Stacyu07a2 - 1 JenniferStacy November18,2010...

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Cash Flow Decision Making 1 Cash Flow Decision Making-u07a1 Jennifer Stacy November 18, 2010 Maureen Steinwall
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Cash Flow Decision Making 2 Scenario 1: Over the past five years, your organization has experienced increasingly negative  cash flow, requiring the business to take out a line of credit through a local bank to supplement  cash shortfalls. Describe, in detail, the practices you would recommend to improve cash flow.  Consider credit policies, collections, product pricing, and accounting processes, for example. Be  sure to consider options for operating, financing, and investing activities, in your answer. Where negative cash flows are experienced for a prolonged period of time it is normally  indicative of operating problems. Therefore, one of the first things to review for corrections  would be the assets and liabilities which are directly under the control of the business. First,  accounts receivable collections need to be reviewed to see if the company needs to more  aggressively purse payments from it customers. At the same time, the company may want to 
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