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Cash budgets can provide a general framework for predicting asset requirements, but they may not accurately capture the timing and impact of lumpy asset purchases. Since these purchases often occur in large amounts and irregular intervals, cash budgets may understate or overstate cash needs in specific periods. To improve predictions, it's essential to integrate detailed forecasts of capital expenditures alongside the cash budget, allowing for a more precise alignment with cash flow realities.

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2mo ago

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