Canton Supplies, Inc., is a service firm that employs approximately 100 people. Because of the necessity of

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Canton Supplies, Inc., is a service firm that employs approximately 100 people. Because of the necessity of meeting monthly cash obligations, the Chief Financial Officer wants to develop a forecast of monthly cash requirements. Because of a recent change in equipment and operating policy, only the past seven months of data are considered relevant.

Canton Supplies, Inc., is a service firm that employs approximately

As you can see from this graph, cash flows have been erratic. Maybe there is some seasonal cycle for this firm that is not described in the problem. It could be logical or simply - erratic! What are the implications of such an erratic cash flow for the CFO?

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Related Book For  book-img-for-question

OM6 operations supply chain management

ISBN: 978-1305664791

6th edition

Authors: David Alan Collier, James R. Evans

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