Implementing the strategy of not paying bills

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Reference no: EM13200885

1) The chief executive officer (CFO) of a manufacturing company that is facing a severe cash crunch has a variety of working capital management tools available to address the crisis. These could include any combination of new accounts receivable, accounts payable, inventory, or cash management strategies. One popular strategy is to simply stop paying the bills altogether.

Discuss the ethics of this practice. If you were the CFO of this company, how might you go about implementing the strategy of not paying bills?

2) Analyze S&J Plumbing, Inc.'s balance sheet below:

2269_Strategy of not paying bills.png

Calculate the following:

  • current ratio
  • quick ratio
  • net working capital

Write a 1-page report that discusses the liquidity of S & J Plumbing Incorporate. Include the references.

3) Based on the numbers from your Individual Project, do you feel that the manager of S&J Plumbing, Incorporated has delivered a good profit margin? Support your argument.

Reference no: EM13200885

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