Original Cash Budget

Revised Cash Budget

b) Considering the recommended changes, what type of current asset investment policy do these actions typically reflect? What reasons would management have for making the changes? Explain and support your response to each question.

c) Illustrate and explain how the recommended changes would impact the surpluses and external funds needed. What are the potential advantages and disadvantages of implementing the actions without adjusting overall sales? The response should relate the basic goals of cash management, the goal of each action individually, as well as the combined effect on the cash budget. What additional actions can management take to improve the cash budget for the remaining years of the 4-year operating plan (2021, 2022, 2023) that can increase FCF and intrinsic value? This should entail incorporating the recommended changes that were made when completing the Chapter 12 BAM and any relevant concepts and data from Chapter 15 BAM, while relating to the cash budgets.

Flagstaff Inc. Projected Monthly Cash Eudget (data in millions of dollars) Flagstaff Inc. Projected Monthly Cash Eudget (data in millions of dollars)