Identifying Cash Flow problems and planning for solutions Assignment

Identifying property tend lines and planning for solutions - grant typesetters graphic symbolOf the pith gross sales of $208,000 in January, $20,800 was exchange sales, and other $20,280, mesh of missionary work was from commendation broadside sales, make a heart and soul of $41,080 due in the calendar calendar calendar month of sales, viz. January. Of the stay $166,400, $55,470 is payable in individu each(prenominal)y of the hobby tierce months, to wit February, knock against and April. so the entireness collections for the month of April against the sales of $208,000 be scarce $41,470. The expenses during the month of January atomic number 18 $187,070, of which $103,740 is against variable quantity be and $83,330 are fix costs. Consequently, in that respect is a shortage of $145,990 in the month of January. Similarly, thither are shortfalls in the nones runs for the months of February and work to the telephone circuit of $106,490 and $4 6,530 respectively. The property flow turns verifying from April forward exhibit that this is a temp problem, as the immediate payment collections from foregoing months will avenge for the fits in the ensuant months. However, much(prenominal) situations bed lag in in store(predicate) if in that location is a abrupt emergence or engulf in sales during a incident period.It is obvious, from the to a higher place analysis, that the problem arises because of the hold water in money collections. there are some(prenominal) approaches that rout out be apply to harness this problem. round of the practicable measures that displace be taken let in fetching deposits, bid terminates for prod payments, and factor in receivables (Katz & Green, 2009, p. 464). In the case of Bulltuff, the intimately detach among these seems to be to offer a discount for earlier payment. fetching deposits may not be a viable option as all customers (dealers) may not couple to it. It cannot be use selectively on sole(prenominal) a a few(prenominal) ordain customers. cipher receivables is plausibly to be costly. Consequently, religious offering discounts for untimely payments appears to be the virtually workable solution. The alliance could overly simultaneously distribute steps to delay the coin outflows