Description
Read the mini-case study, Bulltuff Stock Trailers, Inc., from Entrepreneurial small business and answer the mini-case study questions, keeping in mind the following considerations:
- What is causing Hal’s cash flow problems?
- Develop a plan to address the problems.
Your well-written paper should meet the following requirements:
- Be 3-4 pages in length, not including cover and reference pages.
- Be formatted according to the CSU-Global Guide to Writing and APA Requirements.
- Cite a minimum of three sources--two of which should be academic peer-reviewed scholarly sources to support your responses--in addition to your textbook. The CSU-Global Library is a great place to find these resources.
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Explanation & Answer
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What are Hal’s cash flow problems?
There are two main causes that could be leading to this cash flow problems. First, Hal is
expected to pay bills immediately. This does not matter how long he has to wait for his debtors
to pay him for sales he has made in credit. Secondly, his business is said to have grown by
approximately 12% per month. Due to addition of cash payments for things like labor, materials
and even sales that is expected to be made in every month exceeds the cash payments that his
customers make by about a third of the sales that his business receive due to the realized sales
increase. This is a very good example of what accountants refer to as growth trap which has been
said to be causing failure in many of the busines...