AMERICAN AIRLINES (CASE STUDY) Required: a. State and explain five (5) approaches American Airlines can take to alleviate their cash flow issues. See information below to help The following information on revenue and costs were made available to you: Month Purchase Sales ($'000) October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 140 000 105 000 157 500 87 500 105 000 122 500 105 000 ($'000) 113 750 78 750 131 250 61 250 78 750 96 250 April 2020 78 750 Additional notes: i. The cash balance on January 01st 2020 was $26 250; ii. 20% of sales is usually attributable to cash sales while the remainder is settled: a. One month after sales: 60%; b. Two months after sales: 20%. iii. 2% of sales is allocated to Sales Expenses and is paid in the month of sale; iv. 50% of cost of purchases is paid in the month of purchase and the next 50% in the following month; V. 3% of purchases is allocated to Purchases Expenses and is paid in the following month after purchase; vi. New equipment of $15 750 to be purchased in January and is to be paid in three equal instalments from the same month; vii. Outdated equipment to be sold in February for $4 375; viii.Salaries are $5 250 per month; ix. Utilities will be $12 250 in January and is expected to increase by 10% each month; and x. The firm plans to take a loan in March at an interest rate of 15% per annum. The loan amount will be $70 000. Interest is to be paid on a monthly basis equally, starting in March