cash flow forecast

a) Explain why cash flow forecast budgets are so important for a manufacturing company? (2 marks)

b) 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)

d) What tactics can a business use to reduce the time of its operating cash cycle? (2 marks)