Improving cash flow and profitability Flashcards
1
Q
What is cash flow
A
The time of payments and receipts, movements of cash into and out of a business
2
Q
How to speed up cash inflow
A
Incentive for early repayment
Reduce trade credit given to customers
Sell stock at discount
Inject fresh capital into the business
3
Q
How to speed up cash outflow
A
Delay payment to suppliers
Increase trade credit with suppliers
Cut cost (in functional areas)
4
Q
Factors causing cash flow problems
A
Overtrading
Unexpected costs
Poor credit control
Too much trade credit to customers
5
Q
Way to increase revenue
A
Increase price
Marketing (awareness)
Value to product
Reduce costs
6
Q
Why unprofitable
A
No demand
Wrong selling price
Low contribution per unit
Poor cost management
No growth
7
Q
How to reduce costs
A
