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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 507 |
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From this, they can forecast what proportion of a quarter's sales is likely to be converted into cash in that quarter and what proportion is likely to be carried over to the next quarter as accounts receivable." Lawrence has a cash flow problem because its main customer, Mayo, is not paying on time. Therefore, the cash outflow (payments of accounts payable) has been impacted also...
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Therefore, the cash outflow (payments of accounts payable) has been impacted also. Consideration should also be given to unexpected events when planning for cash flow as the organization had to close the contract with Gersen and made an emergency purchase to replace broken equipment.
(Allen, 2005, Chapter 31,p849-852)
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