For the following two situations, select the statement that would be most helpful in managing cash in each situation which is consistent witheffective cash management techniques.

Situation 1: We are encountering acashflow problem, and credit terms cannot be tightened any more. Management did not approve of sellingreceivablesto afactor.

Situation 2: Sales are increasing, but cash inflow is slow, and we need to buyinventory.

-Offer customers shortercredit terms, e.g., 30 instead of 45 days. :Situation 1 or Situation 2?

-Sell receivables to a factor.: Situation 1 or Situation 2?

-Keep inventory quantities down to a level that is adequate for meeting current orders:: Situation 1 or Situation 2?

-Delay payment of liabilities by negotiating longer credit terms from suppliers, e.g., 40 instead of 30 days ::Situation 1 or Situation 2?

-Plan timing of major expenditures.::Situation 1 or Situation 2?

-Invest idle cash.::Situation 1 or Situation 2?

Balance theCashaccount daily after recording all cash transactions, including electronic fund transfers (EFT), and prepare a monthly bank reconciliation statement.::Situation 1 or Situation 2?

Check customers' credit history and references thoroughly before extending credit.::Situation 1 or Situation 2?