About eight months ago, your friend Minnie Minder started her own bookkeeping business. She caters to small businesses and has now developed a fairly large clientele. Yesterday, she called you and asked you to come over and give her some advice. It appears that although she has lots of business, SG is Noving Serv cash flow problems. "I can't pay my bills!" she exclaims, "and I want to get a bank loan to get more up-to-date office equipment, but the bank won't lend the business any money. Please come over and help me!" So today you went to Minnie's office, and asked to see her general ledger and her latest financial statements. Although the records are up to date, including the receivables and payables, Minnie admits she hasn't had time to prepare any financial statements yet. You ask her about the receivables, and she agrees they are rather high, but all of her revenue is on account. She also adds that "The economy still isn't very good, and most of my clients are self-employed tradesmen, and I hate to ask them for money when they're having a tough time." You create a trial balance, based on the general ledger, which follows: MINNIE MINDER ENTERPRISES Trial Balance (date) Dr Cr Cash $ 3,375 Accounts receivable Prepaid insurance. Supplies. 56.250 2,250 3,500 Equipment 11,250 Vehicles.. 31,250 Accounts payable. $ 17,625 Deferred revenue. 10,125 Dividends declared. 22.500 Common shares. 18,750 Service revenue 137,500 Rent expense. Utilities expense.. 40,000 8,750 Salaries expenses. Totals. Notes: 4,875 $184,000 $184,000 The "official" credit terms for receivables and payables are n/30. Instructions Use the answer section below to suggest approximately 5-7 ways that Minnie can improve her cash flows. Do not list generalities but address her specific situation.