If the cash flow forecast suggests that Whitehouse crafts might require an overdraft at any time, what alternative actions could the management of Whitehouse crafts take that would avoid this situation? How does this illustrate the value of cash flow forecasting?
plz plz help me.
thank you.
2007-11-15 06:55:52 · 1 answers · asked by mo h 1 in Business & Finance ➔ Advertising & Marketing ➔ Other - Advertising & Marketing
Delay paying their debtors, put more effort into chasing their creditors ... hold off placing new orders, sell off existing stock, raise prices, look for cheaper sources of supply ... stop hiring, freeze pay, defer or reduce pay of non-essential staff.. encourage non-essential & less productive staff to leave ..freeze all non-essential expenditure.... start making redundancies .. sell-off non-essential assets .. increase Mortgage on buildings ...
The Cash Flow forecast is what allows them to predict they will run into (or over) their overdraft ... and thus take action in time to avoid a situation where they could soon find themselves unable to pay their bills and being declared Bankrupt.
2007-11-15 08:11:00 · answer #1 · answered by Steve B 7 · 1⤊ 0⤋