1. State and discuss the concept that enables a firm to reduce its cash balances, decrease its bank loans, lower interest expenses, and boost profits.

2. State and describe the concept that shows a firm's projected cash inflows and cash outflows over some specified period.

3. Problem Question: Finology Company's average collection period (DSO) is 37 days, which is only seven days longer than the net 30-day term the company offers its credit customers. Fifty percent of Finology's customers pay on average on Day 20, and 30 percent pay on Day 40. On what day do the remaining credit customers pay? Assume Finology has no bad debts.

4. What is a cash conversion cycle and how can it be used to increase the liquidity (cash flow) position of a firm? Respond to the postings of two class members by asking questions about the topic.