How can this property better manage its working capital

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Reference no: EM131926838

	May	June	July	August September
Credit Sales	$65,500	$58,950	$53,055	$47,750	$52,524
70% collected in next month	45,850	41,265	37,139	33,425	36,767
30% collected in two months	19,650	17,685	15,917	14,325	15,757
Cash Sales	18,500	16,650	14,985	13,487	14,835
Credit Purchases-due in 30 days	24,500	24,990	25,490	26,000	26,520
Cash Purchases	4,100	4,141	4,182	4,224	4,266
Payroll-34% of total sales	28,560	25,704	23,134	20,820	22,902
Service on mortgage-Quarterly payments		15,450			15,450
Quarterly Insurance Payment		5,400			5,400
Partner distribution-due quarterly		10,000			10,000

Question

1. From the information provided in the chart, determinee available cash for the months of July, August, and September. Assume a beginning cash balance of dollar (10,000) in July.

2. How can this property better manage its working capital? Provide specific suggestions for Watree Lodge management.

Reference no: EM131926838

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