One of the operating activities Mary could do to avoid another cash flow crisis would be to increase the sale of products in her business or increase the price. This could be by adding more pastries to her small business that would add no extra costs and increase the merits of the pies she sells. For investing-related activities, Mary could start selling some short and long-term investments she may have to raise her cash inflow, and she could sell any other properties she has or furniture she doesn't use. Finally, some financing-related activities Mary could do to avoid the cash flow crisis could include borrowing money from the bank, which she would eventually have to repay. Still, in the short time the break is, she could borrow a small or large amount of money that would help her avoid the cash flow crisis, and once her business is back and running as usual, she would be able to pay that money back.

1. What specific operating-related activities could you suggest to Mary to avoid a cash flow crisis the next time her business volume reduces dramatically?
2. Which of all your suggestions would you implement if you found yourself in Mary and her roommate's situation? Why?

Answer rating: 100% (QA)

Specific operatingrelated activities that Mary could consider to avoid a cash flow crisis during a downturn in business volume include 1 Diversifying ... View the full answer