Whitewater Inc. is has completed their first draft of the budget for next year. The CEO does not like the results. The net income is too low. The CEO has asked the purchasing department to investigate cheaper raw materials. Buying cheaper raw materials will reduce direct material cost by $3 per unit. 1) What effect will this lower purchase price have on the budgeted statement of cash flows? (6 points) 2) What nonfinancial considerations need to be considered? ( 4 points)