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Key Topics
Requirement
1- Write a report on Financial Management in 1500 words with reference to APA.
Solution
1. In the month of July and August there are the certain amount that is due to the supplier. The settlement of this amount will result in shortfall of cash. The relevant personnel with whom negotiations should be conducted for avoiding this cash shortfall are suppliers.
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2. There are certain contingency plans that can be implemented in order to avoid the shortfall of cash. This contingency plans are:
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In order to avoid the cash shortfall negotiations can be made with the supplier to extend the credit limit. If it is successfully negotiated with the supplier to make payment at the end of the quarter then it is possible to avoid cash shortfall.
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In order to avoid the forecasted cash shortfall the credit facility given to the patient should be avoided. That means only cash services will be provided to the patient. This strategy could negatively affect the overall number of patients. However, this strategy will improve the cash position and help in avoiding the cash shortfall.
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Lastly, the business should reduce cash expenses in order to avoid the shortfall of cash.
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Barr, M. J. (2018). Budgets and financial management in higher education. John Wiley & Sons.
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Finkler, S. A., Smith, D. L., Calabrese, T. D., &Purtell, R. M. (2016). Financial management for public, health, and not-for-profit organizations. CQ Press.
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Karadag, H. (2015). Financial management challenges in small and medium-sized enterprises: A strategic management approach. Emerging Markets Journal, 5(1), 26.
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Moutinho, L., & Vargas-Sanchez, A. (Eds.). (2018). Strategic Management in Tourism, CABI Tourism Texts. Cabi.
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Titman, S., Keown, A. J., & Martin, J. D. (2017). Financial management: Principles and applications. Pearson.
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