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
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.