • Accounts Payable: $1,000,000 increase
  • Prepaid Expenses: $500,000 decrease

Prepare a cash flow forecast and discuss potential cash management strategies.