First, read Chapter 6 and Case 3: Miller Building Supplies in your textbook, and then watch the brief video Working Capital Video Definition.
You are the CFO of Miller Building Supplies. Using the financial exhibits at the end of the case study to determine the working capital required and actual level for each quarter of the year for the firm, address the following in your initial post:
- What challenges does Miller Building Supplies face in establishing a monthly cash budget?
- What would a cash budget provide Miller Building Supplies, if completed successfully?
- What are some working capital options that might improve the firm’s cash position and profit?
- How might the company’s accounts receivable choices impact the company?
In a one- to two-paragraph response to at least two of your classmates, comment on their answers. What improvements or challenges did they identify that you had perhaps not thought of? Provide any other short-term recommendations you can think of to improve the firm’s cash budgeting.
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