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Cash flow forecasts - short answer questions


Question 1

Explain why cash may be more important to a firm than profit.

Question 2

'Look, we have made $150,000 profit this year. What do you mean I can't afford to buy that Aston Martin?' Discuss this statement, made by the Chairman of a company to her Finance Director.

Question 3

Explain the statement 'The life blood of firms is cash, not profit'.