Economy declined significantly and management is concerned

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Since management prepared the original cash budget that your assignment was based on, the economy declined significantly and management is concerned that the projected sales levels may not be attained. In fact, management now believes the potential exists for a 20% shortfall from projected sales levels. What flexibility exists in the cash budget to reduce or defer cash outlays and what steps do you suggest that the company take. Be specific and use an example.

Reference no: EM131903171

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