Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy. 1. Customers are regularly allowed to pay after due dates. 2. Rarely used equipment is rented rather than purchased. 3. Bills are paid as soon as they are received. 4. Excess cash is put into short-term investments to earn extra income. 5. Cash payments and receipts are not planned. Instead, the company assumes it will have enough sales to not have to worry about cash shortages. Good or Bad Cash Management Strategy -2345 1. 2. 4. Encourage collection of receivables 5. Keep only necessary assets Delay payment of liabilities Invest excess cash Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy. 1. Customers are regularly allowed to pay after due dates. 2. Rarely used equipment is rented rather than purchased. 3. Bills are paid as soon as they are received. 4. Excess cash is put into short-term investments to earn extra income. 5. Cash payments and receipts are not planned. Instead, the company assumes it will have enough sales to not have to worry about cash shortages. Good or Bad Cash Management Strategy 12345 Bad Good