Exercise 6-4 (Algo) Cash management strategies LO C2 Determine whether each policy below is good or bad cash management; then identify the cash management strategy violated or followed for each policy. 1. All equipment is purchased, even if it is infrequently used. 2. Cash payments and receipts are not planned. Instead, the company assumes it will have enough sales to not have to worry about cash shortages. 3. Bills are paid on the last day allowed. 4. The company regularly follows up with customers who pay late. 5. Excess cash is used to acquire productive assets or short-term investments