Please answer each of the following questions in detail. Provide in-text citations and include

examples whenever applicable

1. Please explain fixed and flexible budgeting. Provide an example of budgeting for three consecutive

periods in which safety margin is included for flexibility

2. Explain statement of cash flows proforma and its significance in budgeting. Provide a hypothetical

example of financial statements consisting of an initial balance sheet, income statement, statement

of cash flows and ending balance sheet in a manufacturing enterprise.