Finance - Cash Flow Problems + Solutions Flashcards
1
Q
List the 5 cash flow problems
A
- Sales are decreasing
- Purchasing are increasing
- Wages are increasing
- Closing balances decreasing
- Paying for the asset in full
2
Q
Give 2 solutions for fixing decreasing sales
A
- Increase selling price
- Increase promotions
3
Q
Give 3 solutions for fixing increasing purchases
A
- Find a cheaper supplier
- Ask for bulk-buying discount
- Ask for trade credit
4
Q
Give 3 solutions for fixing increasing wages
A
- Reduce staff hours
- Offer no overtime
- Make redundancies
5
Q
Give 2 solutions for fixing decreasing closing balance
A
- Reduce number of payments
- Find cheaper premises to reduce rent payments
6
Q
Give 2 solutions for fixing paying for the asset in full
A
- Lease the asset
- Use hire purchase
