1. What are the major precautions that need to be taken care of while projecting cash flows? Explain. 2. Differentiate between LILO, FIFO and average cost method for the valuation of inventory with...

1. What are the major precautions that need to be taken care of while projecting cash flows?

Explain.

2. Differentiate between LILO, FIFO and average cost method for the valuation of inventory with the help of an example. What are the advantages and disadvantages of each method?

3. Define break-even point. What is the significance of computing it?

4. What are the major shortcomings of break-even analysis? Explain