How can a business earn large profits

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a. If you could pick a single source of cash for your business, what would it be? Why? 

b. How can a business earn large profits but have a small balance in Retained Earnings? 

c. How can a business lose money for many years and still have plenty cash? 

d. Give two reasons why a business can be profitable for many years and still have a cash shortage? 

e. Suppose your business has $80,000 worth of liabilities that must be paid within the next three months. Your liquid (can be turned into cash quickly) assets total only $60,000, your sales and collections from customers are slow. Identify two ways to finance the remaining $20,000 you will need, so you can pay all of the liabilities when they are due 

Reference no: EM13220546

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