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The cash budget is used primarily as a planning tool to forecast cash inflows and outflows (usually monthly) out into the future. The following graph
The cash budget is used primarily as a planning tool to forecast cash inflows and outflows (usually monthly) out into the future. The following graph summarizes the results of such a forecast for a construction company: a) What three (3) aspects of cash flow surpluses/deficits does the cash budget aim to forecast? List/define them below and label on the above graph. b) Why would knowing the information from part (a) in advance be beneficial to a company
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