Question: Question 2 (8 Marks) Explain why cash flow forecast budgets are so important for a manufacturing company? (2 marks) Explain how it is possible for

 Question 2 (8 Marks) Explain why cash flow forecast budgets are

Question 2 (8 Marks) Explain why cash flow forecast budgets are so important for a manufacturing company? (2 marks) Explain how it is possible for a manufacturing company to earn a profit, while at the same time the company is running out of cash? (2 marks) c) What are the costs of holding too high a level of inventory? (2 marks) What tactics can a business use to reduce the time of its operating cash cycle? (2 marks)

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