Recently Deloitte published a report regarding management of cash flow during a period of crisis based on the Covid-19 situation arguing that firms should understand the extended supply chain and create sufficient reserves to ensure business continuity. Your finance manager is very concerned with a decline in the economy and recent financial results are not satisfactory. The CFO needs to decide on creating some cash reserves, despite the fact he feels much safer to have a larger inventory than before. You have been asked to determine and explain the appropriate approach for the company to formulate a Cumulative Capital requirement by providing specific reasons and explaining what the firm should do when outlying. Furthermore, explain the trade-offs involved in the decision of how much inventory or cash the firm should carry. Ensure you answer both CFOs questions, and you may use the graph to support your positions.