Cash Flow

Answer the following questions. There are four questions.

A) Cash or cash equivalent? What does each of the small business owners have?

1. Stephen has 3 ten-dollar bills and 5 singles in the register.
2. Ben owns 100 shares of AT&T
3. Eunice owns a number of United States T-bills
4. Gerald puts $100 a week into savings
5. Greg has a note from the Omea Company that states they will pay him $1000 in 90 days.
6. Jimmie took $1000 in traveler's checks with him to Europe.

B) Stan was at his banker's trying to get a short term loan. "I need about $10,000 for three months, just until I get things straightened out.This is my situation:I got this nice order last February from Baker Company.Their bill was due last month, but so far I haven't seen anything.Now I have another big order, this time from Gisher Construction and I need to order raw materials, but I can't since Baker hasn't paid.Even when they do pay, it's only about 75% of what I'll need to order to do the Gisher contract.And then, we're headed into our slow months; no one much does anything through the winter.And with the hurricane down in Florida, people are thinking twice before placing their orders."

Stan was experiencing a number of cash flow problems that small businesses (and often larger businesses) face.Can you identify five problems?

C) Stan (from question B) was trying to get a short term loan from his banker to cover a temporary cash flow problem.What are other sources he should consider?

D)Renda is really confused. "I've got three different numbers here and I don't know what is right.My records show that I have $35,463 in the bank, but the bank statement says $37,428.When I called the bank to see about making a transfer payment, they said I had only $34,299 to spend.What is going on?"

Can you explainwhat the three balances are likely to be and why they are different?