Question 2 Cash flow problems are a major cause of insolvency. Cash flow planning involves making sure that a business generates enough cash at the right time to meet pressing liabilities. For example, many manufacturing businesses have a cash cycle. They buy raw materials and parts on credit and then manufacture goods, which they store as stock. They then sell these goods on credit (funds, which may be due for payment in anything from 1-3 months' time). In the meantime, they have overheads and a workforce to pay. A problem for traders is that they expect credit customers to pay on time. This provides the cash to continue the credit cycle and to pay wages and other outstanding bills. Unfortunately, the cycle often breaks down because creditors are slow to pay. This leaves the firm with a cash flow problem. a) Based on the information above, recommend five different strategies that businesses can implement in order to solve their cash flow problems (10 marks)