For the following two situations, select the statement that would be most helpful in managing cash in each situation which is consistent with effective cash management techniques. Situation 1: Due to a recession, products are not selling as quickly as before, and the cash balance is too low to pay current liabilities. Inventory levels are adequate. Situation 2: Expensive equipment needs to be purchased, but most cash sales come in the fall. Statement Situation 1 Situation 2 Increase the speed of collection on receivables by offering a sales discount 1/10 or 2/10, net 30. Offer customers shorter credit terms, e.g., 30 instead of 45 days. O O Sell receivables to a factor. O Keep inventory quantities down to a level that is adequate for meeting current orders. O O Delay payment of liabilities by negotiating longer credit terms from suppliers, e.g., 40 instead of 30 O O days. Plan timing of major expenditures. O O Invest idle cash. O O Balance the Cash account daily after recording all cash transactions, including electronic fund transfers (EFT), and prepare a monthly bank reconciliation O O statement. Check customers' credit history and references thoroughly before extending credit. O X 5