Look back to Figure 9.1 in Chapter 9, which shows the working capital cycle. Which activities speed up cash flow from working capital, and which activities slow down the cash flow? Which activities can totally destroy cash flow?

Transcribed Image Text:

Inventories (stocks) Sell goods or service to customers on credit Acquire goods for use in production, for resale or for use in providing a service Payables (creditors) Pay suppliers who have allowed time to pay Receivables (debtors) Collect cash Cash Figure 9.1 The working capital cycle for a manufacturing or service business