!! nd A Aa Align Text Corrvert to SmartArt AZ2-> . Shape Fill- Shape Outline Shape Effects ale de Replace Arrange Quick Styles Drowing 19 Paragraph Edito After managing a commercial interior design business for a few years, Rose Corrick decide her own business and founded Art of Cloth, a producer of hand-dyed fashion textiles in 200 off well. Then the recession hit and customers began cancelling orders, even though Art of Cloth har made some custom products. The result was $30,000 in lost revenues. Corrick felt she had li recourse, as she did not want to cut off customers who might return in better economic tin business began having major cash flow issues. As Corrick explained, "All of a sudden, we pay our bills. Being such a small company, it was very painful." In response to the changing conditions and the cash flow problems, Corrick negotiat favourable payment terms with several of her suppliers. She stopped paying herself a salary forced to lay off people. Finally, she used her personal credit card to pay for some expenses, such as travel to trade shows. Corrick established three priorities: (1) Cut expe would affect revenues the least, (2) make the firm's products more marketable, given the e realities, and (3) carefully monitor the company's cash flows. . Accordingly, she cut prices on several higher-priced items by 15 to 30 percent, based on from her customers. To offset the lost revenues, she found a way to cut manufacturing improve efficiency by speeding up the dyeing process. But she continued to attend design major markets to gain exposure to prospective buyers, spending $1,000 to $4,000 to attend e By late 2009, her efforts were paying off. Although the number of boutiques carrying he had decreased slightly, sales remained at about the same level as in 2008 $362,000. Then, sales nearly doubled to about $715,000 and were expected to be $1.2 million in 2011. QUESTIONS: 1. What does this scenario illustrate about financial management? Acth