Purchase Solution

Using Accounts Receivable to Improve Cash Flow

Not what you're looking for?

Ask Custom Question

How can a credit manager use accounts receivable to improve cash flow? What are the risks involved?

What are the reasons behind adopting a zero-based budget? Do you agree with those reasons?

Is it better to amend a budget or allow for budget variances? Why or why not?


Purchase this Solution

Solution Summary

The expert uses the accounts receivable to improve cash flow.

Solution Preview


1) If cash flow is a major issue, accounts receivables can be a gold mine of cash. Sometimes in certain markets, the competitive situation requires that sellers offer credit terms to their customers. Asking customers to pay cash up front can severely hurt business. So, other options include offering credit terms, but with an incentive to pay early by discounting the amount owed. For example, offering 30 days credit, but if the customer pays say within 10 days, he can take a 1% discount. This will encourage better cash flow at a relatively small cost. The ...

Purchase this Solution

Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.