Stacyu07a2 - CashFlowDecisionMaking 1...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Cash Flow Decision Making 1 Cash Flow Decision Making-u07a1 Jennifer Stacy November 18, 2010 Maureen Steinwall
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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  review its credit and sales procedures to see if its credit standards are too lax and if it can 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/09/2010 for the course BUS BUS3060 taught by Professor Steinwall during the Fall '10 term at Kaplan University.

Page1 / 4

Stacyu07a2 - CashFlowDecisionMaking 1...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online