YOU BE THE CONSULTANT... can force a company out of business, no matter how fast sales are climbing. In fact, rapid growth usually compounds cash flow problems as a company spends increasing amounts of cash on inventory, supplies, payroll, and other expenses and waits 30 to 45 days or longer to collect its receivables. The result: a serious cash crisis that could destroy a company, On the Fast Track Jon Wroten, founder of JWA Security - Services, a California-based security guard company, was thrilled when his company landed a two-year contract with the state of California. The $4 million contract accelerated JWA's growth into hyperdrive, and Wroten believed his company was finally on its way to becoming a major player in the industry. Within two years, the JWA had 14 offices, more than 1,000 employees, and $50 million in sales a far cry from the one-man operation Wroten had launched with $225 in 1981. Wroten began implementing a fast-growth plan that would double JWA's to the $ 100 million within just four years. Just as Wroten got his plans underway, however, every- thing began to unravel. JWA lost its lucrative contract with the state of California, severely affecting its sales and its cash flow. Slow-paying customers further aggravated the company's cash flow woes; some customers took as long as nine months to pay JWA for its security services. The com- pany slipped into a downwardly spiraling cash crisis. The unfortunate sequence of events proved to be a sober- ing lesson for Wroten on the difference between generating sales and managing cash flow. Failing to project realisti- 'cally the amount of cash required to fuel a company's growth and how long it takes to collect accounts receivable Given the above situation, what advice could you offer John Wroten to save his security company