Grape Vineyards, LLC, is a former winery in Napa Valley. It has been suffering from cash flow
Question:
Grape Vineyards, LLC, is a former winery in Napa Valley. It has been suffering from cash flow issues and will need financing to get through the fall grape crushing. It has considered several ways to increase sales, including touring, selling tickets to see the crush, and selling its existing inventory of bottled wine through more outlets, but these activities will be insufficient to raise the funds needed during the next three months to cover payroll. machinery and equipment expenses, advertising and operating expenses. You have several thousand dollars in accounts receivable that you are working diligently to collect and have revamped your accounts receivable practices to eliminate delays between billing and payment. You have already sold the wine in your inventory. The white wine that will be produced this year will not be ready for bottling for another four months and the red wines will not be ready for two years.
What will the company do to be able to pay the bills for the next three months?