Question 3.

Question 3: We know that fast growing companies need more working capital than those growing more slowly or not at all, as in mature companies. What strategy would you use to ensure sources of cash as incoming cash flow is delayed, and fixed costs continue, and paydays come every week?

Our company forecasts our immediate cash needs up to 6 months into the future; we look at all receivables and if any accounts begin to fall outside the agreed to terms then we start making calls. In a couple of cases we didn’t have the cash to meet our demands so our parent company provided the necessary cash with our stock to support the inter-company loan. If we found an advantage to reduce inventory to free up cash, we did it. Some of our vendors could be contacted to allow for slightly longer terms to help out. The list to support cast demands is as creative as you can be,