Describe, in detail, the practices you would recommend to improve cash flow. Consider credit policies, collections, product pricing, and accounting processes, for example. Be sure to consider options for operating, financing, and investing activities, in your answer.

For a business organization to sustain its operations over an extended period of time, it is necessary to maintain proper management over its cash flow. For each of the following scenarios, describe in detail the practices you would recommend: Scenario 1: Over the past five years, your organization has experienced increasingly negative cash flow, requiring the business to take out a line of credit through a local bank to supplement cash shortfalls. Describe, in detail, the practices you would recommend to improve cash flow. Consider credit policies, collections, product pricing, and accounting processes, for example. Be sure to consider options for operating, financing, and investing activities, in your answer. Scenario 2: Over the past three years, your business organization has experienced positive cash flow, in excess of the expectations of company management. Describe, in detail, your recommendations for bringing cash flow in line with management s expectations. Be sure to consider options for operating, financing, and investing activities, in your answer.