Assignment:

You are required to write a $1,000$ word report answering the following set of questions that apply to the picture below.

Required:

The director of Skip does not have any experience in management accounting and has asked you to write a report explaning clearly.

$($a$)$ Discuss why a cash budget is required for a business and explain how it will help in decision$-$making $($include the $3$ advantages and $3$ disadvantages of the cash budget$)$

$($b$)$Therefore$,$ to support your discussion from part $($a$),$ you are required to prepare a cash budget for Skip Ltd for the six$-$month period to $30$ June $2024.$

$($c$)$ With help from the information, you have gathered from the cash budgets $($part b$),$ explain what Skip Ltd can do to improve its cash flow position.