It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks you to do the following:

• Describe his working capital practices, including his methods of capital budgeting analysis techniques.
• Analyze the potential pitfalls in his capital budgeting practices that George should be aware of.
• Develop a simple statement of cash flows for George's Trains using any information gleaned from the video. What areas of improvement do you recommend?