Liquidity planning primarily is designed to assist management in dealing with relatively predictable events.

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Liquidity planning is a proactive measure aimed at anticipating and addressing foreseeable cash flow issues or funding needs, such as payment obligations, business expansion, or cyclical demand fluctuations. By forecasting cash inflows and outflows, assessing the availability and sources of funds, and setting appropriate cash reserves and credit facilities, liquidity planning enables management to manage liquidity risks and make informed decisions about investing, financing, or distributing profits. While liquidity planning cannot eliminate all uncertainties or unexpected events, it provides a framework for mitigating their impact and ensuring ongoing financial stability and growth.

Liquidity Planning Primarily Is Designed to Assist Management in Dealing