Read the following case study focusing on cash flow forecasting:
https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=116061 and download the available document
Since joining the company, John Thistle, the management accountant has focused much attention on planning and control of the business through the introduction of the budgetary control system. When formulating the plans and budgeted financial statements for Year 03, which featured in the case study on interpretation of financial statements, John spent time on forecasting the cash flow for the budget period.
Are there any observations that you can make from reading this case? Do you agree or disagree with Thistle's approach? Explain your answer.