Essay on Cash Flow

Cash flow is not the same as cash outflow. A corporation is to experience cash outflow in instances where they are making significant payment for the raw materials when they have to bring new equipment in the company or at the moment when there is a seasonal drop in demand of goods or services. How to deal with cash flow issues or problems Cash flow is likely to be a significant issue for Watley’s. Due to this, Watley should take several steps to ensure that the question of cash flow has been solved. The company should ensure that they establish favorable credit terms with the trade partners and suppliers. The moment when one has paid down the balance, the amount of available credit is likely to rise, and it will always be there for one to borrow again in future.