Minimize the negative cash flow

Assignment Help Finance Basics

Reference no: EM1355962

Congratulations! Your small company was just awarded a lucrative contract to provide hundreds of widgets to the US Government. If you perform well, you'll be on "easy street" with all the follow-on business. It will take you 6 months to produce and deliver the units. The US Government will not provide up front payments (payments prior to delivery) and, is notoriously late on paying "net 30" invoices.

a. What can you do to minimize the negative cash flow of this deal?

b. How are you going to keep your company afloat until you get paid?

Reference no: EM1355962

Questions Cloud

Depreciation and payroll journal : Illustrate the effect on the account and financial statements of paying and recording the March 17th payroll. Determine the following amounts of the employer payroll taxes related to the March 17th payroll: a) FICA tax payable b)state unemployment t..

Benefits of using diagnostic labels : What are the benefits of using diagnostic labels to identify and describe abnormal behavior? What are the risks of using diagnostic labels to identify and describe abnormal behavior?

Describe some ways for the firsthand knowledge : Describe some ways in which the firsthand knowledge we have of some topic goes beyond what we are able to write down in a language. What accounts for our inability to express this knowledge?

Illustrate what happens to equilibrium price and quantity : Illustrate what happens to the equilibrium price and quantity in each market. Which product experiences a larger change in price.

Minimize the negative cash flow : Suppose your small company was just awarded a lucrative contract to provide hundreds of widgets to the US Government. If you perform well, you'll be on "easy street" with all the follow-on business.

Burns company-journal entries : Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. Show the year-end balance sheet presentation for accounts receivable.

Installment sales method of accounting : Neber Corporation, which start operations on January 1, 2007, appropriately uses the installment-sales method of accounting. The following data pertains to Neber's operations for the year 2007:

Explain each employee qualifies to earn overtime : Explain Each employee qualifies to earn overtime at a rate of 1.5 of his or her hourly rate for every hour greater than 40 hours.

Concept of abnormality : Another problem related to the concept of abnormality is its use in personality inventories. Most personality inventories refer to what is abnormal based on what is considered maladaptive behavior.

User Account

All Pages